If you’re in the market for a private mortgage, you may have heard the term “presale” thrown around. Presale refers to a situation in which a borrower secures financing for a property that is not yet built or completed. Essentially, presale financing allows borrowers to access mortgage funds in advance of the property being constructed or fully developed.
Presale financing is particularly useful for real estate developers who need to secure funding for a project before construction begins. With presale financing, developers can use the funds to purchase the land, hire contractors, and cover other expenses related to the project. This can be especially helpful for smaller developers who may not have access to traditional bank financing.
For individual homebuyers, presale financing can also be a useful option. By securing financing in advance, buyers can lock in a favorable interest rate and ensure that they have the funds available to complete the purchase once the property is ready.
Overall, presale financing is an important tool in the world of private mortgage lending. If you’re considering a private mortgage for a property that is not yet built or completed, presale financing may be a great option for you. Be sure to work with a reputable lender who can guide you through the process and help you make the most of your financing options.