There are many questions in the mind of borrowers by whom a hard money loan has never been availed. If you compare the process of getting a one with that of a bank loan, you will find the former to be straightforward and easier. The processes of hard money = and investment property loan have much similarity to each other. But additional paperwork is needed in the owner occupied process because of government rules and it is also a longer process.
Follow these six steps to get a hard money loan easily and quickly.
Find a local hard money lender
The first way to get one is to find a lender who lends money in your locality. You can search the internet to get to know about such money lenders. You can also visit a local real estate network and get referrals from real estate professionals about a local money lender.
Interview selected hard money lenders
After knowing about some money lenders in your locality, start interviewing them. Call each hard money lender to begin the interview. Go through a brief conversation with him to understand each strategy properly. A rough quote with points and interest rate should be given to you by him.
Select a lender and apply for the loan
The process of hard money is very quick and easy. You have to fill a short personal financial statement about yourself, liabilities, expenses, income, assets, subject property and employment. About 15 minutes will be taken by you to apply for it.
The loan documents will only be ready when you will sign the disclosures. There are certain things that make up the loan documents -
• Payment Guarantee
• Escrow Instructions
• Deed of Trust
• Arbitration Agreement
Wire down payment
When the lender receives your entire signed document, the down payment will need to be paid by the borrower. Once it is confirmed by the escrow that they have received all the documents then the loan will be funded by them.