When homebuyers are looking for a mortgage loan, choosing between a private lender and a bank can be a common issue. If you aren’t sure which one to choose, this article will state a few of the differences that will help you make the right decision for your situation. Unlike traditional mortgage loans, a mortgage loan from QKapital has benefits that banks can’t beat.
It is easier to get approved by a private lender
Your credit score might not be in great shape, and let’s face it, it is not easy to fix and it can take years to come back from a tough period on your credit. This may prove to be a huge obstacle to overcome when working with a traditional bank.
When working with a private lender, credit score and history may not matter as much since private lenders can secure collateral in other ways. Private lenders are a lot more flexible when it comes to 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 at a mortgage loan.
Building a financial partnership
Seeking private lending is a great way to start a financial partnership with a mortgage lending firm like QKapital. Honoring your financial obligations, following through on your payments, and proving that you are a worthy beneficiary will set you up for a partnership with a private lender that will open the doors to endless investment opportunities.
Faster approval process
Private lenders like QKapital see the application process differently than traditional banks. A private lender is not always interested in your credit, work history, or investment portfolio. Private lending is about risk management and at QKapital we have some of the best risk managers and consultants in the business. Private lending firms are equipped to give you a fighting chance for a mortgage loan.
Larger down payment
Most mortgage lending deals require you to put down at least 5% of the overall price of the property. Traditional banks usually prefer you to put down at least 20% of the down payment for the property to give you better terms on the loan. With a private lending firm like QKapital, there is a chance that you may receive 100% of the property purchase price and you would only need to pay the origination cost and the interest until the loan is paid off completely.
In conclusion, when looking for a mortgage loan, private lending can give you a huge advantage over your competition in terms of timing and financing amount. If you have any further questions about your mortgage loan, please feel free to contact one of our mortgage loan agents by phone or email.