Wednesday 10 June 2020

How to Find a Genuine Stated Income Commercial Lender



If you are trying to buy a new property or upgrade your old one, getting a hard money loan is the first thing that might cross your mind. There are several banks that loan out money for such purposes. However, if you do not have a great credit score, then you might have to narrow down your search to stated income commercial lenders. Though there are bad credit loans available in the market, there are also a number of scammers who take advantage of an unwary customer. In such circumstances, it is essential to check if the lender is genuine or fake. Once you are sure about this, only then must you approach them for any kind of financial assistance. 

Checking the Private Commercial Lender’s Legitimacy

Before you apply with a stated income commercial lender, it is essential to do thorough research about the different lenders in your city. There are several means to check if the financer is genuine or no. Here are some ways through which you can spot potential red flags.

• Online Presence

You may get an offer for hard money loans from several lenders, the moment you start looking out. In case someone approaches you, check online for the company name and if possible, customer reviews. 

• Better Business Bureau

Every genuine company will be listed on the Better Business Bureau website. You can learn more about the lender and his company. Check for the grade and reasons for it. Reading customer reviews will also help you decide if you can apply for a loan with that particular lender. If you are not satisfied, then you can search the BBB portal for another one.

• Approach

Though lenders want to give out loans, none of them would be desperate or run behind borrowers. If you feel like the company is overtly manipulative or rushing you into applying for a loan, even before you check for facts, then it is advisable to discontinue all contact.

• State Attorney General

As a last resort, you might want to check with your state’s attorney general to be entirely sure of the business. By law, every loan broker and lender should register with a state agencies before commencing their business. If there is no record found, then you for sure are in for a scam. So be careful.

Sometimes, lenders may ask for your bank details to know where to transfer the loan amount, once the application has been approved. However, no lender will ask you for your online banking credentials. If this is the case, then it can be a fraudster who wants to lay their hands on your money. Knowing how to check if a stated income commercial lender is genuine can potentially save you from losing your money and property.

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