There are different types of mortgages for potential homeowners, and each person has to choose the type of mortgage that is going to be best for them. One type of mortgage available to potential homeowners is a private mortgage. It’s not as common as one coming from a big bank, but it’s a valid option for many people trying to buy a home.

Here are five reasons why people choose a private mortgage over a conventional one. 

Little, to no, down payment

All big banks will require homeowners to have some form of down payment for financing their home, as none will finance it 100%. With private mortgages, though, there is a smaller down payment needed and some private lenders may even finance the purchase 100% so homeowners may not need any type of down payment. 

Easier to qualify 

Potential home buyers may find out that they have a lower than desirable credit score when they go to apply for a mortgage. This can result in being denied financing from traditional banks. Private mortgage lenders, though, often have lower requirements for lending and do not require the same credit scores that other banks do. This can help those with a poor credit history get started on home ownership, and they may qualify for better rates with history of payments. 

Shorter Approval Time

When it comes to the underwriting of a mortgage, it can take some time to get the approval back. Sometimes homeowners don’t have the time it takes because their offer is going to expire, or they need a quick closing. Private mortgages have a much shorter approval time than traditional mortgages, and this can be very attractive for some home buyers. 

Lower Payments

In some cases, private mortgage lenders will offer different terms on a mortgage like interest only payments. This can help potential homeowners to get into a home for their family with an affordable payment schedule. When possible, they can increase their payments a little at a time to help them pay down the principal amount. 

Flexible Terms

Borrowing from a traditional bank means you need to follow their schedule and go with their rules of lending. When it comes to private lenders, they have the ability to define the terms of lending as they see fit. 

This can include only locking in for two years or other refinancing opportunities. You can also work with a private lender if there are certain terms you want in your financing that other lenders were not willing to work with. ‘

Private mortgages are sometimes looked at as a last resort type of mortgage, but they don’t have to be. Many people are choosing to finance a home on their own terms and private mortgages can help them do that. Private lenders work with people where they are at so that more families can get into the right home for them and start building equity. 

Contact Sure Loan For You Today

If you have questions about a private mortgage in Brampton and if it’s right for you, contact us today to discuss your options. 

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