There are multiple methods you can go about receiving funding for your next real estate investment. The most common options you will likely be deciding between are private lenders and bank lenders. Both of these choices are quite popular due to the unique advantages attached to each, and our goal is to help you make the best choice for your needs!
Choosing a Bank Lender
Bank lenders are a common choice for those with a straightforward property to finance. When the property in question is simple, buyers can take advantage of the perks that bank lenders offer. Specifically, banks often offer competitive interest rates that some private alternatives cannot match, keeping more money in your wallet.
Choosing a Private Lender
If time is a deciding factor for you, a private loan will likely be the best choice. Generally, private lenders can close loans much faster than banks. This is mainly because private lenders are subject to far less government regulation. Unless your investment is effortless and straightforward, choosing a bank may lead to delays or even rejection. While private lenders must still adhere to government regulations, they are freer to take a ‘common sense’ approach to approve loans. If your situation is complicated, private lenders can be flexible and use best judgment and creativity to create terms that work for you. All of this work can be done in a fraction of the time it takes banks.
As a bonus, when you choose a private lender, you’ll have an experienced team to create terms that suit you and offer expert advice relevant to your situation. Bank lenders, on the other hand, solely exist to maximize their revenue and may not be able to provide the advice you need to make the most informed financial decisions possible.
Clearview Realty Can Help You Secure the Best Mortgage for Your Needs
Clearview Realty helps home buyers in Colorado, Florida and California understand the different types of mortgages that are available and provides loans to help people achieve the dream of homeownership. Since the specifics of which mortgage to choose is dependent on a variety of factors, we encourage you to call us for more information and find out which is right for you. Our number is (720) 217-5731, or you can send us a message.