How to Get Hard Money Loans in Dallas Fort Worth, Texas with Bad Credit?
Admin - Aug 31, 2016
Private Hard Money lenders fund your loans more on the basis of your property value rather than your credit worthiness. Therefore, you must provide the investor all the necessary documents regarding architectural plans, construction budgets and bid sheets for remodeling and renovations so that a lender can estimate your property value easily.
You can go one step further by giving your lender a CMA with the details of neighborhood value, rates of the similar properties, and growth rate of this area. This is what a savvy real estate investor does to impress the lender!
As an added bonus, your experience in successful real estate projects is always counted. As a result, the lender may approve your loan on the same day of application!
Give Explanation About Your Credit Problems:
Getting a hard money loan with bad credit score is easy as hard money lenders are not particular about this. However, your dramatically poor credit score may be a red flag. Since lenders are expected to be understanding when compared to their institutional counterparts, your explanation can give them a peace of mind.
If you have bad credit just because of the circumstances and you explain the reasons for that (assure them it isn’t likely to happen again), chances are the lender may show some leniency.
Show Them You’re Serious about Project’s Success:
Besides your property value, a lender is likely to fund you immediately when he finds that you’re serious about your real estate project.
Here the tips to do that…
- Invest your money towards the project, apart from the funded amount.
- Explain your exit strategy about both installments and the final payoff.
- Stay in touch with them. Answer their calls and emails quickly and go for the appointment whenever they want, if possible.
- Get ready with your all documents and plans.
- When possible get pre-approved. This will greatly speed up the process if you are already approved and it’s just about the due diligence on the property itself.
So, these are the things a real estate investor can do to get his hard money loan approved earlier in emergency.