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Aurora Private Mortgages
What are private mortgages?Aurora Private Mortgages is simply an alternative way for people who wish to buy a home but do not ‘fit’ the typical (and often strict) criteria that is mandatory by regular banks and credit unions. There are a few different reasons why an individual may not get approved for a mortgage loan from a regular banking institution (it could be a lower credit rating, income fluctuations, poor payment history with other creditors, there is not a large down payment available or, necessary collateral to put against the mortgage loan). Lenders who deal in Private Mortgages are prepared to take more risks with sizeable amounts for loans, like the mortgage loans required to purchase a dwelling and property if applicable. These specialized, private lenders can often work with individuals to ‘make it happen’, if the individual or individuals meet the criteria that these lenders must adhere to.
How do private mortgages work?The lenders that work with and offer Private Mortgages (small business owners, private investors, private corporations & wealthy individuals) have different guidelines then regular banking institutions and can therefore be slightly less rigid with the approval of mortgage loans. Firstly, Aurora Private Mortgages lenders are not regulated by the government like regular banks are because regular banks get their funds from the government, whereas private lenders obtain funding through private entities. Secondly, Private Mortgages lenders will lean heavily on the value of the home & property as security against the mortgage loan, with stipulations of legally seizing the home & property if the mortgage loan is defaulted on in any way (placing a lien on the home immediately). Private Mortgages lenders require a hefty down payment against the mortgage loan as well, so unless an individual can put up at least 20% of the home & properties value as a down payment, there is a slimmer chance of approval. People should also be aware that when considering Aurora Private Mortgages, that the interest rate will most likely be higher than what would be offered at a regular bank.
When is taking out a private mortgage helpful in your financial strategy?Establishing Private Mortgages loans with private lenders is the best step forward for people that are in a comfortable position to take on a mortgage loan financially, have worked diligently on minimizing all debts to raise a credit rating and being armed with a sizeable down payment. The gainful impact is the resulting approval for a Private Mortgages loan to purchase a new home! People that have less than perfect financial backgrounds should not be deterred from buying a new home, it is a big financial investment, but with focused attention financially towards the home, it is going to provide that sense of home ownership that individuals can be proud of!
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