Why Borrowers May Choose an Alternate Mortgage

When most people want to buy a home, they get a list of local banks and mortgage companies to start comparing the available financing options. However, the truth is that not everyone with a dream of owning a home qualifies for a traditional mortgage from these institutions. The good news is that there are alternate mortgages to fill this void in the market. An alternate mortgage can be understood as a mortgage loan that is created and offered by an alternate lender in Surrey. Alternate lending helps borrowers to bypass the various requirements and hurdles that are associated with traditional mortgages. Below are some of the reasons why you may choose an alternate mortgage.

Easy to Qualify

For some people, qualifying for a traditional bank mortgage is almost impossible. For instance, if your credit record is less than perfect or you are self-employed and you do not have a proof of stable income, banks and mortgage companies are most likely going to reject your application. On the other hand, alternate lenders in Surrey are less concerned with such issues and they will offer you the money that you need to buy a house as long as the deal seems profitable to them.

Short Approval Process

When it comes to processing mortgage loans, banks usually follow a stringent filing process, which is obviously stressful and time-consuming. On the other hand, alternate lenders are not slammed by strict regulations, and therefore, they do not have to deal with the red tape. This means that acquiring a loan through an alternate lender in Surrey is much faster compared to applying for a loan in the traditional sense. The process can even be much faster if you are borrowing from an alternate lender that you worked with before. Therefore, if a real estate agent is offering a deal that requires you to act quickly, an alternate mortgage in Surrey is the way to go.

Larger Down Payment

Traditional mortgage lenders such as banks and mortgage companies will not finance the entire amount that you need to buy a house. This means that you will need some money from another source to adequately finance a real estate deal if you decide to borrow from a traditional mortgage lender. For instance, a bank can require you to pay about 20% of the purchase price. On the other hand, alternate lending does not involve such requirements, and some alternate mortgage lenders can even provide 100% of the money required to buy a house.

The Bottom Line

If you are looking for a more flexible way of financing a house purchase, an alternate mortgage may be the best option. Borrowing from an alternate lender can enable you to bypass the various hurdles that are associated with traditional mortgages. If you are looking for an alternate mortgage, the options are many, and you just need to work with a reliable mortgage broker for you to get the best deal.