Lahn Singlet…, Other/Just Looking in Jacksonville, FL

I would like to know if I should be pre-approved for a hard money or private loan prior to searching for a property, or vice-versa?

Asked by Lahn Singletary, Jacksonville, FL Thu Sep 6, 2012

Help the community by answering this question:


It depends on the type of property you're interested in. If you're looking at condos right now, it would help to get pre-approved for a hard money loan ahead of time so you know what price range you can be looking in. These types usually require higher downpayments and have higher interest rates but have a higher likelihood of making it to closing since most condos aren't backed by Fannie or Freddie. For condos, though, there are a lot of variables (regarding the HOA) that can still kill the deal after you have a contract so keep this in mind,

If you're looking at a house, I would contact a regular mortgage broker or your own bank. Chances are you could qualify for a conventional loan (non-hard money) and save yourself some cash up front AND over time.

Just a REALTORS(R) opinion based on my experiences with customers in the current market. Good luck to you in the process!

Jeff Metcalf, REALTOR(R)
Watson Realty Corp.
0 votes Thank Flag Link Sat Sep 8, 2012

Mortgage Broker Responds:

Hard Money is a different animal, there is not an electronic approval process. Also, these private investors are often very wealthy people who don't want to dive into a deal without an actual property.

They don't want to look at "MIND DEALS" so generally the best you can do is have a Mortgage Broker review your application and credit in advance, give you a pre-qulification letter and then find and contact on a property.

I offer these kind of loans, but often I can qualify borrowers for Bank/Portfolio programs with less down and better rates v, Hard Money.

See a list of some of the strongest programs for FL here:

Steve McRory
Pro Option Mortgage/ Florida
Ph: 888 662 4404

Prior Service U.S. Marine Corps
0 votes Thank Flag Link Thu Sep 6, 2012
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