First off, it is very important to realize that all Licensed Money Lender is not equal and they don’t work under the same terms and conditions.
For every particular need, there is a particular money lender. You can’t expect that anyone who wants to lend money will lend you, irrespective of your need.
There are different types of lenders in the market. Some are related to real estate and some are related to business. So, your first step before asking for lending is to find the right lender for your situation.
Instead of talking to every lender and wasting each other’s time, it is better to search few right lenders and then, find the best one amongst them. It will make things easier and much faster for you.
Let’s discuss different money lenders as per your loan requirements:
- Title Loan – It basically means that you have a title against which you are trying to get a loan. That title could be your car or some expensive jewelry. You will go to the money lenders who deal in title loans and sign a contract that you will give their money back in a certain period of time and if you are failed to do so, they will take your title away from you.
- Pay Day Loans – If you are in need of quick cash and you are doing a good job. Then, you can go to these lenders and asked them to give you money and for that, they can take the paycheck you will get at the end of the month.
- Signature Loans – These loans are completely dependent upon your credit history. If you have an excellent credit history and your bank account is free of any bad credit history, then your bank can give you this loan in good faith.
- FHA or Conventional Loans – This comes under real estate and is usually owner-occupied homes or rental properties. For getting this loan, you need to have a very good job and credit history and you will need to go through a lot of documentation.
All of the above loan types need you to have a good credit history, job security, and no judgments or tax liens, or bankruptcy.
But what if you don’t have all of this or what if you are a self-employed person? Here come hard money lenders.
Hard money lenders usually give a lot of space and options to the borrowers as they are privately held and don’t follow the typical rules and regulations like other lenders.
Finally, if you want to choose the right hard money lender for you, then first you need to look at their funded deals. Just go through how any deals they have funded till now. That will help you understand that there is actual money involved in it and they are real.
You can easily find this information on different hard money lenders’ websites under funded loans or success stories, which give all the details about that particular property such as purchase price and loan amount funded.