What Arizona Hard Money Lenders Consider
If you are looking for a quick and easy loan to purchase a home or avoid foreclosure, an Arizona hard money lender
could be useful to you. Hard money loans are equity-based, so they don’t depend on your credit, your pay stubs, or any of your financial information. So, you’re probably wondering what exactly Arizona hard money lenders do
base their decision on. Listed below are a few of the things they take into consideration:
ARIZONA HARD MONEY LENDERS’ CONSIDERATIONS
First, the condition of the property. Is it beautiful? A dump? Or maybe somewhere in between. The better the condition of the property, the more it is worth. Obviously. If you are seeking a hard money loan, try to choose a property that is in good or fair condition.
Location, location, location. Arizona hard money lenders almost always consider the location of the home and factor it into the value.
If you are looking for a fix-and-flip loan for a project, can you complete it? You simply cannot borrow a significant amount of money and then not finish the project or use the money properly. Another consideration that comes into play here is the amount of work it will take to finish the project. You don’t want a project that is way too hard to handle and you also don’t want so small that you don’t actually need a hard money loan for. (Remember that hard money loans typically have higher interest rates.)
One of the most important factors is the value of the home going into the project or purchase and the estimated value of the home coming out. If an Arizona hard money lender
can clearly see that the home will increase in value, they are more apt to approve the loan.
A FEW THINGS TO REMEMBER WHEN LOOKING INTO A HARD LOAN ARE TO MAINTAIN PROFESSIONALISM, HAVE A PLAN OF ACTION, AND TAKE THE STEPS NECESSARY TO REPAY THE LOAN. REMEMBER THAT THE INVESTOR IS TAKING A HUGE RISK BY LENDING THEIR MONEY TO A PERSON WITHOUT A PROVEN ABILITY TO PAY. TYPICAL HARD MONEY LOANS RANGE FROM 6-36 MONTHS AND CAN BE APPROVED FOR AN AMOUNT OF UP TO 85% OF THE VALUE OF THE HOME.