Why use a non-bank lender? | Real Money Talk | Velocity Financial | May 2023
The bank said no!!! Now what??
As mortgage advisers we have several reasons why we might recommend using a non-bank lender over a traditional bank, for some situations.
Graham and Brendon talk more about lending through a non-bank lender and the opportunities they provide over traditional banks, especially when the bank said no.
Pros of a non-bank lender can include:
Faster and more flexible approval process: They may have fewer bureaucratic hurdles and may be more willing to work with individuals or businesses that have less-than-perfect credit histories.
Specialized lending products: Non-bank lenders often specialize in specific types of loans or cater to niche markets.
Higher approval rates: Non-bank lender may have more flexible criteria and be more open to lending to individuals or businesses with less established credit histories or unconventional circumstances.
Personalized service: Non-bank lenders may offer a more personalized and hands-on approach compared to larger banks.
Access to alternative funding sources: This can provide additional options for borrowers who may not meet the stringent requirements of traditional banks.
Competitive interest rates: While interest rates can vary widely among different lenders, non-bank lenders may offer competitive rates or even lower rates in some cases.
Do your math first and get advice.
Non-bank lenders also come with their own considerations. They may have higher interest rates, shorter repayment terms, or stricter terms and conditions. Always seek independent financial advice before entering into a loan agreement.
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