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. Lending does not necessarily have to be money but can also be anything else of monetary value such as property like cars, houses, and land.
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.
Residential lenders play a very significant role in the society in different way that are discussed ads follows. 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.
Taxes being the main source of income to so many countries, residential lenders play a major role in raising the tax. For example, the interest on business bank loans, is tax-deductible thus an advantage to the government because they deduct taxes from all banks and other lending and financing agencies in the country thus raising revue for the government in the process.
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. Because of the different policies that govern different residential lenders, the different residential lenders provide different forms of lending services to their customers which in turn benefits both the two parties.
Lending companies when opened or started, the need to hire employees arises and as a result they eventually open up large job opportunities to their workers. The presence of business loans offered by residential lenders can be used to start and well establish a new business in the market, and it ends up being successful owing to the funds which can always be repaid later on with an interest, and this is basically an advantage to both the residential lenders and the borrower.