Hi, and welcome to our first video blog here at Bay Mountain Capital. Today we are going to discuss credit and why it’s important in the hard money lending industry.
What is a credit score?
A credit score is a tool, or actually a measurement, used within the financial industry to determine one’s ability to repay a loan. It could be a home loan, it could be a car loan, or it could be a credit card.
How does a hard money lender approach a credit score differently than a traditional lender?
A traditional lender, such as a traditional bank, looks at credit to determine’s one’s ability to repay a loan, and they really focus on that. A hard money lender- yes we do look at credit, but our primary focus is on the actual asset the loan is for and the value of that asset on whether or not we can recoup our money and get paid back.
Why does hard money work for every type of credit score?
There’s a myth in our industry that a hard money loan is just for someone with a low credit score, and that is untrue. People with a high credit score also benefit from a hard money loan. And why is that? Number one, we close quickly. It only takes us a week to two weeks to close, versus weeks with a bank. And number two is that we can give you a higher loan to cost, which means you have to bring less money to the table in order to do the project.
What is the Bay Mountain Capital Loan Process?
Here at Bay Mountain Capital, we are very transparent. We want to partner with our borrowers. If they succeed, we succeed, and they come back for another loan. We have a traditional loan program and we have a preferred loan program. The preferred loan program just means if you have a little bit better credit score, a 680 or higher, we’re going to give you a little bit more favorable terms. But even if you’re credit score is less than 680, we still want to work with you and we still want to see you succeed.
Thank you for watching our first video blog here at Bay Mountain Capital. We look forward to bringing you more blogs in the future about topics that you want to learn about. If you have any topics you want to hear about, please don’t hesitate to write in and let us know. Thank you and have a good day.
About Bay Mountain Capital:
Bay Mountain Capital has been in business for more than a decade, closing approximately 3,000 loans. We specialize in financing all types of residential and commercial property investments throughout Texas and Georgia. Using common sense and value-added approach, we strive to incorporate these principles into our underwriting and closing processes.
As a direct lender, Bay Mountain Capital can close a loan within one day after receiving a complete file and clear title. The process generally takes two weeks for a residential loan but can be accelerated where circumstances require it.
We are primarily an asset-based lender, which means that qualification requirements are limited. Our rates and fees are among the lowest in the industry.