Not all financial institutions are created equal. Each one has different criteria to determine whether or not they will lend to a borrow, how much they will lend, and at what interest rate.
Not everyone can get a mortgage through a traditional financial institution; however, this doesn’t mean that your dream of owning a home must be put on hold. Fortunately, there are private lenders for home loans in Chicago that can help prospective homeowners buy a home without going through a bank.
Here’s what you need to borrow from private lenders for home loans in Chicago
Private lenders for home loans in Chicago IL come in handy because they are ready to negotiate with anyone, so long as some specific qualifications are met.
In order for anyone to acquire a mortgage loan from private lenders, they must ensure the borrower has valid income sources and are ready to adhere to the quoted interest rates.
Unlike most financial institutions and traditional lenders, private lenders will be very willing to make you a deal as long as you have some proof of income and a desire to have a mortgage.
Other key factors about obtaining a home loan from a private lender
Every private lender in Chicago is different. Here are some other must-know key factors to obtain a private mortgage home loan:
- The agreement should not be verbal. Everything between the borrower and the lender should be written down and verified. Create an agreement in writing that you both review and sign. That will prevent any confusion, misunderstanding, misinterpretation, or an “I forgot” moment that could dramatically impact you or the lender!
- Clarify taxation: Many people seeking to acquire mortgage loans from private lenders often miss out on understanding the tax implications. Therefore, it can be hard for them to meet the agreed interest rate and payback terms, and they can even expose themselves to hefty fines if they miss a tax payment! Make sure you’re aware of all tax issues while completing the agreement.
- Bring in a professional: Even though you might not be going through a traditional financial institution for your mortgage does not mean you should approach this mortgage haphazardly. Work with an attorney or title company to help create an agreement that works for all parties — these professionals are highly experienced and can ensure that both parties are protected in writing.
Private mortgages provide a powerful way for many prospective homeowners to get a mortgage, even when they may not be able to get one through a traditional financial institution. Contact Chicago Home Buyers at (312) 300-2043 and we can help to answer questions about private lender home loans (or we can guide you to the people who can help you). Also, for a much faster way of connecting you with a great home loan private lender, please fill in our form so we can help you quickly.