Investors: 5 Steps to Close a Hard Money Loan Fast

 The typical timeframe for a hard money lender to fund a loan is between 1 day to 14 days. But each lender has his or her own requirements for funding a loan, so check with your lender. There are five basic items that will help you close a hard money loan quickly with your private money lender:

 

1. Use a Hard Money Broker: Not your mortgage broker but a dedicated hard money broker who has a ton of sources for loans, and not just one lender. In most cases, you won’t get a better deal if you go directly to the source anyway. Save yourself time by using a good hard money broker, not your mortgage broker.
2. Title Company and Title Report: Who is the Title company contact? If you can, get a preliminary title report for the lender.
3. Provide a purchase contract to the lender if it’s a purchase. If it’s a refinance loan, get a payoff statement from the current lender.
4. Borrowing money as a business entity? Have all of your business documents including Articles of Incorporation, EIN#, Operating agreements, and Certificate of Good Standing. Some lenders will require more business documents, so check with your lender.
5. Proof of Insurance: Find out the lender’s “mortgagee clause” and give it to your insurance agent to put on the policy. Then provide your lender with the insurance dec page that shows the lender listed as the mortgagee on the policy.

 

As I said before, it is crucial to obtain a full list of items needed to close a loan with a lender. The faster you get all of those items submitted to your lender, the faster you will close the loan. To read more about hard money and private money loans, check out our ‘Hard Money 101’ blog at the following link: http://privatemoneyutah.com/hard-money-101/