Private mortgage lenders can often save the day when a simple mortgage pre-approval proves to be difficult and time-consuming. In light of recent economic fluctuations, traditional lenders are looking for a lot more in a loan applicant and are more stringent in their processes.

Hence, dealing with mammoth financial institutions like banks can be a tedious process that leaves you feeling insignificant. It’s no wonder people are often uncertain of whom to borrow money from. Most individuals are even turned down because they do not have the right credit score or documentation.

Fortunately, there is a better way. There are many benefits of borrowing privately. Below we discuss the top 5 reasons why you should borrow from a private agency:

1) Speed

In many cases people will miss out on possible real estate investments because they are caught up trying to get a pre-approval from the bank. Other financial institutions have long and complicated processes to approve a loan. Private lenders do not have these complicated processes and it is usually easier and faster to borrow money from these businesses instead. Having easy access to a pool of funds will help increase your real estate portfolio. It can also help you with things like home renovations to expand on your current equity.

2) No Credit Checks

Since the initiation of credit, financial institutions have used credit scores to determine how likely it is that they will receive payment on their loans. The process of checking a person’s credit score can be very long. Even worse, it can leave a mark on your credit report. Either way, a credit check can leave a person without a loan or a bad report. According to the Canadian Mortgage Professionals Magazine, a study conducted by the Bank of Montreal revealed that 56% of Canadians have never even checked their credit score. It also disclosed that only 14% check their score annually. By using a private lending agency, people can avoid this check all together.

3) Unlimited Funds

When looking for a pre-approval or loan, people are often limited by the big corporations on the amount they borrow. This limit is determined by their income which again leads to more steps a person must take to get a loan from the banks or MICs. A private institution may not require any income statements and will give you access to unlimited funds. This allows for more cash flow from month to month and can help lift some of the pressure from your capital resources.

4) Control and Flexibility

If you choose to use a private lending agency instead of a big bank or MIC you are ultimately in control. As mentioned, there is no limit to how much you borrow and less administrative time you need to put in to get approved. Of course, you must be able to cover your loan, but flexibility and control is now in your hands. A real estate investor for example can separate themselves within the market. They will present themselves as being adaptable to various projects including growing clients’ portfolios and building equity through renovations.

5) More Affordable

Banks charge a very high and strict interest rate depending on how much a person would like to borrow and their credit score. To gain a pre-approval for any loan, it is easier to set your own terms, discounts and interest strategy with a private agency. This can sometimes be economical than what the big financial institutions can offer you.

Our clients know and realize that we are very efficient. At Xpert Credit Solutions, we offer professional financing services and ask for minimum documentation when issuing a loan. We make decisions fast and provide financial services on very short notice.  Visit our website today to book a complimentary consultation.