For borrowers and mortgage brokers, the chances of needing to deal with private lenders (hard money lenders) at some point during your search for a loan are becoming greater by the day. Unfortunately, outside of real estate professionals that deal with hard money lenders on a regular basis, very few individuals are skilled at communicating and selling these lenders on their credit-worthiness. The result is a bag of mixed responses from private lenders and a lot of frustration on the part of both mortgage brokers and their clients.I strongly suggest you to visit Hard money lender to learn more about this.
-Be Clear With Your Information
Most private lenders are going to require some sort of executive summary from you, which means that you’re going to have to do some amount of explaining as to why you or your client deserves a loan and how the loan structure will provide a win-win scenario for borrower and lender. Not providing information that’s clear and concise can be an absolute deal breaker, especially when the deal is more complicated, as many commercial scenarios are. Information that isn’t specific, is ambiguous, or is directly in conflict with other information that you’re presenting causes a lender to have to ask questions (assuming they don’t just turn you down).
-Check Your Facts
No matter how busy you are, you have to find time to completely understand the loan request that you’re submitting to a hard money lender. If your file gets reviewed and you’re asked follow up questions you’re going to be expected to know the answer to anything basic. If you don’t know the answer already your credibility is going to take a hit. The lender is either going to perceive you to be a “paper pusher” or a disinterested participant. You may not have any real motivation to see the deal through other than for the prospect of a commission. The result will be a whimsical second look at your information that will probably result in a rejection.
-Package and Label
There’s a big difference between handing someone a stack of papers and asking them to read through it and handing them a tightly bound file with labeled tabs that allow them to easily access the information that they’re interested in. If you tend to do the former, you’re greatly decreasing your chances of success with private lenders. Nobody wants to sort through information, they want to have it presented to them. Consistently packaging and labeling your information in a professional manner goes a long way in determining how you, your borrower and your loan request are received.
-Don’t Info Dump
Private lenders aren’t banks, so the information that they require you to submit is going to change from firm to firm. While many basic items may be similar, every lender will have a different flavor that they like. If you simply fire around the same information to a list of private lenders, most of them will receive it and immediately think that you didn’t both to take the time to look at their loan submission criteria. They’ll wonder if you’re lazy, if you’re throwing things around hoping that they’ll stick somewhere, or if you just weren’t intelligent enough to understand what information it was that they typically request.
-For Goodness Sake, Type It
Deals are overlooked, passed on, put on the bottom of the pile and rejected by private lenders every day simply because they don’t want to bother to try to read borrowers’ or brokers’ handwriting. We’re in the year 2011 and Americans are starting to talk about living on Mars by the year 2030 – it’s about time to learn how to type and use the computer. Not all mortgage technology is necessary, but simple word processing is. If you provide handwritten information to a private lender it’s very likely that they’re not going to take you seriously. It’s a harsh reality, but it’s time to make the change if you haven’t already.