How to deal with lenders
If you happen to be a frequent borrower, there is a chance that you will encounter small and independent private lenders. Unfortunately, very few individuals are skilled at communicating and selling these lenders on their credit-worthiness. And the result is different responses from private lenders and a lot of frustration on the part of both lenders and borrowers.
So why is it so difficult to communicate with money lenders? Some of them are hard to deal with since almost none of them are the same. What works for one lender won’t necessarily work for another, and they interpret information in a lot of different ways. But what if you could greatly increase the odds that your loan request will not only get a favourable look from almost all hard money lenders but also increase your overall odds of getting an approval?
You have the power to determine how private lenders are going to perceive you as a borrower, whether they consider you to be “a hassle to deal with,” or if your files come across with promise and potential. The trick is to know how to communicate with private lenders, and while some of these tips may seem trivial, not accounting for them can be the difference between an approval and a rejection.
The most important requirement is to be clear with your information. Most private lenders are going to require a brief summary from you, which means that you’re going to explain in full details to why you deserve a loan and how the loan structure will provide a positive scenario for borrower and lender. If you do not provide clear information, you will probably be declined.
And when your loan gets finally reviewed and you’re asked to follow up questions you’re going to be expected to know the answer to anything basic. Your credibility is important and the lender is either going to perceive you to be a disinterested borrower. You may not have any real motivation to see the deal through other than for the prospect of a commission. The result will probably result in a rejection. Remember, lenders, accept files from brokers because they provide a valuable service: an initial screening of borrowers’ files that categorizes them as either having a potential to be funded or not worth the time.