Private Mortgage Options
“Unlike Regular Bank Commitments, Toronto Private Mortgage Options Can Have Very Short Shelf Lives”
Toronto Private mortgage options tend to only be available for short periods of time for a number of different reasons.
Unlike a bank or institutional residential home mortgage lender that are prepared to re-issue term sheets or commitments once an offer lapses, a private mortgage lender may or may not choose to reconsider a financing scenario once a financing offer of some sort has gone stale.
As I mentioned above, there can be several different reasons for this.
First, the private lender as an individual only may have a certain amount of funds available to place via private mortgage at any given point in time. If you don’t accept an offer for financing within the time period provided by the lender, they may be out of funds when you’ve chosen to reconsider.
Second, private lending has a lot to do with the personal feel and judgment of the private lender. If a deal does not close, they may sour on it all together and then not be prepared to revisit it at all in the future.
Third, if any of the application dynamics change or if there is a negative change in the local market for the type of property in question, then its less likely that a lender will be prepared to provide the exact same borrowing amount and conditions in the future for a private home equity mortgage.
And while there are lots of private lenders around, locating money when you need it for terms you are prepared to accept can sometimes be a hit and miss situation.
Especially when you’re trying to arrange a bad credit mortgage, the number of private lenders even interested in your request may be few and far between.
So if you’re going through the process to assess private mortgage financing options and you come across an offering that you feel you can live with, don’t expect the offer to last forever for one or more of the reasons given above.
And if you’re pressed for time but still want to try and hold out for a better deal, make sure you can afford the gamble in the time you have to work with other wise you could end up with no options and lose out on an investment opportunity or worse.
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About the Author Joe Walsh
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel