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Ajax Private Mortgages
What are private mortgages?There are private organizations out there that deal in Private Mortgages, which is essentially a privately funded mortgage loan. But why would a potential home buyer not deal directly with their bank to obtain a mortgage loan? As many people know first hand, getting approved for a mortgage loan by a bank can be a daunting ordeal, with tight and restrictive criteria that some people just cannot qualify for. This is where Private Mortgages lenders step in and are ready to do their best to make a mortgage loan an obtainable source of funding, for home buyers that would otherwise not be able to financially reach the goal of home ownership. Ajax Private Mortgages lenders know they are taking some element of risk with buyers that do not meet the expectations of regular banks, but they have various means of bypassing some of the ‘burps’ that gets mortgage loan applications denied.
How do private mortgages work?Private Mortgages lenders perform a routine application process obtaining financial background information on the applicants personally and the real estate that has caught their eye. Private Mortgages lenders source their funding from private investors & hard money lenders, so the more value a piece of real estate carries, the more attractive the application is (private investors will use the real estate as partial security against the mortgage loan). The province and location of the real estate is just as important to the investor. Ajax Private Mortgages lenders look for decent credit ratings (it does not have to be spotless, but needs to show a recent, good track record of financial responsibility towards debts), a sizeable down payment (up to 20% of the value of the home if the lender is taking a higher risk) and home buyers should be prepared for a higher interest rating on the mortgage loan, again, to offset the level of risk to the lenders.
When is taking out a private mortgage helpful in your financial strategy?Home ownership is within reach of anyone who can show financial focus on monthly/annual debts and expenses, have saved a substantial down payment and can afford Private Mortgages. Once this minor criterion can be met with ease and the application has been approved, then you are on your way to be a home owner, now THAT is a gainful impact that will resound positively for years to come! A personal victory, that is the feeling home buyers get when they are approved for Private Mortgages! Initially, the mortgage loan may cost more, but the personal gains are priceless!
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