Are you looking for a loan for an upcoming real estate transaction? There are a lot of hurdles that you need to jump through if you are interested in a traditional loan, and you might have a difficult time getting approved. Fortunately, there are other options available, and you might have heard that a hard money lender can help you. If you want to get approved for a hard money loan, what are some of the most important criteria that you need to meet? Learn more below, and do not hesitate to reach out to a professional who can help you.
The Value of Your Assets
If you are interested in a hard money loan, you are probably looking for a loan that does not require you to have a specific level of income to get approved. The main advantage of working with a hard money lender is that you do not necessarily need to demonstrate a consistent income stream, but you still need to have something to back up the loan. In that case, the lender is going to take a look at the value of your assets to make sure you have enough assets to back up the loan you want to take out. This could include your bank account, your retirement accounts, your car, or even your house.
Your Overall Credit Score
Next, the lender is going to take a look at your overall credit score. While the terms of a hard money loan are typically less rigorous than a traditional loan, you still need to make sure your credit score is solid if you want to get approved for a hard money loan. Do not forget that you are entitled to at least one free credit report per year from the major credit bureaus, so you should ask for a copy of your credit report in advance. That way, if there are any mistakes on your credit report, you can get them corrected before you apply for a hard money loan.
Your Debt-to-Income Ratio
Your lender is also going to take a look at your debt-to-income ratio. Again, the terms of the loan will probably be less rigorous, but the lender will still want to make sure that you do not have numerous other sources of debt before you take out another loan. Therefore, if you want to maximize your chances of getting approved for the most favorable terms possible, you should try to pay down your other sources of debt before applying for a hard money loan. A few examples include a car loan, a personal loan, or even your credit card debt.
The Value of the Property
Finally, the lender will also take a look at the value of the property that you want to purchase. For example, if you want to purchase a rental property, the lender is going to take a look at the value of the rental property before deciding whether to give you a loan. The more expensive the property is, the larger the loan you will need to take out and the more rigorous the terms of the loan will be. If you want to figure out how expensive a property you can purchase, you should reach out to a hard money lender ahead of time to make sure you can get approved. That is where we can help you.
Contact Wildcat Lending for Help With Hard Money Lending
If you would like help qualifying for a real estate loan, we are available to help you. At Wildcat Lending, we have already helped countless people purchase properties of all shapes and sizes, and we would be happy to review your situation as well. By working with a hard money lender, we can provide you with loans that might not be available to you otherwise, providing you with customizable options that you can tailor to meet your needs.If you would like to see what types of options we have available for your specific situation, give Wildcat Lending a call today to speak to a member of our team, and schedule an appointment to have your financial situation reviewed! We serve several states throughout the nation, and we would be happy to help you.