Over the years, a rise in the popularity of private mortgages can be observed amongst populations that find the public lending system to be unfulfilling. Thus, they turn to private lenders, family, influential individuals or companies, for a loan instead of a bank. In order to ensure that both the parties’ interests are protected, the mortgage needs to be documented so that the expectations are just as clear as the terms of the loan. With such risky transactions, most lending entities are often cautious and require you to fill out certain criteria. They show particular interest in factors like:


In order to give themselves a sense of security, and to understand just how risky the mortgage will be, lenders will often look at your income. Regular income that can be confirmed through documents is preferred rather than one which cannot be confirmed because it would force the lender to make an estimate based on the average income of an individual in your field of employment. This uncertainty will often drive lenders to deny your private mortgage requests.

Additionally, you want to ensure that you have a good credit score. Showing that you keep up with your debts is a way through which you can assure the lender of your credibility.

Bank Statements:

Most lenders will ask for bank statements for the past few months or so. This is a way through which they are able to gauge the consistency with which you earn and the reliability of your spending patterns. A bank statement that remains stable throughout the course of a few months eliminates the risk factor felt by lenders since they will know that you will be in a position to pay them back eventually.

Tax Returns:

Most lenders will often ask for tax returns in order to confirm the information you have given them. Tax returns are used to check whether the stated income in your loan application is the same as that you have reported publically. If both numbers match, the lender is more likely to trust you and give you a private mortgage but if they don’t then they may launch an investigation to find out why you have lied.


Lenders look for assurances of getting their money back. They want to ensure that even in a situation of emergency when you are unable to pay them back by the agreed on the date, you are in a position to repay the mortgage. In order to get that assurance, lenders will look at your assets. The more liquefiable assets you have, the better. This means that you can convert them into cash quickly and pay what you owe. So, if you’re looking for a private mortgage, you might want to ensure that you state all your assets to increase the likeliness of getting the loan.

Steady Employment:

Your employment is something that the lender will look at. It should show favorable conditions like stability, a steady source of income as well as opportunities for growth. This way, the lender is given the assurance that if all else fails, the income generated by steady employment will be enough to pay back the debt over the course of time.

Published by Zoe Sewell