You may not believe this, but hard money lenders in PA want exactly the same thing you are after – an opportunity to invest at a great return. Bear in mind that they are investing not only their money, but also their time and they want a good return and a safe investment for their money.
A hard money lender has to make consideration as to whether your case is worth their while and this requires information to aid them in making a positive decision.
What Do Hard Money Lenders in PA Require
Your credit rating is generally not the main issue when you deal with hard money lenders. They do however need to know that the asset is going to have sufficient value to cover their loan. To prove to them that you intend repaying your loan in time, it is a good idea to take your bank statements for at least six months, W-2s for a couple of years as well as information regarding any collateral that you intend offering.
Since the loan will bebased on asset value, the hard money lender will employ third party property appraisers to value the property. They may even undertake a personal on-site visit. The reason for this is that they need to know that if you default, they will be able to liquidate that asset as quickly as possible and recoup their loan amount.
You must ensure that there are no other loans linked to the property in question. Hard money lenders in PA need to be the first lien on the books of the property. If there are any other loans attached to the property, it will have to be settled in full before you can draw your funds from your hard loan. To set their minds at ease and ensure that you are offered a loan quickly, you should endeavor to keep good communication channels open.