How long should it take a HML to respond with an answer?

Question

Hello, my Husband and I are starting out as new investors and are trying to get approved via a Hard Money Lender. However, we applied last week, and still no answer if we are approved or not. Does anyone in the BP community have an idea of how long it takes for HML's to respond with a yes or no? My Husband has called a couple of times and was told that they are still working on it. We have a home that we are interested in and the seller is allowing us to have a look inside tomorrow.. basically giving us a heads up before anyone else. But if we aren't approved, it's almost pointless!

Any help would be appreciated.

Thanks!

Any help would be appreciated.

Thanks!

Tiffany H. · Answer

@Joe Funari, that is what I was expecting at the least; 24-48 turnaround. Anyhow, we will wait a couple more days but will also look for more options. Also, good for you showing the lender that it was a "big mistake" not to work with you! I'm sure that felt great!

Tiffany H. · Answer

@Paul Bowers.. you are right it is never pointless. Just speaking out of frustration, but we are definitely ready for this business as we have contemplated for a few years about doing it. We have finally ready to "pull the trigger", and now it's a waiting game. I guess when the lender says that it could take 24-48 hours for approval, that is what I was dependent upon. However, we will not put all of our eggs in one basket either when it comes to HML's. Thanks!

Joe Funari · Answer

@Tiffany Hernandez Here in the Dallas/Ft. Worth area the HML's i use and refer to other investors usually will respond within 24 to 48 hours. I remember when I first got into REI one HML wouldn't give me the time of day after i submitted my application to him. A year later after I had a few deals under my belt I ran into this HML and basically said "big mistake." Time to find one that wants to help new investors. Check out the BP Marketplace. I am certain one is advertising that will want your business. But don't give up.

Paul Bowers · Answer

First off, it's never pointless to look at the house.  Even if you don't get approved you will be able to watch what the house sells for and when it gets relisted for sale you can look and see what updates they did and how the numbers went. Education is NEVER pointless.  Maybe you can't get funding but if it's still a great deal, get it under contract and wholesale it.

As for the question on the turnaround time, I'm sure every lender is different.  I would think it would depend on your experience, how much skin you've got in the deal and of course the numbers itself.

Also, this isn't the only lender out there.  If they say no that doesn't mean they all will.  If you are willing to give up that easily this may be the wrong business for you.  Hang in there, if the deal is that good, someone will want to be a part of it.