Frequently Asked Questions About Private Mortgages
When buying a house, choosing a property is only one part of the process. The other part involves finding a mortgage to purchase your dream home. If it’s your first time applying for a private mortgage, you may have a ton of questions about this mortgage product and how it works. To ensure you have the fundamental details you need to make smart and educated choices, Capri Mortgage Corporation has answered some of the most frequently asked questions about private mortgages.
1. Are there any fees associated with arranging a private mortgage?
Yes. Fees vary based on the risk, location of the property and the complexity involved in arranging the mortgage. They will also vary between brokers and lenders, so choose your broker carefully.
2. How much of a mortgage can I get based on my equity?
There are a lot of variables that go into determining how much of a mortgage you will qualify for. Usually, a lender will look at:
a. Your ability to pay.
b.The location of the property.
c. The quality of the property.
d.The value or size of the mortgage required vs. the value of the property.
3. How good does my credit have to be?
Only seldom will a private lender take into consideration your credit. The lender’s decision is usually based on the loan-to-value requirement and the size of the mortgage and how practical the deal is for them.
4. Will a private lender provide a mortgage on “land” only?
While the answer to this question is yes, lenders usually like to see a larger equity stake in the property.
5. Will you mortgage a mobile home?
Yes. They can be more difficult to finance as most lenders don’t like them, and the rate will be higher as a result.
6. Will you lend on land in the Agricultural Land Reserve (ALR)?
Yes. Thou these mortgage requests are looked at more carefully as it takes longer to foreclose on land in the ALR.
7. Will you mortgage a property in foreclosure?
Yes, we can. The circumstances must make sense to the lender and provide a clear exit strategy or ability to pay.
8. Do you offer a private mortgage on commercial property?
Yes, we do. The private investor pool interested in lending on commercial property is much smaller, and the rates are higher than those on residential mortgages.
If you have any more questions about private mortgages, get in touch with the experts at Capri Mortgage Corporation. As a leading private equity lender in British Columbia, we provide the most competitive mortgage rates and the best mortgage options available in the market. With over forty years of experience under our belts, we can easily provide you with prompt, efficient, and professional mortgage services. Whether you require first or second mortgages for residential or commercial properties, we can smoothly handle all your financial needs and accommodate your proposals.