Are Private Lenders In BC Better Than Banks?
To approve loans, conventional banks and credit unions have stringent lending requirements which they need to maintain. Because of these strict terms and regulations, many borrowers with bad credit, or no proof of income are often turned down for a mortgage. If you do not meet a pre-specified criteria of what constitutes a good mortgage and your credit or income is not at the level for a bank or B-Lender to approve, private mortgage lenders in BC can be a great financing option.
With that in mind, our lenders can be extremely helpful if you’re looking for:
- Bad Credit Mortgages
- Quick Closings
- Unique Situations / Special Circumstances Lending
Unlike traditional mortgages, private lending may approve 1st, 2nd & 3rd mortgage loan applications based on home equity rather than income situation or good credit. Our carefully selected private lenders can even approve mortgage loans up to 75% loan to value in major centers. As well as solving your real estate issues, private mortgages can payout tax arrears and other liens or issues that may prevent banks from approving your application.
Private Lenders BC Approval Process
Getting approved for a private mortgage loan is a lot faster than regular approvals for bank products. When working with our private lenders, approvals can be issued in as little as a few hours of getting an application. Traditional lenders take a longer time to approve you as they usually require more information, like credit rating or how the funds are going to be used.
When working with the right mortgage broker, appraisals generally take 24h to be done but can take up to 1 week to complete depending on your home’s location. Once the appraisal is done and all conditions have been met, our private lenders in BC will instruct their lawyers to draw up the paperwork. Lawyers can usually get this paperwork out to the client’s solicitor (lawyer or notary) within 48hr. Once you get into signing documents the file gets sent back to the lender’s solicitor for registration and release of funds. Every law firm works differently and if time is of great importance please make sure you take special note of this at the beginning of the process.
We also have some private lenders that will fund faster than others. But like with anything in life if you want/need things done faster it can be done but at a higher cost. Generally, the average funding time is between 5 to 10 business days.
Where and What Will Private Lenders Lend On?
Our private mortgage lenders will consider most locations & property types in BC, Canada. Keep in mind the smaller the population base, the lower the loan to value the lender will consider.
We have private lenders that will consider all types of properties including; single-family homes, large or small acreages, condos, townhomes, raw land, serviced land, mobile homes on land & in parks, ALR properties, etc.
Conditions apply so contact us to find out more.