Things to Look for in a Private Lender/Non-Bank Lendersupport
Considering a private lender to grow your investment portfolio may be a strategic way to access funds fast. If you do decide to seek a loan from a private lender, you will need to research carefully and ultimately, narrow down your options to ensure you are getting the best interest rate and quickest settlement time.
By choosing a non-bank lender, you are looking to solve borrower issues such as time constraints and low credit score. Therefore, a private lender should be able to provide solutions to the common problems that property investors may come across.
What Factors You Should Consider When Researching Private Lenders
The Rate of Settlement
One of the key benefits of choosing a non-bank lender is the speed at which they settle. A bank may take weeks to consider your loan whereas some private lenders, such as Pacific 8, can settle within 3 days. The faster you settle and get access to funds, the quicker you can start to invest.
You should be able to have clear communication with your chosen private mortgage lender and they should be able to tailor their services to work around your unique case. They should be able to navigate and willingly work with you to achieve the final result.
It may almost seem like an obvious factor but there are some private lenders that do not operate under an AFS License. Choosing an AFS licensed private mortgage lender ensures that the company is competent and compliant to offer financial services. Additionally, it reinforces the company acquires sufficient funds and financial resources to offer loans.
Though the company may seem reliable on paper, it is important that they are able to demonstrate their abilities with previous clients and their unique cases. A sound private mortgage lender should be able to give an example of the loan amount, loan term and possible turn-around time with respect to the confidentiality of the client.
Competitive Interest Rates
When researching and comparing private mortgage lenders, consider if their interest rates are reasonable and competitive. Additionally, they should be transparent with their process when you request a loan and communicate any additional/hidden fees.
Strong Understanding & Experience
A private lender should be able to back their services with years of experience within the property finance sector. This not only proves they are established, but the advice that they offer will be trustworthy and reliable.
Pacific 8 Can Help with Your Private Mortgage Loan Today
At Pacific 8, we have settled over $500 Million and have a strong portfolio of satisfied clients. We offer competitive starting interest rates and offer loan amounts of up to $25 Million. Most importantly, we operate under an AFSL and is controlled by a responsible manager. We streamline our process for quick approvals and straight-forward deals. If you are after a private mortgage or first registered mortgage from an experienced and established private mortgage lender, contact Pacific 8 today for a consultation.