Why Borrowers May Choose a Private Mortgage

The process of buying a home will require you to contact local banks and mortgage companies to determine the financing options that are available for you. The reality, however, is that not everyone qualifies for a traditional mortgage from these institutions. While this can be discouraging, it does not mean you cannot purchase your dream home. 

There are other options you can consider, and private mortgages can help in these situations. This type of mortgage is a loan created and offered by a private individual. This option allows borrowers to bypass the many requirements and obstacles associated with a traditional mortgage. 

There are a number of reasons why borrowers may choose a private mortgage, including the following:

• Easier to qualify. 

Qualifying for a traditional bank mortgage is hard, if not impossible, for many people. If your credit score is less than perfect, both banks and mortgage companies will reject your application. The same may be true if you are self-employed and do not have proof of stable income, as you will be considered a risky client, and your loan application will be denied. On the other hand, private lenders are less concerned with these issues, and as long as the deal seems profitable to them, they will offer you the money you need to buy a house.

• Shorter approval process. 

Banks follow a very strict filing process when it comes to processing mortgage loans, which is both stressful and time-consuming. Private lenders do not follow the same stringent regulations and do not have to deal with red tape. This will result in a shorter approval process, and acquiring a loan through a private lender is much faster when compared to applying for a loan in the traditional sense. This is ideal when a real estate agent is offering a deal that requires you to act quickly.

• Larger down payment. 

Traditional mortgage lenders have many requirements and will not finance the entire amount you need to buy a house. You will have to find money from another source to finance a real estate deal if you choose to borrow from a traditional mortgage lender, but a private lender will not have such requirements in place and may even provide you with all the money you need to buy a home.

Not everyone will be able to go through a traditional bank or mortgage lender. If you are interested in a more flexible way of financing a home purchase, it is worth looking into a private mortgage. Borrowing from a private lender will not only allow you to bypass hurdles associated with traditional mortgages, but you will also enjoy a stress-free and enjoyable experience. 

If you are looking for the best deal and want a private mortgage, you need to work with a reputable team.

You can depend on CYR Funding when buying your dream home. Call (905) 731-1111 today to find out more!