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Three Questions to Ask Hard Money Lenders in NJ before Taking a Loan

People usually look for short term loan lenders to take advantage of an investment quickly. There are many different reasons why the money will be needed, but there are things you will want to know before you take out a loan. With the overwhelming questions, you can ask your lenders, you may not get the right answers. However, there are three important questions you will want to ask about Hard Money Lenders in NJ.

What do I need to receive a loan?

This can be a heavy-handed question with plenty of answers, but this is definitely one that needs to be answered. You’ll first want to know your credit score; this will have a small part in your loan acceptance or not. If your credit score is low, lenders could reject your application, therefore make sure you know approximately what your credit score is. Lucky for those with tarnished credit, Most of the time a hard money loan is based heavily on the value of the property under consideration and not so much on the credit of the applicant.

You will also need to state your income—and provide proof. Remember, you will need to pay back your loan and lenders will want to make sure you have the ability to pay it off. Companies, in some instances, will ask you to provide them with bank statements and tax returns in order to see how many assets you have, in the event you can’t pay your loan back and they will have to take some items to pay your loan back.

Before contacting Hard Money Lenders in NJ, you want to make sure that you have a plan in place when it comes to the repayment of your loan. It’s hard to be this forward thinking when you are in a bad financial situation.

What are the fees and rates I should know about?

There will be various fees you may have to pay when you apply for a loan. There are sometimes application fees, pre-payment fees, and late fees you will need to know about so you can calculate payment of the loan when the time comes. You can be charged for paying too early as well as paying too late.
In your contract, there will be a section concerning your interest rate, also known as the annual percentage rate, but not always. There will be interest rates attached to the amount you wish to take out. The higher the rate, the more you will have to pay. So before you take out the loan, understand the interest rates of the company from whom you are taking the loan.

Are there limitations on what I can spend my money on?

There are some loans that have certain restrictions on them. For short-term loans, if they are personal, you can use the money on whatever you wish. However, other loans, such as student loans or mortgages, there are some restrictions. Definitely speak with a lender and know your limitations.

Although there are many questions you can ask your lender, these are the three major questions you need to ask your lender before taking out the loan. Be sure you have all the information and are financially ready to do so.

Neal Business Funding is a leading hard money lender in NJ.

Neal Business Funding
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