The typical timeframe that a hard money lender can close and fund a loan is between a day to fourteen days, but as each lender has their own requirements and organization it varies from lender to lender. Here are five tips we found can normally help most hard money lenders to expedite your funding, if time is an essence.
- 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.
- Title Company and Title Report: Who is the Title company contact? If you can, get a preliminary title report for the lender.
- Purchase Contract: 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.
- Have Business Documents Ready: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.
- 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.
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