It is important to have a list of questions to ask all of the Arizona Hard Money Lenders that you are considering. The answers will help you to make the best selection for your needs.
When interviewing hard money lenders, it is critical that you have a list of questions for each to answer so that you have a means of comparing all of your options. With the following list of questions, you will gather all of the information that you will need to make a good selection for your next hard money loan.
One of the first questions to ask is how long it will take to process the request and fund a loan. This will give you an idea of the when to expect the funding so that you can inform the property owner. Most lenders will offer to fund in under two weeks. Knowing that information, you should then determine what the interest rate will be to borrow the money. This is a very important factor, especially if your budget is tight on the project. And finally, you will need to know the maximum loan to value that each lender will offer. Knowing this tells you how your down payment will be.
Loan terms can also make or break a deal. You will need to know how long the term of the loan will be and also what are all of the costs and fees that you will need to pay. It is a good idea to have these items listed in writing and also when you request the loan, ask for the total cost of the loan so that you are assured of no hidden fees. This is also a good time to ask Arizona Hard Money Lenders to verify the down payment that is required.
Other Terms
Most Arizona Hard Money Lenders will not prohibit the use of the loan fund for repairs but you should ask each lender just to be certain. This is also a good time to ask each lender if they are willing to defer the interest payments until the end of the loan. Some lenders require monthly interest payments while others could defer some or all of the interest until the end of the loan term. You should also ask if there are any ways that you could get a lower interest rate. In some cases, a lender will lower your interest rate if you make a larger down payment or if you can increase your credit score before the actual time of the loan request.
Compare Apples to Apples
Having a list of questions prepared to ask all of your potential lenders will help you to get all of the information that you need to make a well-informed decision. In some cases, it could be worth paying a little more for a loan that offers a longer term or other benefits such as deferred interest or a faster funding time. But you will only learn about this information if you ask the right questions.
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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