The Role Played By Residential lenders
A residential lender can be defined as an individual, company, government agency, a group or a financial agency or institution that gives funds to another person, company or any other financing agency with an expectation that the funds will be paid back with an interest on top. A residential lender can also be said to be someone who gives you a loan.
Residential lenders help a lot during life and death situations that occur at times when you don’t have money because you can borrow from friends and family members. Both the public and private development financing agencies play a very important role in when it comes to real estate business. Both the private and public financing agencies or residential lenders partner up with real estate appraisers in order to establish financial packages that are then used in the real estate’s projects.
In any economy, residential lenders have a very important and advantageous to the economy in the numerous ways explained in the following paragraphs: Residential lenders who provide loans for business help to fund for employees, buy offices and machines necessary for the business sector. Many business have been seen to stand firm, grow and develop because of the funds provided to them by financial agencies through lending . Residential lenders generally have, whether directly or indirectly played a role in growth and expansion of businesses by financing a lot of the business operations carried out.
Residential lenders provide loans not only to firms also buy at the individual level for their benefit which they use to buy properties that need a large amount of money to buy like houses; the money or fund given are then repaid in instalments, and a good example is in Kenya one can take a bank loan and use it to build a house then repay in monthly instalments until all the money plus interest has been repaid.
In some few and rare cases residential lenders may fail to follow some of the procedures required by the law and such companies end up being fined a certain amount of money by the government or other law enforcement firms which is also a benefit to the government when it happens.
Once students whose school fees is paid by loans or rather whose education is funded by residential lenders finish education and get jobs, they start repaying the organizations or agencies the amount of money equivalent to the school fees paid plus a certain interest on top which is very important both to the residential lenders and the borrowers. Many lending companies are rising, and as a result the competition increases at a very high rate and in order to attract customers different residential lenders have to come up with awesome offers in different schemes thus benefiting the borrowers.
Every operational and financial agency has to employ different personnel trained in different financial courses and units thus they end up benefiting the society by offering employment to the people. Anyone willing to set up a business may not have much cash to meet up his or her requirements and that becomes the point where the residential lenders come in because they can fund you whatever the amount you need depending on your ability to repay.