Our Hard Money Loans Are Designed to Get You Funded Fast & Easy. Take A Moment to Learn More About How They Work
Before you decide whether or not a hard money loan is right for you, take some time to learn about them and their benefits. The first step is to spend some time with us so we can get to know you and the loan better. You can call us or visit our office and talk with one of our experienced Loan Officers. Below is important information on the steps involved with getting a hard money loan and what happens after you’re funded.
What’s The First Step in Getting A Hard Money Loan?
If you’re interested in getting a hard money loan, there are a few things you should do. Firstly, you need to talk to an expert about how they work. Since there are quite a few differences between a hard money loan and a traditional one, you should know what they are before you get started.
Secondly, you should call us or come in and visit with one of our Loan Officers. They’ll ask you questions about the loan and your current situation to get a better understanding of how a hard money loan will help.
Finally, fill out an application. The application process for a hard money loan is quite easy and generally requires less documentation than a traditional loan.
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Questions We’ll Ask
Although hard money loans were based on the equity in a property at one time, recent laws mandate we document your ability to repay a loan. Because of this, you’ll need to show proof of income and we’ll need information about the property, but overall, it’s an easy process.
Some of the questions we’ll ask you are:
- What is your reason for the loan? Is it a purchase or refinance?
- Where is the property you want to buy or refinance located?
- Do you have an idea of the value of the property?
- If you’re purchasing a property, what is the purchase price?
- If you’re refinancing, what is the balance owed on the property?
- How much money do you have in the bank
- What is your monthly income?
- Can you verify your source or sources of income?
- Do you know what your credit score is?
Thinking Outside the Box
Because we want you to get a loan, we don’t look at your individual situation and needs the same way a conventional lender does.
For instance, our qualifying ratios are not the same as regular banks, we look at your credit differently and base our loans on common sense. Try to get that from a traditional lender!
We’ve worked with hundreds of different Borrowers over the years. And almost every one of them has needed something local banks wouldn’t give them.
We don’t have a box you have to fit into. Regardless if you have circumstances on your loan that other lenders won’t listen to – tell us about them. We want to help!
After You’re Approved
Once we’ve reviewed your application, personal info, and property information in full, we’ll submit the details to our portfolio of Investors. Next, our Investors will go over the loan parameters and one or more of them will choose to fund your loan.
After an Investor is chosen, your loan application and documentation are prepared and a Closing Packet is sent out for signing by yourself and the Investor(s).
As soon as the documents are prepared and signed by all parties, the Investor(s) wire money to escrow. Then escrow sends the funds to your account or gives you a check and the loan is considered “funded.”
Servicing Your Loan
Now that your loan has funded, it will be “serviced” by a bonded & insured servicing company who specializes in collecting monthly payments from Borrowers.
There is a small monthly service fee collected by the servicing company which is part of your total monthly payment. For this, they handle most of the aspects of your funds and payments for the life of the loan. For example, the servicing company handles things like:
- Collecting monthly payments from Borrowers.
- Disbursing taxes & insurance, as well as, HOA fees to the appropriate recipients.
- Depositing funds to the investor(s) on the loan.
- Sending the year-end tax statement of the amount of interest Borrowers have paid for tax purposes.
- They will provide a verification of payment history if you decide to get a conventional loan.
- Lastly, when you’re ready to payoff the loan, they’ll provide all figures and required documents to the Investor, title company, etc.
Finally, you can learn more about our Underwriting Guidelines for Hard Money Loans here. Proudly Serving: Nevada, California, Arizona, New Mexico, Texas, & Colorado – NMLS #372157