Trying to get a loan from a bank can be difficult, especially if you need the money quickly. That's where fast cash loans come in.
The loans are designed for people who need money quickly and don't want to go through getting a loan from a bank. This blog post will discuss five easy tips to help you get a fast cash loan.
1. Have More Liquid Assets
One of the first things a lender will look at is your liquid assets. Liquid assets can be converted to cash, such as savings accounts, stocks, and bonds. The more liquid assets you have, the more likely you will be approved for online fast cash loans in Detroit, MI.
To ensure you have enough liquid assets, start by opening a savings account and setting aside some money each month. You can also talk to your financial advisor about investing in stocks or bonds.
Another way to increase your liquid assets is to eliminate any unnecessary expenses. Take a close look at your monthly budget and see where you can cut back.
By increasing your liquid assets, you can improve your chances of getting approved for online fast cash loans.
2) Understand LTV Requirements
LTV stands for loan-to-value, and it’s a metric that lenders use to determine how much money to lend you. The higher the LTV, the riskier the loan is for the lender.
For fast cash loans for bad credit in Detroit, MI, most lenders like to stay around 70% – 80% LTV. If the property is worth $100,000, they’ll loan you $70,000 – $80,000.
You can increase your chances of getting approved for a hard money loan by bringing more money to the table. The more money you have to put down, the lower your LTV.
If you don’t have a lot of cash on hand, you can still try to negotiate with the lender. Some lenders may be willing to work with you if you have a lower LTV.
Another option is to find a co-signer who can help guarantee the loan. It can be someone with good credit or equity in another property.
3) Be Ready For Higher Interest Rates
Hard money loans come with higher interest rates than traditional bank financing because lenders take on more risk.
You can expect to pay anywhere from 12-18 percent in interest, plus points. Points are a specific percentage of the loan amount and are paid at closing. A typical hard money loan might have five points, which would be $12,500 on a $250,000 loan.
Some lenders will also require you to pay monthly interest payments and the loan payment. It is called "interest only." Others require that you pay back some of the loan principal and interest each month, called a "partial amortization."
Conclusion
Whether you’re a first-time borrower or an experienced one, following these three tips can help you get approved for a fast cash loan. Work with a reputable and experienced lender, be prepared to answer questions about your finances, and have all your paperwork in order.
