{"id":3783,"date":"2023-08-11T21:38:20","date_gmt":"2023-08-11T21:38:20","guid":{"rendered":"https:\/\/www.coastalcapital.com\/?p=3783"},"modified":"2023-08-16T15:48:28","modified_gmt":"2023-08-16T15:48:28","slug":"why-hard-money-loans-close-faster-than-other-loans","status":"publish","type":"post","link":"https:\/\/www.coastalcapital.com\/why-hard-money-loans-close-faster-than-other-loans\/","title":{"rendered":"Why Hard Money Loans Close Faster Than Other Loans\ufffc"},"content":{"rendered":"\t\t
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Traditional banking institutions might require weeks to approve and distribute your loan, which can be problematic if your project is time-sensitive. To circumvent unnecessary delays that can hinder your project or prolong your acquisition process, consider partnering with private money lenders. At Val-Chris Investments, we are committed to facilitating seamless and prompt transactions that help bring your vision to life. Below, we’ve outlined the reasons why hard money loans are typically settled more quickly than other types of loans:<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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1. Less Bureaucracy: <\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Traditional lenders like banks have to adhere to strict regulations and standardized underwriting processes. Hard money lenders are typically private lenders, so they have more flexibility and can move through the approval process more quickly.<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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2. Less Documentation: <\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Hard money lenders usually don’t require as much documentation as traditional lenders. They’re primarily interested in the value of the property that will serve as collateral for the loan, so they may not need to review as many financial documents, such as tax returns, pay stubs, or bank statements.<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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3. Creditworthiness is Less Important: <\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Because the loan is primarily based on the value of the collateral, hard money lenders are less concerned with the borrower’s credit score. This speeds up the process as thorough credit checks are usually not required.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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4. Direct Access to Decision-Makers: <\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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In traditional lending institutions, there are usually several layers of approval required for a loan. With hard money lenders, you’re often working directly with the decision-makers, which can speed up the process.<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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5. Specialization in Real Estate: <\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Many hard money lenders specialize in real estate loans and are comfortable dealing with properties that need to be rehabbed, or borrowers who plan to quickly sell the property. Their understanding of the market can expedite the process.<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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6. Pre-Approval: <\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Hard money lenders often offer pre-approvals for their loans, which can greatly speed up the funding process once a specific property has been identified.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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However, while hard money loans can close more quickly, they often come with higher interest rates and fees than traditional loans. Borrowers should weigh these costs against the benefits of a quicker closing.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

Traditional banking institutions might require weeks to approve and distribute your loan, which can be problematic if your project is time-sensitive. To circumvent unnecessary delays that can hinder your project or prolong your acquisition process, consider partnering with private money lenders. At Val-Chris Investments, we are committed to facilitating seamless and prompt transactions that help […]<\/p>\n","protected":false},"author":1,"featured_media":3785,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"yoast_head":"\nWhy Hard Money Loans Close Faster Than Other Loans\ufffc - Coastal Capital<\/title>\n<link rel=\"canonical\" href=\"https:\/\/www.coastalcapital.com\/why-hard-money-loans-close-faster-than-other-loans\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Hard Money Loans Close Faster Than Other Loans\ufffc - Coastal Capital\" \/>\n<meta property=\"og:description\" content=\"Traditional banking institutions might require weeks to approve and distribute your loan, which can be problematic if your project is time-sensitive. To circumvent unnecessary delays that can hinder your project or prolong your acquisition process, consider partnering with private money lenders. 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