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Is It Better to Turn to Private Lenders than Banks?

Strict mortgage rules and lower amount limits are forcing homeowners to turn to private lenders instead of doing it the conventional way, which is applying for a loan through banks. Studies show that there’s a significant rise in the number of people who have requested a private lender to finance a mortgage.

Many people turn to private mortgage lenders because they want to add to their existing mortgage, which is almost impossible to do with banks. Such a loan is called the second mortgage, and it is quite a popular way to get extra funds these days.

Why Do You Need a Second Mortgage?

There are many reasons why one needs a second mortgage and it may be as trivial as taking an out-of-the-country trip to as serious as facilitating a complicated medical operation. Either way, the need for a second mortgage is real. But the truth is that many homeowners are also living beyond their means, which may affect their credit score despite having great jobs.

Aside from homeowners, there’s another group of people who may need the services of private mortgage lenders and these are real estate investors. People solely relying on rental income for everyday support are the ones that are most affected by the more stringent laws on bank loans and financing. As such, they have no choice but to turn to private lenders if they get stripped out of cash or if they need to refinance.

What Are Private Mortgage Lenders?

Private lenders may be corporations, groups, or individuals that have the capital to lend people a huge amount of money. There are a lot of private lenders these days, and their rules for approving a loan are not as strict as that of a bank or financial institution. Private mortgage lenders can do this because they are not required to take deposits as banks do. As such, they can make riskier loans.

People may think that other than banks, credit unions are their other choice. Unfortunately, even credit unions are voluntarily following the same stricter mortgage rules imposed by the federal law. That’s the reason why they aren’t a good choice these days either. This makes private lenders the only feasible option for unqualified borrowers.

How Does Private Mortgage Lending Work?

Think of private lenders as entities that can provide you with a short-term loan to fill any gap in your finances. Many people have found the services of private mortgage lenders helpful in getting them out of complicated financial situations using their real estate property.

Imagine yourself owning a $500,000 home that badly needs repair and having a $100,000 mortgage on it. If you have a poor tax and credit record, you won’t be approved of any loan from the bank. Now if you can’t pay for that $100,000 as stipulated, the property will be foreclosed.

What if you can borrow some $200,000 off the property through a private lender so you can pay off the mortgage and do some repairs at the same time? Surely, after you have sold the property at its market value, you’ll be able to write off your debt from the private mortgage lender and keep the difference. That’s one good way second mortgages and private lenders can work for you.

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5 Tips When Scheduling an Appliance Repair Service

It pays to be prepared when the technicians arrive to do appliance repair. You should be ready for the service visit by knowing more about the fees that you have to pay and the paperwork that has to be accomplished. Follow the first tips we have below to stay on top of things.

As far as home appliance repair is concerned, knowing how to properly deal with the technician is essential. If you have scheduled someone to come to your home to repair or replace any device, you have to do certain things to make everything go as efficiently as possible.

1. Clear your own schedule.

You certainly want to know when exactly the repairman will come, although it’s almost impossible for these professionals to estimate how long each home visit will take. But if the scheduling assistant gives you a timeframe as to when you can expect the technician, make sure that you’re available during that time with some leeway before and after the schedule, in case the contractor is early or behind schedule. Usually, contractors call 30 minutes before showing up.

2. Be prepared yourself.

While you may be eager to thoroughly explain the issue to the technician, you should also let him evaluate the situation himself. Make sure the appliance is clean and empty. And if you want to show him some invoices of past repairs done, make sure that they’re readily accessible.

3. Provide the technician with a clear path.

Don’t waste the technician’s precious time by making him move items out of the way just to get to the broken kitchen appliance. Keep in mind that you’re paying these professionals by the hour. Provide a clear path to the appliance and make sure that the space around it is clear, as well. Additionally, be sure that there’s adequate lighting in the area so it’s easier for the technician to work.

4. Keep your pets away from the work area.

Some technicians get distracted if they’re working around animals. For your safety and sanity, place your pets in their cages or take them outside for the time being. Doing so will prevent any delay in the technician’s work.

5. Know about your payment options beforehand.

You may ask the contractor if you have to pay something when he arrives but it pays to know this detail beforehand. Before you schedule any contractor for whatever type of work, ask if they charge a service visit fee. If they do, ask how it costs. If you’re good with that, be sure that you have the cash ready or your checkbook handy.

These tips will definitely make service repairs go as smoothly as you want them to be. The faster the technician can get the work done, the faster you can get your home appliance working again. Always be sure that you’re getting the most reliable appliance repair Reno NV offers so you’ll get the best possible results every time. You deserve to be served by the most experienced and most knowledgeable technician in your area.