Needing a loan and getting turned down by banks and other traditional sources of lending can be very frustrating. People who don't measure up in the employment status, collateral, and credit categories will most likely have to direct their search for financing elsewhere, such as one of the Atlanta private money lenders.
Private investors often approve candidates to whom banks denied funding. A loan officer or lender is the person who has connections to these investors and acts as a proxy between them and prospective borrowers. Each client's needs differ, as do the terms and rates of these loans; it is the job of the lender to find the best match.
A borrower may know of a lender through a personal referral, or they can search online or in the Yellow Pages for some potential candidates. Before accepting their services, it's advisable to ask for some references and contact them, and also find out the lender's foreclosure rate.
Once a lender has been selected, the prospective borrower will need to apply for financing. A "Statement of Information" form is submitted along with any supporting documents to provide an overall picture of the applicant's financial situation. Any problems the borrower has in terms of credit history, assets etc. Should be brought to the attention of the lender, since he or she may be able to offer a work-around for this issue.
Based on the information presented in the client's application, he or she will be offered a suitable money loan package that matches their needs, assuming they pre-qualify. The rates and amount of the loan are determined by both the ability to pay it back and the nature of its intended use. It's advantageous for the borrower to explain in detail to the lender, how the loan will be used.
In the case of real estate loans, it may also be necessary to have an appraisal done, secure an Automated Valuation Model or Broker Price Opinion, and meet with an escrow company before approval. If there are any outstanding liens against the applicant or the property to be purchased, these must first be resolved, and the necessary documentation provided before a new loan can be granted.
Once the loan has been approved, the lender will prepare the official contractual documents for the borrower to review and sign. It is the borrower's responsibility to ensure that they have a clear understanding of all terms. Next the funds will be released and the proceeds directed to the investor. Loan documents will be filed with the county, and the loan servicing company will "board" the loan, establishing a payment system and schedule.
Private investors often approve candidates to whom banks denied funding. A loan officer or lender is the person who has connections to these investors and acts as a proxy between them and prospective borrowers. Each client's needs differ, as do the terms and rates of these loans; it is the job of the lender to find the best match.
A borrower may know of a lender through a personal referral, or they can search online or in the Yellow Pages for some potential candidates. Before accepting their services, it's advisable to ask for some references and contact them, and also find out the lender's foreclosure rate.
Once a lender has been selected, the prospective borrower will need to apply for financing. A "Statement of Information" form is submitted along with any supporting documents to provide an overall picture of the applicant's financial situation. Any problems the borrower has in terms of credit history, assets etc. Should be brought to the attention of the lender, since he or she may be able to offer a work-around for this issue.
Based on the information presented in the client's application, he or she will be offered a suitable money loan package that matches their needs, assuming they pre-qualify. The rates and amount of the loan are determined by both the ability to pay it back and the nature of its intended use. It's advantageous for the borrower to explain in detail to the lender, how the loan will be used.
In the case of real estate loans, it may also be necessary to have an appraisal done, secure an Automated Valuation Model or Broker Price Opinion, and meet with an escrow company before approval. If there are any outstanding liens against the applicant or the property to be purchased, these must first be resolved, and the necessary documentation provided before a new loan can be granted.
Once the loan has been approved, the lender will prepare the official contractual documents for the borrower to review and sign. It is the borrower's responsibility to ensure that they have a clear understanding of all terms. Next the funds will be released and the proceeds directed to the investor. Loan documents will be filed with the county, and the loan servicing company will "board" the loan, establishing a payment system and schedule.
About the Author:
Tom G. Honeycutt is a full-time real estate entrepreneur in Atlanta, GA. Tom helps readers by providing practical and useful knowledge to better understand lending choices. If you are looking for How to find Atlanta Commercial Private Lending he suggests you visit his friend's for more information.
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