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What Are Private Mortgages?

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TERMINOLOGY

Private mortgages are a type of loan provided by individual lenders. Here are the basics of private mortgages and how they can be beneficial.

Private Mortgages

These types of loans are offered by individuals that have excess money to lend. With this type of loan, you are not going to go through the normal underwriting process. You will have to fill out a loan application, but an individual lender is going to make a decision as to whether she should extend a loan to you. In most cases, these loans are going to have a higher interest rate than what you could get from a traditional mortgage lender.

Advantages

The big advantage of getting a private mortgage is that you are going to be able to cut down the amount of time that it takes to get approved. Your application is not going to have to go through the normal multiple levels of approval. Because of this, you could potentially get the money that you need for a home purchase in a few days instead of having to wait weeks or months. Many people prefer this flexibility instead of having to adhere to traditional lending standards.