Submit Hard Money Loans with Accuracy for Faster Fundings
Most real estate investors choose hard money loans because they close quicker than bank loans. However, the biggest mistake real estate investors make is in the initial loan submissions to their lenders. By submitting inaccurate information about a property or loan request, a borrower slows down the loan approval and funding process.
As a hard money lender, we often receive loan requests from borrowers who are seeking to close their loans in a few days. Because this is such a short time to close on a loan, a hard money lender absolutely must have accurate loan submission information from a borrower. If a street address is missing a number, or the purchase price is stated incorrectly, this can cause a lot of headaches for the lender because it slows down the loan approval and funding process.
A recent example was a trustee sale in which we were contacted by the borrower who purchased the property yesterday and wanted to close today. The borrower submitted the loan request yesterday with the incorrect property address and an incorrect purchase price. We began to underwrite the loan today for immediate approval. We pulled up the property address provided in the loan submission and ran comparables for value based on the purchase price we were given. We thought the purchase price was extremely low for the neighborhood, but we issued a loan approval. Upon receiving the loan approval, the borrower contacted us to say the property address was incorrect and the purchase price was also not correct. After comparing the loan submission that the borrower initially gave us with the loan approval form, the borrower quickly discovered that he had submitted the loan information to us incorrectly.
By submitting inaccurate loan information to a hard money lender in your loan submission, you can quickly cost yourself a lot of time and money. If you want to close a hard money loan fast, submit the loan information with accuracy!
Posted by Corey Curwick Dutton
