Here are the four forms you need to apply and get your hard money loan started. Rental loans start here too. Rentals will require additional info. Contact Us with any questions.
Broker Agreement and disclosure In short, we’re working for you, and we get paid for getting you approved and funded.
Hard Money Application This gives us the basic information we need to get you matched up with the best loan. It also summarizes what to expect from the process, and lists the docs you will need to submit. If you are asking for a loan under 75,000, we’ll definitely need two years tax returns in addition to the docs on the list. Any loan MAY require tax returns.
Experience in real estate We all know newbies have the highest risk. Fortunately, as you gain experience, we can get you even better rates. The hardest part will be making the initial list of deals you’ve done. Professional rates (75+ deals) are 2-3% lower. It only takes a couple deals to start getting better rates and terms. Track your deals with this spreadsheet.
Scope of Work Template This gives us a general idea of the work you have planned for the property. It is not a substitute for a contractor quote.
PREQUALIFICATION or PREAPPROVAL
We can issue a “Prequalification letter” once we receive your completed application.
For us to issue a “Pre-approval letter” I will need all the documents listed on the application and a copy of your credit report with FICO scores. There are several ways to get these, but they must be FICO. We could pull credit scores for you, but the additional inquiry may lower your score. So we have you pull it, then the final lender will do their own pull.
There are usually 4 total points ($4,000). That includes the broker AND the lender origination fee. Points will vary according to the specifics of the property, borrower, and other factors.
The rest of the closing costs will be typical pass through costs, Closing, Title Co, etc.
The first hard money loan usually takes 3-4 weeks to complete from the time we have a complete application with supporting documentation. The next ones are faster.
We usually only need a BPO, but an appraisal MAY be required in some cases.