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When homebuyers are searching for a home loan, deciding between a private lender and a bank can pose a common dilemma. If you’re unsure which option to choose, this article will outline some of the differences to assist you in making the right decision for your circumstances. Unlike traditional home loans, a home loan from LendEase offers benefits that banks cannot match.
Getting approved by a private lender is easier
Your credit score may not be in great shape, and let’s be honest, it’s not easy to improve. Recovering from a rough patch in your credit history can take years. This can present a significant obstacle when dealing with a traditional bank.
With a private lender, your credit rating and history may not carry as much weight, as private lenders can secure collateral in alternative ways. Private lenders are more flexible in selecting borrowers, often willing to take on more risk. Regardless of your credit score, a private lender may offer you a better chance of securing a home loan.
Building a financial relationship
Seeking private loans is an excellent way to establish a financial partnership with a home loan provider like LendEase. Meeting your financial obligations, making timely payments, and demonstrating your reliability as a borrower will prepare you for a partnership with a private lender that could lead to numerous investment opportunities.
Getting approved by a private lender is easier
Private lenders, such as LendEase, approach the application process differently from traditional banks. They may not focus as much on your credit, employment history, or investment portfolio. Instead, private lending centers around risk management, and at LendEase, we have some of the best risk managers and consultants in the business. Private loan firms are equipped to give you a better chance at securing a home loan.
Larger down payment
Many mortgage offers require a minimum down payment of 5% of the property’s full price. Traditional banks often prefer a down payment of at least 20% to offer better loan terms.
With a private lending company like LendEase, you may have the opportunity to receive 100% of the property’s purchase price and only need to pay the origination fee and interest until the loan is fully paid off.
In summary, when seeking a mortgage loan, private loans can provide a significant advantage in terms of both timing and financing amount. If you have any further questions about your mortgage loan, feel free to contact one of our mortgage loan officers by phone or email.
