Reasons Why You May Need a Transactional Loan

Transactional funding helps short sales to progress faster. Time is of the essence where short sales are concerned, so all parties must move quickly to speed the process along. A transactional fund or cash account can be extremely beneficial for a number of reasons. You might need to take out a transactional fund or cash account if:

You Are Selling Your Property

Selling your property can be tough, especially when you are awaiting payment from the buyer. Sometimes checks take a while to clear, and waiting for this payment can seriously hinder your finances. A transactional loan would help you in this instance, as money would be borrowed over a short period of time. When the check clears, you would then pay back the loan. With this type of loan, you don’t need to wait as long for it to come through, and you should experience a quick and hassle free process as long as you have a good credit history.

You Are Buying a Property

Transactional loans can also help if you are purchasing a property. If you are purchasing a property then you may need help when it comes to moving fees and other such expenses. This is especially the case if you are waiting for someone to buy your existing property. A transactional loan would be extremely beneficial in this instance. Although the loan would be active over a longer period of time, it would provide the funding that you need. The process is easy to get through, and you will not have to worry about finances.

You Are an Investor

You could also take out a transactional loan if you are purchasing a property as an investment property. Many investors get transactional loans to get the money that they need on a short-term basis. You would use the loan money to support your finances between the time that you purchase a property, and the time that you sell it for a profit. A translational loan always involves a pre-contract agreement, and it is important to have the agreement drawn up by a legal professional. A proof of funding letter will be needed to make the process of getting a transactional loan easy and fast.