Private Mortgage Lenders in Newmarket
Many people turn to private mortgage lenders when the traditional banks have turned them down for a loan. Banks have specific criteria that must be met before they can provide a loan. Newmarket private lenders base the lending decesion primarily on how much equity is in the property. Getting a loan or mortgage from a private lender requires much less paperwork and can be completed much faster. Even if your local bank has turned you down a private lender can still approve your mortgage based on the equity in your home. Call us for a free consultation regarding your mortgage.
Newmarket Private Lenders
Our Newmarket based lenders are very fimilar with the local area. They have a long history with the local real estate market and can provide their own estimate regarding the value of your property. Most private lenders will come to inspect your home (so make sure it is clean), they will look at the general condition of the property, are there any significant repairs that need to be done, such as a new roof or plumbing issues. Local property values and the condition of your home will give an estimated re-sale value for your house. The amount that you can borrow is based upon the estimated value of your home.
Since private mortgage lenders main criteria is the equity in your home, other factors that a bank may want are not as important. Banks want a high credit score and provable income before they will grant a loan. Private lenders will ask about income and your credit score but even if you have a bad credit score or low income you may still qualify for the loan.
Private lenders will ask what the funds will be used for? Many people are doing repairs to enchance the value of their property. From a private lenders point of view any time you upgrade your property it makes your property more valuable and therefore increases the equity in the property, which is exactly what private lenders like.
Private Mortgage Interest Rates
Private lender do charge a higher interest rate than banks. The interest rate can vary from 7.99% up to 15.0% depending on the level of risk on the mortgage. First mortgages have a lower risk and therefore a lower interest rate, second mortgage are riskier and therefore have a higher interest rate. There may also be a broker fee or lender fee associated with arranging the mortgage. It is best to call us to determine the best mortgage options for your situation.