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

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Jeff Metcalf’s answer
Jeff Metcalf, Agent, Saint Augustine, FL
Sat Sep 8, 2012
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.

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Stephen McRo…, Mortgage Broker Or Lender, Tampa, FL
Thu Sep 6, 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: http://www.pro-option.com

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

Prior Service U.S. Marine Corps
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