When to apply for hard money

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Hi BP,

I'm a bit confused on how to do hard money. I have only used conventional financing so far. I've trie dsearchign and can't seem to find the answer to my question: when do I apply for hard money? 

I have a lead that I'm wanting to pursue, and while I could go conventional I want to give them the option of either a lower purchase price with faster closing, or higher price with longer closing. If they accepted lower purchase price with faster closing, would I need to go ahead and submit the info to a hard money lender now, or wait until I have it under contract.

Thanks for your help

Hi @Travis Cormier Most hard money lenders (or lenders, in general) will issue you a pre approval if you don't yet have a deal to attach a loan to.  This is also known as a Proof of Funds letter.  You don't have to have a deal to get a pre approval/proof of funds letter.  In fact, a proof of funds letter will help you to be competitive when searching for a deal which is highly encouraged.  You'll have a leg up on those who haven't secured financing.  A good hard money lender will make it very easy to get set up so that when you find a property that you just have to jump on, it's just a matter of submitting paperwork for the deal.  If you would like more info, please contact me!  I'm available anytime!

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