You're thinking about getting a mortgage loan from a big bank or a private lender, but you're not sure which one to pick. Think again. The differences will matter when you find the perfect property and are ready to close the deal.

A mortgage loan from a private lender like Gelt Financial is much better than a traditional mortgage loan in many ways.

It's easier to get a loan from a private lender

Not everyone is lucky enough to have a good credit score. It can take years to build credit or get it back up after a hard time when it was low. These financial problems will stay on your credit report for a long time, and if you try to get a traditional mortgage loan from a bank, you may be turned down.

Since a private lender isn't a bank and can get collateral from somewhere else, credit scores and reports might not matter as much. Private lenders have a lot more freedom when it comes to who they give money to, which is why they are known to take risks.

A private lender can give you a fair chance at a mortgage loan no matter what your credit score is.

Relationship Building

Getting a mortgage loan from a private lender is a great way to start a relationship with a hard money lender that will last for the rest of your life.

Honoring their terms of the contract, doing what you have to do, and showing them that you are a worthy recipient will set you up for future success and a professional relationship with your private lender, where the investment opportunities are endless.

Less paperwork

Time is important in real estate deals. There may be a chance to buy a home that requires you to act quickly and without the problems that traditional banks are sure to cause.

Private lenders don't have to deal with this as much as these big banks, so the competition you're seeing will be gone in no time.

Great for Beginners

For people who have never taken out a loan before, a mortgage loan from a private lender is a great place to start. We don't all start out with property or a lot of money, so these loans help us make important purchases and investments to start our lives.

People who are just starting out financially may be seen as a risk by private lenders. However, once they have a mortgage loan with a private lender, they can move on to other investments.

It is easier to get a loan from a private lender.

The way Gelt Financial looks at the application process is different from how a traditional bank does. A private lender won't be as interested as a big-name bank in getting all the paperwork and going through it with a fine-tooth comb.

It's part of their job to take risks, and if you're self-employed and don't have a W2 form or a steady work history, which traditional lenders want to see, it won't matter as much in this application process. You have a better chance of getting a mortgage if you go through a private lender.

Less time wasted

For mortgage loans, banks have to follow a strict and difficult filing process, which is stressful and takes a lot of time. But these rules don't hurt private lenders, and they don't have to deal with all the red tape.

This makes it possible for the loan to be given to you much faster than if you applied for a loan the old-fashioned way. And if you've worked with this private lender before, it can be done even faster because they already know about your past and have a relationship with you.

Lower Down Payment

A traditional mortgage requires you to put down at least 5 percent of the home's price, but banks would rather you put down much more, up to 20 percent, which will give you better loan terms.

Private lenders Melbourne might be willing to give you a hard money loan for the full purchase price. This means that you wouldn't need a down payment and would only have to pay the origination fee and interest each month until the loan is paid off in full.