A hard money loan is a loan that is given based on the value of an asset, such as property. Hard money loans come from private investors or companies, rather than banks. The terms of a hard money loan are usually shorter than a traditional loan, and the interest rates are higher. You may wonder if a mortgage lender should review such a loan first.

Quick Approval

One of the benefits of a hard money loan is the fast turnaround. If you need money immediately for an emergency purchase, repairs, or buying a home without a mortgage loan, a hard money loan lender can approve you within 24 hours. This is in contrast to a traditional loan from a bank. A bank loan can take weeks or even months to be approved.A hard money loan may be your best option if you have bad credit.

High Interest Rates

Your hard money loan may come with high-interest rates since the lender is taking on a higher risk by lending you money without collateral. In addition, hard money loans usually have a shorter period than traditional loans, so the lender wants to ensure they get their money back quickly. A mortgage professional can help you compare interest rates and terms to find the best loan for you.

Can a Hard Money Loan Be Used to Refinance?

A hard money loan can be used for many purposes, including refinancing. If you have good equity in your property, you may be able to get a lower interest rate by refinancing with a hard money loan. A mortgage professional can help you determine if refinancing is right for you.

Consider All Your Options

Before you apply for a hard money loan, speak with a mortgage professional. They can help you understand all your options and help you get the best loan for your needs. A hard money loan may be a good option for you, but it’s important to make sure you understand the terms and conditions before you sign anything.

Seeking out a hard money loan lender can be a great option when you need money quickly. However, you should understand the terms of the loan and compare interest rates before you sign anything. A mortgage professional can help you. If you’re ready for a loan, contact a professional hard money loan lender, Arc Private Lending, today.