5 Reasons To Consider A No-Risk Bridge Loan For Your Down Payment Eliminates The Need To Refinance Your Current Mortgage

Getting a bridge loan is one of the smartest financial decisions that a homeowner could make. They own a desirable home, have almost no debt, good credit histories, and virtually no tax debts. However, they don't need a loan, because anyone who provides them a traditional bridge loan for ninety days will process tons of paperwork for little return. There are times when a homeowner would qualify for a traditional home loan, but there are also times when a traditional bridge loan may be a better option.

The first thing to look at when getting fix and flip loans is an income statement. This document details all of a borrower's current financial activities, including current and upcoming expenses, income from other sources, and the total value of all assets. When preparing the income statement, it is important to include all of a homeowner's monthly expenses, as well as all current and upcoming debts, both unsecured and secured. Some lenders will ask for verification of financial information, such as an updated pay stub from a job or a voided check from a utility payment. A financial analyst can help in this regard, especially if the loan application is being handled on behalf of a client that has recently been turned down for an unsecured loan.

One of the primary benefits of getting bridge loans from private lenders is that there are rarely any or very few pre-approval letters. Typically, a letter of authorization will be sent to the applicant with a detailed outline of their loan agreement and what the financing will entail. Private lenders do not typically require borrowers to submit income statements, since these are not necessary to obtain a traditional home loan. Private lenders also make it very easy to get pre-approval, since most do not even require a credit check. If an individual has had a previous experience with a traditional financing company, it can help to improve the chances that a private lender will approve a bridge loan. Learn how to get a loan for a rental property here!

If an individual has a good history with one or more traditional mortgage companies, getting a no-obligation quote from them prior to submitting a formal mortgage application can greatly increase the chances that they will get a positive response. In order to receive this quote, however, it is required that borrowers provide all of the applicable documentation that is required to substantiate their income and other loan-related information. Private lenders are not limited by any federal guidelines when evaluating a borrower's ability to repay a loan. Some lenders will even reject an application if a borrower has a bankruptcy or foreclosures history. It is always important to ensure that all of the required documentation and information is submitted to ensure that a bridge financing company receives an accurate quote. Know more about loans at https://en.wikipedia.org/wiki/Small_business_financing.

Although there are many attractive benefits of obtaining a no-risk bridge mortgage alternative, some individuals still choose to work with traditional mortgage companies. Many people mistakenly believe that applying with a traditional lender will guarantee that they will be approved. However, there are several ways to obtain competitive quotes and an acceptance process that will meet their needs. One should consider these 5 reasons to consider private lending.

As mentioned above, obtaining a quote from a traditional lender may not be the best option if an individual needs money to purchase a new home. Bridge loans are designed to help individuals overcome a financial barrier in order to buy their first home. In order to obtain competitive quotes from lenders, individuals need to look for lenders that specialize in these types of home equity loans. Two mortgages that can often be considered are a refinance loan and a bridge loan. These two mortgages eliminate a borrower's need to refinance their current home loan in order to pay down the principal.