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Whitby Private Mortgages
What are private mortgages?Privately loaned money that is substantial enough to purchase a home... this is what Whitby Private Mortgages is and it is a perfect solution for people that are not approaching regular banks or credit unions. Banks and credit unions are monitored by the government because the government is the source where banks get their funding (hence why their qualifying criteria for a mortgage loan is so strict). Private Mortgages lenders have more wiggle room for approving mortgage loans because their sources for funding are from private sources like accredited investors, wealthy individuals and hard money lenders. Private Mortgages afford people an alternative means of obtaining a mortgage loan.
How do private mortgages work?There is an application process that Whitby Private Mortgages lenders must undertake with borrowers to establish a financial overview. Yes, there will be a credit check and income verification with the anticipation for the borrower to have a sizeable down payment (up to 20% of the purchase price of the real estate of interest) and the borrower will be encompassing a higher interest rate to offset the higher risk that Private Mortgages lenders take. Yes, the real estate does act as a security against the mortgage loan. After the application has been satisfied and you have been approved for Private Mortgages, the lender will then provide you with the funds you need to purchase your new home! It does cost more to deal with a private lender, but there are various reasons some people avoid dealing directly with a bank or credit union (as they offer lower interest rates), with the biggest reason being unable to qualify because of rigid criteria.
When is taking out a private mortgage helpful in your financial strategy?Getting the funds needed to purchase a new home has many gainful impacts on a person and their financial future. Paying higher interest and having a possible shorter amortization schedule should not deter people from reaching their goals of home ownership. The private sector is sometimes the only way some people can go, but the good news is there are more traditional opportunities that will open-up down the road and the possibility of switching your mortgage loan to a bank for a better mortgage plan (mortgage refinancing). Each person who uses Whitby Private Mortgages lenders establishes a relationship-based service, in other words, working with the lender feels like you are the only customer and the lender works very hard to get your application approved for a mortgage loan. Your success is the lenders success and visa versa!
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