Hard Money Lending

[Ron Perry]

I’ve heard horror stories of borrowing money from hard money lenders. Much of what I have heard of horror stories comes down to being scammed into paying fee’s before you receive the money.

What should a hard money lender be looking for, and asking you for, information, such as I.D., Home address, bank account information, social security number. When if at all should these be answered before you have to worry about identity theft, or just losing out on your “fee”.

[John Matthews]

@Ron Perry Some hard money lenders will charge you an application fee to get in their system, though in Philly, only 1 does out of the 4 or 5 that I've spoken with.

That said, they will want to run your credit, they'll likely want to see past taxes, paystubs. Some will ask for bank statements. They'll likely need SSN and EIN, and tax returns and that's "it".

The only fees you should pay before the deal closing are appraisal, inspection and potentially an application fee. I'd definitely ask around if anyone has worked with them before, and get referrals (and call!) if not to substantiate their existence.