If you’re considering taking out a hard money mortgage, the first thing you’re going to need is an experienced broker. Simple real estate transactions can be done by agents found from flipping through the yellow pages. But, won’t want to  leave this one to chance.

Here’s what can happen if you choose the wrong broker for a hard money loan:

1. The broker you pick doesn’t know where to find hard money investors. He tries to put your mortgage through with traditional lenders and gets turned down. He tells you a hard money loan is impossible.

2. Rather than doing any research into the issue, the broker responds to your queries with “Oh, no, we can’t do that. It’s illegal.” You’d be surprised how many will claim that something is illegal when they actually mean “I don’t know anything about that.”

3. Despite never having completed a hard money transaction, your broker is overconfident. He makes outrageous claims without double-checking the facts. He reassures you that you can take out a hard money mortgage without a down payment or that your interest rates will be the same as those given for traditional loans (both false).

As you can see, choosing a hard money mortgage broker is an extremely important decision and can have a big impact on whether or not your loan goes through at all. Unlike traditional transactions, a lot of brokers don’t have any experience with hard money loans and won’t even know where to begin.

I’d suggest gathering references and calling your top picks to get some information about their business and direct experience with hard money loans. Take a look at my complete article How to Choose a Hard Money Mortgage Broker for some of the most important qualities to consider.

photo credit: TheTruthAbout…

See Also:

Answers to Common Hard Money Mortgage Questions

How to Take Out a Hard Money Loan

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