Traditional Lenders
What You Need to Know About Direct Lender Payday Loans
What is a direct lender payday loan? A direct lender payday loan simply means you are getting a payday loan today directly from the lender, without any kind of middle man being involved. What does this mean to you? Hopefully, it means a better interest rate.
When you are dealing with a company that works with various payday loan companies, the rates may be a little higher as they are likely getting paid in some way from these payday companies, which likely means a higher interest rate for the customer. Whenever applying for a payday loan, try to deal with the lender directly, as this will likely save you money on the interest rate and fees.
The application process is a pretty simple one which normally only takes a nominal amount of time to complete. Most direct payday loan lenders don’t require people to have A1 credit, because they are securing their loan with your checking or savings account information. They will usually require that your payment be directly credited from your account at the time it is due.
There are both online direct payday lenders as well as various companies that have local branches you can visit to obtain your payday loan. Many online lenders have a no faxing, no credit check policy which makes it fast and easy to get the loan you need without having to deal with a lot of paperwork. When you visit a payday loan branch office, you may need to provide more information, but it is still an easy process. They will likely want to see some form of ID along with a recent pay stub and will ask for a check which they will hold for repayment of your loan. You will then receive your loan and some of these companies will have cash on hand to give you, while others may have to issue a check you can cash at their local bank. When dealing with an online direct lender, they will deposit the funds directly into your checking or savings account.
Another good point about payday loans in general is that, unlike traditional lenders, there is usually only a $100 minimum loan. Most lending institutions won’t lend anything less than $1000, so payday loans can be of help when $100 or a few hundred dollars will suffice for your needs.The proceeds from your payday loan can be used for whatever purpose you wish. You are not approved based on what the money is for, only on the promise that you will pay it back according to the terms of the loan. Paying the loan back in a timely fashion not only helps your credit, but also can save on what are called “rollover” fees. This simply means that if you have trouble paying back the entire loan when it comes due, you can pay a fee, usually between $15-$25, to keep the loan and pay it back at a later date. Again,dealing with a direct lender will usually result in lower fees than dealing with a company which only acts as a middle man.
Whether applying for your payday loan online or at a local branch, even when dealing with a direct lender, it is best to look around to get the best deal possible. There are many companies that now do these types of loans, so it only makes sense to find the best repayment plan possible before committing to a specific lender.
Tips on Borrowing From Hard Money Lenders
House rehabbers often seek funding from hard money lenders to finance their deals. Also known as private lenders, these financiers make sure that you can proceed with your real estate investing deal even if you are short in personal money. Here are some things you must know if you plan to tap this kind of financing.
Always go for the good deals. If you doubt that you will make a lot of money from a particular rehabbing project, let go of it. There are scores of cheap homes you can buy and rehab out there. This is important because that property will be your collateral when you seek hard money loans. If lenders see the potential of the property you want to flip, then your loan application is likely to be approved. But if they feel that you will not profit from it, they will reject your application.
The amount you will get will depend on the ARV, or after repair value of the property. This is the value of the property after you rehab it. Hard money lenders usually lend between 60% and 70% of the ARV so the higher your after repair value, the bigger the money you will get. You can seek the help of a professional appraiser if you do not have the experience in estimating ARV.
You must learn to find hard money lenders the right way. The most convenient way to search for private lenders is through the Internet. Just type hard money lenders and you will find a lot of them online. You can also try typing rehab hard money, which means that you are looking for hard money financing for a rehabbing project. You can also find private lenders through referrals, the classified ads, and local real estate clubs.
Be prepared to pay a higher interest rate. Private lenders use interest rates that are twice that of traditional lenders impose. Despite this, rehabbers and other real estate investors still prefer using hard money financing because it is more convenient. These kinds of loans are released in just days. Banks and other traditional lenders, meanwhile, usually take a month to process applications, especially those concerning large amounts of money. Applying for hard money financing is easier since borrowers do not have to secure so much financial documents. Remember, hard money lenders care about the deal you are presenting and not about your credit score.
Read and watch more about this kind of financing and other useful information for rehabbers at rehab-real-estate.com today.