Category Archives for Private Mortgage Lender
Private Mortgage Timelines
“Private Mortgage Commitments Can Have Very Short Shelf Lives”
Private mortgage lending can be very different from bank or institutional mortgage lending in certain ways.
One of those ways is with how mortgage commitments are handled and how they can exit for very short periods of time with private lenders compared to banks.
With private lending, a mortgage commitment typically will be issued for a period of one week. If at the end of the one week period, there is no guarantee that there will be any sort of extension whereas with a bank either an extension is granted or a new commitment issued if there is a change in rates and/or terms.
But banks and institutional lenders tend to have a large source of funds to deal with at any one time. Private lenders in most cases are placing their own money, so the goal when they have available funds is to place them as quickly as possible as they’re only making bank interest until they have a mortgage to invest in.
As a result, many private lenders are constantly in and out of the market in accordance with money they have available to fund financing requests.
So when a private lender provides a commitment to fund a mortgage, they are expecting it to be accepted and the process to continue to closing.
If you aren’t prepared to accept in the time provided you run the risk in the weeks or months ahead that the lender is either no longer interested in funding your requirements, or they don’t have any available funds or sufficient funds to fund your deal at a different point in time.
This is an important aspect of working with private lenders that should always be considered so that you don’t lose out on an acceptable offer due to timing.
In the bank or institutional mortgage financing world, individuals are used to shopping around the market for the best rates and terms and can take weeks and months going through this process.
With private mortgage lending, the shopping and decision making period is much shorter in nature in terms of what will remain available to you once offered.
The major risk here is that you return in the future to a private lender who previously offered you a mortgage and now is not prepared to reissue you a new commitment for whatever reason. If you can easily replace that offer with a similar or better offer, then there is no issue. But if you’re now pressed for time, you may end up having to settle for an inferior offer, or worse yet, not find suitable funding at all in the time you have to work with.
The key to working with private money and getting working to your advantage is through utilizing the services of a private mortgage broker who can not only help you locate and secure relevant sources of private mortgage lending, but also guide you through the decision making process when offers and commitments are being extended to you.
Click Here To Speak Directly To Private Mortgage Broker Joe Walsh
Toronto Private Mortgage Lenders
“We Provide Direct Access To Toronto Private Mortgage Lenders”
The Toronto private mortgage lenders we work with provide mortgage financing for a broad array of real estate including residential, commercial, and industrial properties as well as construction for any of these property types.
Because of its sheer size, Toronto is one of the largest centers for private money in all of Canada. And while most of the available funding is only available for City of Toronto based properties, we do work with a number of lenders that will finance deals throughout the Greater Toronto Area as well as other areas of the province of Ontario.
In most cases, private mortgage lenders are very regional and have very specific areas of interest. So When there are a large number of lenders servicing a given area, there is also going to be a higher probability that a private lender will be available to fund your requirements and that there will be higher competition for your business, which can lead to better rates in some situations.
Outside of mortgage investment corporations, most Toronto private mortgage lenders find their deals through mortgage brokers that work in the Toronto Area. In fact, in most cases, private lenders do not work directly with the public or business community at all and instead to have their deals sourced by individual mortgage brokers or the mortgage broker network at large.
So in order to locate a private mortgage lender in Toronto, you would be well advised to first seek out an experienced Toronto area mortgage broker that has direct access to private lenders and as well as a track record of successfully completed deals.
If you are in need of a Toronto private mortgage or would like to know more about your options, I suggest that you give me a call so we can go over your requirements together and discuss the different funding options that are likely going to be available to you in the market place.
Its not uncommon that we can get a private mortgage approved the same day or within a couple of business days, with funding to follow shortly there after.
Private Mortgage Offers
“Private Mortgage Offers Can Have A Very Limited Shelf Life”
One of the keys to getting a private mortgage offer in place is accepting it within the time period provided by the lender which is typically one week.
Unlike banks or institutional lenders that are used to providing competitive offers for real estate mortgage applications, not having them accepted, and seeing the borrower circle back to discuss an offer weeks or months later, private lenders work quite a bit differently.
First of all, you need to understand that a private lender is always interested in getting available cash out into mortgages as that’s how they make their money. As soon as money becomes available from mortgages that come due or from other sources, the lender’s goal is to start assessing relevant deals and accept deals they are prepared to fund.
If an offer for financing is not accepted within the time period provide, the private money lender may very well fund another deal with the same available funds. So if you sit on an offer for financing for an extended period of time, don’t be surprised if the lender cannot complete the transaction weeks or months later as the money that was available has been placed and at the point in time when you circle back to the lender, they may not have available funds or are no longer interested in your deal.
In this regard, private lenders can continuously be in and out of available funds which is one of the more challenging aspects of locating and securing private funds at times.
Being that its a competitive market, you may not feel that this is a big deal, but it can be for a few different reasons.
First, private lenders all price their money differently. So if you miss out on a very competitive offer, there is no guarantee you will be able to find a similar offer.
Second, if you’re shopping around too long and start running out of time, a private mortgage offer you miss out on may not be so easy to replace, causing you to take what you can find in the time you have to work with even if it doesn’t really fit all your requirements or rate expectations.
The point here is that private lenders like to move quickly with people who are serious about taking action right away.
The longer you take to make a borrowing decision, the less likely options will remain available to you either due to a lack of available funds, or a loss of interest in your deal.
Just remember that while there are lots of private lenders around, they aren’t always that easy to locate and based on the type of property you’re trying to leverage and your location, there can be a limited market at times for a given offer.
Private Mortgage Lender
“We Represent Private Mortgage Lenders Looking For Lending Opportunities”
I work directly with a number of private mortgage lenders that have money to put into private mortgages both here in Toronto, the Greater Toronto Area, and Southwestern Ontario.
While private mortgage lending in general is on the rise, it still can be difficult to locate a private lender that will fund your particular requirements.
There are a number of reasons for this which we will now explore further.
First of all, private mortgage lenders tend to be very regional in terms of where they are prepared to lend their money. In many cases, individual private lenders will actually want to be able to drive to the property being offered for mortgage and inspect and/or appraise it himself or herself.
In order to accomplish this, the property has to be rather close to where the private lender is located.
Being close by has a number of advantages including having a good working knowledge of the local market as well as being able to visit the property at any time if required for any reason.
Second, private money lenders will all have their own property targets as well as rate and fee expectation. Unlike a bank that has a much larger and broader portfolio, many private lenders are very narrow in terms of the types of properties they are prepared to finance, the amount of money they are prepared to lend in terms of total dollars invested in a mortgage, and the terms and conditions they place on their funding.
As a result, its not very hard to spend a lot of time talking to private lenders that are not a good fit for your requirements.
Third, many private lenders don’t advertise their services and in fact prefer not to meet with potential borrowers to process their applications.
In order to gain access to the largest available pool of private lending, you’re going to have to work through a mortgage broker or the mortgage broker network as this is the preferred marketing channel of many private lenders.
Fourth, and perhaps most important, most mortgage brokers have very little direct access to individual private lenders and mostly indirect access through other mortgage brokers or the mortgage broker network.
By not working with someone with direct private lender access as well as a solid understanding of a given private lender’s requirements and areas of interest, a tremendous amount of time can be wasted trying to locate a source of private lending that is meets your requirements in the time you have to work with.
If you’re in need of private mortgage financing and are trying to locate and secure mortgage funding from a private mortgage lender, then I suggest that you give me a call so I can quickly assess your situation and provide relevant private mortgage options for your immediate consideration.