Are you looking for a hard money lender for your on-going project?

There’s no dearth of hard money lenders in Singapore. However, not all lenders are equal. Some are more experienced, have a better track record, and offer better rates. You would do well to align yourself with one such lender.

As to the all-important question of how do you find a reliable money lender who’s sensitive to his clients’ needs, the answer is by doing sound preparation. When you are out there shopping for a lender, don’t forget to ask selected candidates these 5 pertinent questions. Answers to them will help you separate wheat from the chaff and pick a respectable licensed money lender.

Q#1 – What kind of experience you have?

There’s much merit in going for someone with relevant experience. Such a player is likely to understand your needs better and the urgency to offer you a tailor-made solution. An experienced money lender will also better understand the cyclical nature of the real estate industry and current local and world economy. In addition to offering you a loan, an experienced professional can offer you valuable advice on avoiding possible risks.

Q#2 – Do you have a license?

This is a very important question and you should never miss asking it. A licensed lender is bound by the law of the land to follow certain rules and regulations. In any case of discrepancy, the borrower can complain to the relevant authorities and seek necessary guidance and protection.

Some borrowers feel that asking this question upfront will make them appear as rude. Nothing could be farther from the truth. Most licensed lenders will show their license without your asking. However, in case a lender is not so forthcoming, you can ask him for a proof upfront. And if the lender tries to dodge the question, you better take your loan application elsewhere. Never, we repeat, never ever deal with a lender who’s not licensed.

Besides asking the lender for a copy of their license, you can also log on to Singapore’s official website and check the names of registered money lenders there.

Q#3 – Can you show me references?

A reputable lender will readily show reviews as well as testimonials from previous clients. While you can find both on the lender’s website, you should also check out what clients say about the lenders on third-party sites. Perform a Google search on the lender and you will see everything that’s there in the public domain about him. In case, there are more bad reviews than good ones, you should be extremely cautious.

Q#4 – What procedure you follow while fixing the interest rate?

Hard money interest rates usually depend on the property type, besides your credit rating and risk analysis. While the interest rates of a lender are higher than bank rates, there’s enough room for negotiation.

Q#5 – How much time you will take to approve my loan request?

Compared to banks, legal money lenders Singapore have fewer requirements. So, they usually approve loans very quickly. Nevertheless, do ask this question so that you can plan things at your end accordingly.