How Does a Private Lender Decide to Give Loans?
Investing Money There are many places where you can invest your money. The most common are savings accounts, money markets and the stock market. Savings accounts are safe but pay very little in investment interest. Money markets have little risk and pay better interest than savings accounts. The stock market, meanwhile, is very risky but pays well if invested wisely. Another place people like to invest is in real estate. Real estate always does well in the long run, and sometimes very well as a short-term investment. The difference between real estate and other investments though, is real estate is tangible and will always have some value. Why Use a Private Lender A conventional mortgage company or bank may deny your loan application if you have too many open lines of credit, or wish to suddenly fund repairs on a house you purchased for cash. Most companies and banks will also not lend money for the property until you have owned it for at least one year. This is called seasoning. A pas
Related Questions
- At my undergraduate institution, I received Stafford Loans and had to go through a private lender. How are Stafford Loans different from Direct Loans?
- What happens if I get rejected because the lender just doesn want to make any private loans?
- Does UNC have a preferred lender for private education loans?
