DIFFERENCE BETWEEN PRIVATE MONEY LENDERS AND TRADITIONAL FINANCIAL INSTITUTIONS

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Difference Between Private Money Lenders and
Traditional Financial Institutions
Investor Lending

• private money lenders Dallas

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One of the major differences between a hard money
loan and a normal bank loan is the lender. That
means a private lender will always provide you
with hard money loans. The lender can be a person
or a company.
You may already know that these loans are mostly
taken for non-owner-occupied real estate.
Therefore, they are not managed like consumer
mortgages. In simple words, hard money lenders
can decide the interest rates and fees they are
going to charge and escape from the terms and
conditions. Of course, that is not the case with
traditional loans.
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Moreover, the following are the factors that make
these two loans differ from one another.

• Traditional financial institutions follow the
  Truth in Lending Act (TILA) and the Real Estate
  Settlement Procedures Act (RESPA).
• Federally insured banks are governed by the
  Federal Deposit Insurance Corporation (FDIC). On
  the contrary, private money lenders dont have to
  follow any regulations.
• A bank loan depends on the credit score and the
  annual income of the borrower. No such thing is
  required by private lenders.
• The loan approval procedure is different.
• Private money lenders allow loans a lot faster
  than the typical financial institutions.

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A hard money loan has far fewer requirements than
a bank loan. Thats why you get to secure a
property without a problem. Similarly, private
money lenders Dallas ensures fast approval and
have rapid funding timelines.
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In addition to that, private money lenders Dallas
have the best advisors. So, you can communicate
with them to figure out if you are on the right
track. From commercial to residential properties,
the conditions of getting the loan are similar.
Hence, to make greater profits in the real estate
market, you must consider this option.
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Investor Lending
Address
11200 Westheimer, Suite 150, Houston TX 77042
Phone
713-651-9500
Time
24/7
Website
https//investorlending.com/