Traditional money lenders require a good credit score, income, and other factors to pass loans to an individual. Conversely, hard money lenders in San Diego offer loans on the secured collateral of an individual. With hard money, people don’t need to have a good credit score, and this alternative is quite convenient and easier than traditional loans. Furthermore, there’s no need to fit on the qualification scale to a loan amount; few documents are required to pass the loan.
Below, we discussed the important things about hard money loans along with the required documents to get easy approval of the hard money loans.
What are the types of hard money loans?
Hard money loans are primarily classified into two categories: consumer loans and non-consumer loans that are different from each other. The requirement of the documents depends upon the type of loan you choose.
The loan in which the fund is used for household, family, or personal purposes is called a consumer loan. Alternatively, in non-consumer loans, the purpose is not specified, but the requirement that doesn’t fit under the specific section is known as non-consumer loans. Again, it’s important to note that the classification of a loan is not based on the amount you need or the type of property you secure, but the purpose of the funds defines the type of the loan.
The documentation requirement in consumer loans is more challenging than in non-consumer loans. In a consumer loan, you must submit many documents to hard money lenders in San Diego, whereas a non-consumer loan is much easier and more convenient.
What are the documents required for a hard money loan?
Whether you are seeking a consumer loan or a non-consumer loan, the below-listed documents are required to get your loan approved.
● Application – It’s a piece of paper asked by money lenders where you need to inform purpose, money requirement, income, the collateral, and more. It’s the primary document containing all the basic details of an applicant.
● Mortgage loan disclosure statement– This document is the important one that carries information on the terms and conditions, the lenders’ amount, and the applicant’s pay.
● Equal credit opportunity act and fair lending notice– Under the Consumer Credit Protection Act, lenders must provide these documents ensuring no discrimination against borrowers based on age, race, religion, gender, and more.
● Deed of trust– It’s a type of third-party document in which a third person is enrolled to determine that both parties, lenders, and borrowers, are completing their responsibilities in the right way.
● Hazard insurance disclosure– The document is for the borrower in which they have to describe their roles and responsibilities to maintain the insurance coverage of the property or real estate on which basis they are getting the loan.
● Promissory document– It’s another important document that a borrower needs to sign during the application process. This document carries all the rules that they have signed and promises to pay the loan amount on fix date.
To The Sum Up
It’s not too difficult to obtain hard money loans in San Diego as there are many lenders like Blue Raven Group providing a range of mortgage loans with simple terms and conditions.