While waiting for your inheritance, you might need money to do other things. You can consider applying for probate loans to get access to money faster. However, most people don’t know how it works and end up making mistakes. The probate process can take a long time to complete, inconveniencing you financially. Knowing what to expect and the process helps you avoid scammers. It’s important to contact a probate attorney to help you in the process and to ensure you are not exploited when taking the loan. You need to fill much paperwork that can be challenging doing it on your own. If you are considering a probate loan, read on to learn more. Here, we will explore what you need to know about probate loans.
What is a Probate Loan?
The probate loan, also known as the estate loan or inheritance loan, is a loan you take from a hard money lender against the future inheritance you are waiting to receive. The lender will earn money through the interest you get after receiving the inheritance. However, the loan will accumulate monthly repayment as the probate continues to process. Since it is a recent financial development, most traditional banks will often present other loan options making it hard to find a probate lender.
How Long Does it take to get money after probate?
When the probate process commences, receiving money from your inheritance will take less than a year. If there are no complications with the probate process, the process will take at least six to nine months. If there are complications, such as will contests, the probate process will exceed more than one year. A good probate lawyer will help to ensure the process is faster and you can receive your inheritance in under one year.
How long can the probate loan process?
Applying for a probate loan can be processed in a few weeks or a month, depending on the lender. The rate of processing the probate loan will depend on how fast your lender can verify your inheritance and evaluate the overall estate. Once the lender has verified the information, they will submit the proposed loan terms to you. After doing the necessary signing and writing an agreement, your loan will be processed within days. It’s important to check the interest rate they pose and the terms to ensure you agree before aggreging to sign.
What is the maximum amount you can receive from probate Loan?
The lender will evaluate the value of your estate and the amount you are set to receive from your inheritance. Most lenders will give you a loan between 25% and 75% of the total amount you expect from your inheritance. It’s important to note that the amount you receive will highly depend on the lender, the value of your inheritance, and how long the probate process will take.
Summary
The above are crucial details you need to know about the probate loan. You should note that the probate loan is processed just like other financial options, where you must reach out to the lender. It’s important to ensure you have the right copy and proof of your inheritance when reaching out to the lender to ensure the process is faster.
