Benefits of a Private Mortgage!
If you’ve been looking around for a mortgage, and haven’t been approved at traditional banks perhaps the term private mortgage has been thrown around a little bit. This might be unfamiliar territory for you, but that doesn’t mean it has to be scary. A private mortgage lender can be extremely beneficial for those looking to buy a home. If you’re still unsure about a private mortgage, here are some benefits of working with a private lender for your mortgage.
Great mortgage rates
Private lenders, especially for mortgages, know the mortgage landscape and they know exactly what other lenders are offering to clients. Unlike traditional banks, which have to follow very specific regulations, private mortgage lenders have a larger range of interest rates available so it isn’t just one set rate. Private mortgages are little more flexible, and you’ll find the mortgage brokers who work with private lenders are willing to work to find what’s best for you.
These lenders are in one business: helping you buy your home, whether it’s your first one or your dream home so they want to make sure the process of this large investment is easy. Due to their independence, which the big, traditional banks don’t have, they can streamline their approval process and make it incredibly easy for you to know exactly how much mortgage you’re approved for and you can start shopping for your new home!
Traditional lending institutions have very strict guidelines they have to follow, and this is making it much more difficult for many Canadians to purchase a home. Private lenders do not have these same strict rules, so they can work with all their clients to find the right mortgage product for them.
Minimal red tape
New lending guidelines imposed across Canada are making it really tough for homeowners to qualify for their first mortgage, or even to buy a bigger home. Traditional banks are asking for extensive documentation relating to proof of income, debt obligations and more. Private lenders have streamlined the process for mortgage approval, and they can help make sure you get the best mortgage for you without jumping through as many hoops. They also are helpful for Canadians who might have a poor credit history, or who are new to Canada and looking to build a credit history. Since these lenders are not bound by the same guidelines as other banks, they can work with clients regardless of their situation.
More than just a mortgage
Buying a new home is a really big investment, probably the biggest you’ll make in your lifetime. At this time in your life, there will be a lot to consider before you officially sign on the dotted line. Brokers for private mortgage lenders understand mortgages, but even more they understand the real estate market in your area. The advice they can offer you on this purchase, and help you through the pros and cons of purchasing will be incredibly helpful during this time in your life as you might find you’re a little overwhelming with the purchasing process. Let their experience help you make the best decision when buying your home.