Hard money loans like the ones you get at Indianapolis Hard Money Loans are loans that don’t require exasperating efforts on your part to prove that you can repay timely and efficiently based on your credit score and your income, amongst other things. If that sounds like a good fit for you, and you’re currently struggling, here are the top five things you must know about hard money loans before you pursue one.
1 They Are Flexible
With hard money loans, the underwriting process isn’t standardized. Thanks to this it means there is a lot more flexibility for you in terms of conditions and processing. For instance, schedules for repayment can be made to fit what’s best for you instead of what’s best for the company, so that it’s a more reasonable and realistic payment process.
2 Their Approval Rate Is Higher
Hard money loans are primarily focussed on collateral like your house, your car, or your business. This means that approval rate is a lot higher because instead of having to prove a credit score and a proud job history, you can rely on a contract similar to one of good faith which relies on the understanding of a potential repo man shaking your hand if you don’t make the bill. No one is going to bother digging through your life and your finances with a microscope. So long as you have collateral you have a loan.
3 They Process Fast
Also, due to the collateral contingency, this means that you will leave the lender’s office with security in a quick payout so that you’re not waiting nervously by the mailbox for months on end with your fingers crossed only to be met with a big fat denial letter and extra anxiety.
4 They Are Bandaids, Not Long Term Plans
If your interest is involved with something with high stakes and slowly payout like a trumped-up business plan, hard money loans are not going to be your best friend. Think of hard money loans as bandaids. They’re not meant for long term security. They’re meant as quickly get out of jail free cards while you race through the board to cross Go!, collect your necessary funds, take your collateral off the books, and replace it with the money that the collateral was charged for.
5 They Are Expensive
How much does your house cost? What about your 86′ impala? Maybe, you’re a bike guy and you put up your 76′ Ducati or a musician who put out his 64′ Stratocaster. Regardless of what your collateral is, it took you a long time and a lot of effort to raise the money to purchase these expensive pieces of equipment that turned into an extra appendage or an addendum to your soul. Likewise, the hard money loans you are going to take out on the heads of these possessions are not going to come cheap. If it’s not worth losing your cookies over it might not be the best bet for you.
Indianapolis Hard Money Loans makes it their business to try to help you get what you need at a reasonable rate and time, but hard money loans aren’t for everyone. You should be wise to carefully consider your options before jumping up and throwing down your most prized possessions to dig yourself out of the hole. That being said, it’s your call and at the end of the day, you know what’s best for you. Make that call and feel secure in your decision when you visit or dial Indianapolis Hard Money Loans today
