Alternative Loan Options for Residential Real Estate Investment
After the housing market crash in the years 2008 and 2009, it seems inappropriate to get to the bank anymore to get a mortgage loan. The increased layers of security they have put in to avoid a new crash don’t make the task impossible. But it makes it very difficult and time-consuming for people looking to get a good deal on a property. As you go through a pre-approval process, the property could be sold or the price could change, setting you back to square zero and having to repeat the process all over again.
The great thing about this country is that people with the capital have set up shops with some great alternative options to finance your house. New City Financial is among those operators looking to help people get the best business deal for their money.
With the new players in the field and the use of advanced technology as well as the right algorithm, you could get approval on a mortgage loan for the house of your dreams in less than 8 minutes. Let’s take a look at how this works:
Online Mortgage Lenders
To seek opportunities during a crisis, there is a new generation of startups and established companies offering housing loans that streamline the process of approval from months to minutes. The real-time approval so far is not the only advantage. Their approval rate is pretty good too as long as you meet their conditions and provide sincere information. Since most of these companies do not work the same way banks do, they’ll comply with the American justice system if a lender fails to make payments.
Marketplace and Brokers
The most popular choice for career development in the mortgage market is to work as the middleman. A broker is somebody who will apply an algorithm to your application and will come back to you with the services of a group of lenders based on your payment capabilities. After you make your choice, you’ll be dealing with the lender while the broker will remain with you through the whole process, offering advice on how to get the best deal.
Since the big banks now shy away from lending money to regular people unless they are highly qualified, small time businesses are taking over and following the same pattern that led to the financial crisis of 2008-2009. These operators are working with no regulations and they don’t check the background of most of their clients, either because they don’t have the resources or they have an interest in getting their business rolling. They also usually lack online presence since they work locally on their established communities.