Quick loans are lifesavers. Borrowers who need immediate cash rely on quick loans in spite of high interest rates and short-term payment schedules. If you are currently experiencing temporary financial struggles and you are looking for cash that you can use to cover your expenses, a bridge loan might be the best for you.
Bridging loans are ideal for people who are planning to sell a property and buy a new one or those who need financing while waiting for their long-term loans to get approved. This type of loan works by filling the gap. For example, buyers can apply for a bridge loan to pay for the new property while awaiting the sale of the old one. The same goes for business owners. They can use bridge loans for short-term expenses while they wait for the approval of their long-term loans.
Not everyone is aware of how this loan is processed. To give you insights, here’s how you can apply for bridging finance in London.
Look for a good bridging lender.
Looking for potential lenders is the first step of the application. There will be a lot of options in London but you need to filter them out so you can land a good deal. You will need to consider factors when choosing a good bridge lender including how established the company is, how many clients have they served, are they offering competitive interest rates, and the terms they give to their clients. When applying for a bridging loan, it’s better if you can compare your options. In this way, you will be able to determine the lender who gives the most attractive and competitive deal.
Check the terms of the loan before submitting your application.
All lenders have pre-written terms in relation to the loans they offer. Before you sign and submit your application, make sure to check all the conditions set out on the paper. Check the interest rates, payment systems, payment schedules, fees, and anything that can potentially impact your payment in the future. Typically, bridge loans have high interest rates and short-term payment schedules. Once you submit your application and it got approved, it means that you are accepting the terms of the lender.
Secure and submit the documents required together with your application form.
The documents needed to apply for the loan are common–a completed application form, proof of income, credit records, and identification cards. On top of these things, you will also need to prepare your property for an appraisal because some lenders consider the appraised value to determine the reasonable loan amount. You will also be required to cover the title policy insurance to qualify. Lastly, origination fees should be paid upfront. To get your loan approved, ensure that you are willing to pay 0.5%-1% of the loan amount as origination fees.
Wait for the approval.
Waiting for the approval only takes one to two weeks before you get funded. Fast bridging loans are processed more quickly than traditional loans, which is great because you don’t need to wait long to get the cash you need, In case the approval takes more than two weeks, feel free to make a follow-up.