(It is important to use every tool correctly and Texas Hard Money Loans are no different. These five tips will help to ensure your success using hard money.)
It is important for new borrowers to understand that Texas Hard Money Loans are provided by private lenders and are not required to follow the same regulations as a traditional bank or mortgage company. This means that borrowers should complete a great deal of research and compare several Texas Hard Money Lenders before selecting a lender to work with. During that selection process, the following five tips can be very helpful in your information gathering process.
The first thing to look for is a broker who is leading you to believe that he or she is a lender. This should be a part of the information that he or she discloses to you. The second tip is along the same lines and is to look for full disclosure from the lender or broker that you are speaking to. It is also important to remember that as you get further into the lending process, it is equally important for you to be completely honest with your lender.
Another red flag to be aware of is a lender who is requiring a lot of upfront fees be paid before a loan is approved. This is often a sign of a less than honest lender. Texas Hard Money Loans can require a few upfront payments for things like an appraisal but not huge fees for other documentation or processing. Ask each lender to provide you with a written copy of all fees and charges for the loan you are requesting so that you can compare the total cost of the loan from each lender.
Bait And Switch
Another issue to be concerned with is a lender who offers and price quotes on loan product but then begins to explain other options or actually starts to process a different type of loan for you. These ait and switch type moves are often to get more money from borrowers without disclosing the changes in the loan.
Know The Terms
As you speak to more lenders, you will begin to learn the common terms and conditions for Texas Hard Money Loans. The details will explain the fees and interest as well as the repayment schedule and penalties that you could be charged during the life of the loan. All lenders have the ability to create their own loan terms but beware of any very unusual terms or terms that appear to be very confusing. This can be a sign that you are dealing with a less than honest lender or even a complete scam artist. As a new borrower, it is always a good idea to request a complete copy of the loan documents to have reviewed by an attorney. If a lender is not willing to provide that copy of the documents, then it is a good indicator that he or she has something to hide and that you should find a new lender immediately.
Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.
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