Hard money lending is not nearly as familiar to the average consumer as traditional bank lending. As such, a lot of people don’t really understand what hard money is all about. Among the many questions curious consumers ask is the following: do hard money borrowers pay closing costs?

Media misinformation leads some to believe that hard money lending takes place in shadowy back alleys in the middle of the night. It is assumed that private lenders offering hard money and bridge loans are predatory lenders looking to charge sky high interest rates in hopes of being able to repossess collateral. But none of these things are true. Functionally speaking, hard money lending is very similar to traditional lending.

Applications, Reviews, and Closing Costs

Hard money lenders are not standing on street corners handing out money to passersby. They are professional, legally established, and licensed firms that operate from real offices staffed by people wearing business suits. To apply for a hard money loan, you have to complete and submit an application. You have to provide documentation. You have to prove your ability to repay what you borrow.

All the documentation you furnish is reviewed by the firm. Should your loan be approved, there will be more documents to complete at closing. And yes, you will pay closing costs. Some of the closing costs may differ compared to traditional loans, and some of the costs associated with bank borrowing are not part of hard money. But there will be closing costs to pay.

Typical Hard Money Closing Costs

Nearly every hard money lender charges an origination fee. Salt Lake City’s Actium Partners explains that this fee is represented as ‘points’, based on the fact that it is determined using a percentage of the total loan amount. Assuming a single point is equal to 1% of the loan amount, a 5% origination fee on a $100,000 loan would be $5,000.

Other typical closing costs associated with hard money loans include:

• Document Fees – Lenders typically charge a fee for preparing and processing documents. Sometimes fees are split up between the two, sometimes they are categorized under a single fee.

• Appraisal Fee – Given that hard money loans are approved primarily on collateral, the borrower is charged a fee for appraising said collateral. Lenders prefer to work with their own appraisers and simply pass on the cost, regardless of what it is.

• Underwriting Fee – Hard money lenders are known to charge underwriting fees, just like banks. However, the underwriting process is slightly different for hard money lenders, and they are under no obligation to charge a fee.

• Credit Report Fee – If a lender feels it necessary to check a borrower’s credit, the fee for running a credit check is added to the loan.

• Wire Fee – Hard money lenders prefer to electronically wire funds into borrower accounts rather than cutting checks. Their banks charge a fee for the service, and that fee is passed along to borrowers.

There may be a number of additional fees that are charged by individual hard money lenders. For example, any legal fees associated with preparing or closing on the loan will fall on the borrower. These can be anything from attorney’s fees to the costs associated with bank notes or deeds of trust.

The long and short of it is that hard money borrowers pay closing costs just like their counterparts who secure traditional financing do. Closing costs are part of the game. Though they may seem unfair to borrowers, the cost of doing business is passed on to customers in every industry.

So, you’re willing to take part in trades? As you are probably aware, picking good stocks is a difficult task. Let’s face it: there are thousands of stocks on the market right now. Picking “success” stocks can be a difficult, daunting, and time-consuming process for both new and experienced investors. Furthermore, you may be selecting stocks based on highly subjective criteria. We all have biases, such as confirmation bias, which causes us to seek out favorable information about what we believe to be true while ignoring contradictory information.

What exactly is a Stock Screener?

Stock screeners are tools that traders and investors use to separate stocks based on user-defined metrics. Stock screeners are available on popular trading platforms and websites for a subscription fee. Stock screeners allow users to select trading instruments that fit a specific profile or set of criteria. Traders and investors, for example, can filter stocks based on market capitalization, price, P/E ratio, 52-week price change percentage, dividend ratio, average five-year return on investment, and average volume, among other criteria.

Overview of Trade Ideas

As you can see, investing and trading are already difficult. The amount of data being thrown at you makes gaining any kind of trading edge impossible. This is why Trade Ideas caters to professional traders, active traders, and hedge funds to manage what appears to be impossible to overcome the amount of data. This technology has accomplished something that no human being can match. What exactly is that, you ask? To monitor every trade of every stock in the market and alert you to profitable activity so you can be the first to act. That’s right – the Trade Ideas scanner software can give you the competitive advantage that means the difference between SUCCESS and FAILURE.

The Following Is How Trade Ideas Work:

• Each day, the software runs thousands of trading scenarios on a computer to determine which market relationships have predictive outcomes.
• The Trade Ideas scanner software identifies what is working in up and down markets and advises you on what to buy, short, and when to exit the transaction.

So, instead of trawling data like an accountant or statistician, you can be the CEO who puts your money to work. Leading online brokerages have certified Trade Ideas technology for their premium trading platforms for over 10 years.

Spotlights of Trade Ideas

Artificial Intelligence (AI)

The A.I.powered Robo-advisement consists of several dozen different investment algorithms that are subjected to over a million trading scenarios overnight to identify a subset with the highest probability of alpha in the next market session.

Plus Brokerage

Produce scans, identify trading opportunities, and develop trading strategies. Automate your strategies and let them run directly through your Interactive Brokers account.

Trading Simulator

To maximize your advantage, Trade-Ideas Simulated Trading works in tandem with the AI and idea generation tools. There is no replacement. Investors can quickly see what actions result in rewards and where mistakes need to be corrected with proper feedback.

Window for the Odds Maker

Prepare for an ever-changing market. Use the proprietary Event-Based back testing to determine how well scans, entry signals, and trading plans have performed in the past. Allow Trade Ideas to optimize which parameters can be changed to improve trading strategy results even more.

Full Quote Windows

The Trade Ideas full stock quote windows display all fundamental data relevant to a stock’s price, including quick visual indicators that show where the stock is in its range for the last hour, trading week, and 52 weeks.

Conclusion:

With Trade Ideas, you can focus on the critical aspects of trading because you will not need to scan the markets yourself every single day. Remember, there are hundreds of trading strategies at your disposal! Each live trade and trade history is completely transparent, trade setups are easy to find, and traders can choose between pre-configured and self-developed trade setups. Not a whiz at computer programming? Not a problem! To work with Trade Ideas, no coding knowledge is required. So, if you want to ensure that there are no more human errors and that you are well-versed in the best trading strategies before the market opens, Trade Ideas is the place to be.

Adulting is a difficult, albeit necessary, aspect of our lives if we wish to function in modern society. However, given the sheer number of things that we have to do throughout our lifetime, it can be easy to lose track of a few things here and there. What’s the key to adulting with ease? Everything will be made simpler and more manageable with proper planning. In this guide, we’ll take a closer look at what you need to do to prepare to buy your own house and car.

Ask yourself, do you have enough money to put down and pay over time?

The last thing we want to do when purchasing a new asset is lose it because we can’t afford the payments that come after we make the initial downpayment. The first step to take is to establish a budget to determine how much you can afford to pay down on a new asset like a car, whether or not the auto loan you take out will offer reasonable monthly payments that you can afford over time, and allow you to carve out room for an emergency fund in the event that unforeseen expenses arise. Like any other aspect of life, being financially stable and planning ahead is key to owning your own car.

Of course, saving money should also be a major focus. For example, you can make your car more affordable by doing a quick Google search for “car auctions near me.” Then, you will find a used car option that meets your needs and offers you a major discount in comparison to the new car that you intended to drive off the lot. No matter what make and model you’ve set your sights on, you’re sure to find an affordable used car that will do more than just take you from destination to destination.

Check your credit score and make the necessary repairs.

Your credit score plays a crucial role in many areas of your life, including buying a car or a home. When your credit score is too low, it limits your opportunity to find lenders who will loan you the money that you need to finalize a purchase. Now is the time to check your credit score to make sure lenders like mortgage lenders will consider you for a home loan. If your credit score isn’t good, you can always improve your credit score by catching up on your unpaid debt, paying closer attention to your credit utilization so that you don’t go above 30 percent, and paying all of your new debt on time.

Once you have both the great credit score and downpayment needed to secure your new home, you can then approach a realtor like Marc de Longeville from Immobilier LA to help you find the perfect home based on your desired layout and location. Remember, a new home is a major investment, so it’s important for you to find one that you can see yourself living in for years to come.

Develop the financial stability you need to live stress-free.

Proof of income plays a crucial role in being able to access these assets as you need to be able to prove that you can afford to make the payments that you say you will. Financial stability, while difficult in this day and age, is essential to moving forward in life and leading a better quality of life. If a new car or a home is in your future, now is the time to consider your career goals and your educational goals, and explore different pathways that will allow you to achieve greater stability.

Adulting can be hard, but it’s far less difficult when you know what you need to do and make a plan for the future. If you anticipate buying a house or a new car soon, use the guide above to help you reach your goals.