The Lending Process

If you are preliminarily approved, we will ask you to provide additional information and documentation including, but not limited to, the following items:

• Copy of Sales Contract and any deposit check(s)

• Copy of Driver’s License

• Detailed list of proposed repairs and draw schedules, including material and labor costs and copies of any contractor estimates or contracts

• Copies of any appraisals or inspection reports of the Property

• If you are an entity borrower, you will need to provide copies of all your corporate documentation.

• Addresses of any cross-collateral property, if any

• Upon preliminary approval, you will be asked to pay for any 3rd party costs including property valuations, credit reports, inspections, etc. The amount of this fee will be disclosed to you ahead of time.

Upon receipt of all documentation, title to the property will be ordered and examined and, if required, a valuation and/or property inspection will be ordered. The inspector will contact you directly to set up a day and time for inspection. Payment for the valuation and/or property inspection must be paid at the time of inspection and is non-refundable. You will be told the cost for these inspections at the time the appointment is set up with you.

Assuming there are no appraisal, inspection, or title issues, loan funds will be made available to you through a closing/settlement with a title company, after you have provided evidence of General Liability Property Insurance in an amount equal to the total loan amount. If you are doing rehab work, you may be required to obtain a Builder’s Risk Policy, and if the work is being done by a contractor, he or she must provide a copy of their General Liability Insurance and Proof of Workmen’s Comp Insurance. You will be responsible for all closing and insurance costs. If you are in the negotiation process, we encourage you to get the seller to contribute as much as possible toward closing costs. The lender will not care and it will keep your costs as low as possible.

If your hard money loan is a rehab/construction loan, you will most likely have to establish a construction escrow with the Lender. Our lenders generally require 3-4 draws. At each completion phase, you must call us to have a property inspection arranged. Once approval is obtained and/or the mechanic's lien waiver executed, the lender will release the draw. The final draw is never released until the project is completed. You will be responsible for construction draw inspection fees, which are generally low. These fees must be paid either at time of inspection, or sometimes up-front at settlement.