When homebuyers are looking for a home loan, choosing between a private lender and a bank can be a common problem. If you’re not sure which to choose, this article will point out some of the differences to help you make the right decision for your situation. Unlike traditional home loans, a home loan from QKapital has benefits that banks can’t beat.
It’s easier to get approved by a private lender
Your credit score may not be in great shape and, let’s face it, it’s not easy to fix and it can take years to recover from a bad period in your credit. This can prove to be a huge hurdle to overcome when working with a traditional bank.
When working with a private lender, your credit rating and history may not matter as much, as private lenders can obtain collateral in other ways. Private lenders are much more flexible in choosing their beneficiaries, and for that reason, they are known to take more risk. Regardless of your credit score, a private lender may give you a better chance of getting a home loan.
Building a financial association
Pursuing private loans is a great way to start a financial partnership with a home loan company like QKapital. Meeting your financial obligations, meeting your payments, and demonstrating that you are a worthy beneficiary will prepare you for a partnership with a private lender that will open doors to endless investment opportunities.
It’s easier to get approved by a private lender
Private lenders like QKapital view the application process differently than traditional banks. A private lender is not always interested in your credit, employment history, or investment portfolio. Private lending is all about risk management and at QKapital we have some of the best risk managers and consultants in the business. Private loan firms are equipped to give you a fighting chance for a home loan.
Largest down payment
Most mortgage loan offers require you to pay at least 5% of the full price of the property. Traditional banks generally prefer that you make a down payment of at least 20% of the down payment on the property to give you better terms on the loan.
With a private lending company like QKapital, there’s a chance you’ll receive 100% of the purchase price of the property and only have to pay the origination fee and interest until the loan is paid off in full.
In conclusion, when looking for a mortgage loan, private loans can give you a great advantage over your competition in terms of time and amount of financing. If you have any further questions about your mortgage loan, feel free to contact one of our mortgage loan officers by phone or email.
