Investor · North Pole, AK · Member since 2017 · 22 posts · 19 votes
Is it customary for private lenders not banks to ask you to provide your own credit history? I have done several loans with banks and they always just pulled my credit. I am starting to work with a private lender and he has asked me to provide him my credit report. I thought I would just ask this question just to get feedback before I sent him anything.
@Jodi Rhoades yes, of course! They need to know that they are making a good investment. I would actually ask for the same from them with blacked out SSN.
@Jodi Rhoades yes, of course! They need to know that they are making a good investment. I would actually ask for the same from them with blacked out SSN.
@Jodi Rhoades my primary private money guy asks for credit reports from all borrowers just for compliance purposes. Also, I suppose if the borrower was in Bankruptcy or had Tax Liens that would impact whether or not the lender made the loan.
If you are buying 25 units, it is probably a company, NOT a private lender. It is a company, not a private individual.
All hard money lenders will pull your credit. If a company is asking you to furnish your own, it is NOT legit. Any lending company will have access to your credit.
It sounds fishy!!!
If it is really a private money lender, they should know you and trust you. They would not even ask for a credit report. I have borrowed a number of times from friends and other investors. No one has ever asked me for a credit report or tax returns. BUT these people are people that I know. Do you know the lender?? Are they in the city where you live?? Can you go to their office??
I would not deal with someone who I can not even see in person. I need to see that their picture on facebook or linked in matches what they look like in person. Otherwise, I can tell you that I am Prince Charles. I have a bunch of money, but send me $450 so that I can pay for the appraisal on your property first. Bye Bye $450.
@Jodi Rhoades If your lender asks for it, then you need to provide it for them. A true private lender is someone typically you have a history with. If not, they are probably just a hard money lender in which case most HMLs do require a credit history report. If they are trusting you with a large sum of money, you should be able to trust them with your credit report. If you don't really have that trust with them, I would not borrow from them.