The Loan Process

What are the steps and the process for obtaining a hard money loan?

• Submit all necessary paperwork for review (underwriting)

• Loan approval

• Scheduling the closing

• Sign the necessary documents and have the loan funds provided to the seller at said closing.

Simple. Time to underwrite the loan: 3 business days on average. Time to schedule the closing: 2 business days on average. Average time to close a loan, 5 business days.

The nitty gritty is in putting together the necessary paperwork. One of the items which may be necessary is an appraisal; valuation of the property in its current and/or ready for sale condition. Time to obtain an appraisal report: 5 - 10 business days. Another long lead item is the title report; property description, ownership, and history information. Time to obtain a title report and a clean title: 5 - 10 business days. Items, in addition to IDs, Operating Agreements, bank statements, property insurance, etc., without which underwriting will not begin.

During underwriting missing/incomplete information may be discovered, and there may be “conditions” which need to be satisfied; additional information provided to have the loan approved. This adjusts the process to; order the appraisal and title report, collect all necessary documentation while waiting for the reports, submit all documentation for review, satisfy underwriting conditions, loan approval, closing scheduling, and finally loan closing. Average time to close a loan; 10 - 15 business days.