If you’re looking for a hard money lender and you’re debating between requesting a loan from a large, national lender, or a smaller, local lender, there are a multitude of reasons to choose a local lender over a national one. Here are five of the top reasons to use a local hard money lender:

1. More personal attention. Most local lenders are small business owners who will meet with you face-to-face and take the time to learn about your loan request. When you apply for a loan with a larger, national lender, you risk becoming just another loan number.
2. Faster processing times. Meetings with local lenders are with the actual decision-maker who controls the funds rather than with a middleman who reports to a third party or committee. This helps to avoid time-consuming communication and approval processes. Most local lenders can approve hard money loans in as little as one to two weeks.
3. Increased likelihood of approval. In addition to underwriting loans based on requirements other than credit scores, local lenders are also often more likely to approve hard money loans in their area because they can more easily recognize what is a good deal for the local market without needing explanations from the borrower.
4. Reduced possibility of default. Because local lenders tend to put more effort into assessing and appraising properties before underwriting loans, these loans tend to be less at risk of default. This risk is also reduced by the willingness of local lenders to work with their borrowers to customize their loans to fit the circumstances rather than expecting the circumstances to conform to a standardized loan product. Local bridge lenders also tend to be more willing to work with their borrowers in the event of problems after the loan has been issued to make sure that the borrower can repay the loan rather than opt for default.
5. Knowledge of the local market. Knowledge of the local market is one of the greatest assets of a local lender because they are better able to assess the risk and reward of your investment. Most local lenders have many years (if not decades) of experience lending in their particular market, which they will bring to your project.

These five reasons are just a sample of the many benefits that borrowers can reap by choosing to apply for a hard money loan from a local lender. Montegra is a local lender for the Colorado and front range market. Contact us at 303-377-4181 if you have a loan request for a property in this area or if you have any questions about the benefits of using a local lender for your hard money needs.