If you are close to foreclosure or cannot find a traditional lender who will meet your odd financing requirements, you can consider getting a hard money loan. A hard money loan is simply a short-term loan secured by real estate property. Hard money lenders offer loans that traditional financial institutions can’t: they move quickly and lend based on collateral instead of credit scores. The loan terms are usually around 6 to 12 months and can be borrowed on almost any type of property including single-family residential, multi-family residential, commercial, land, and industrial.
If you have sufficient equity in your property and need fund quickly, follow these 6 easy steps to get a hard money loan easily and quickly:
1. Find A Local Hard Money Lender:
Find trusted hard money lenders like Magna Capital Group, Inc. who lend money in your locality. You can Google it or visit a local real estate network and get referrals from real estate professionals about a local money lender. Magna Capital Group, Inc. is a leading hard money lender in California, provides hassle-free equity-based private and hard money loans for residential and commercial properties. For more information, you can call at (310) 734 4044 or email at email@example.com.
2. Interview Selected Hard Money Lenders:
This is the second important step after getting some hard money lenders in your locality. You can call each hard money lender to begin the interview. Go through a brief conversation with them to understand each strategy properly. Here are some important questions that you can ask hard money lenders in order to choose the best one:
a) how much experience do you have?
b) are you a licensed lender?
c) can you show me your references?
d) how do you fix your interest rate?
e) how fast you can approve my loan application?
f) how much LTV can you offer?
g) what types of loans do you offer?
By asking these questions, you can get a good sense of the lender’s services and criteria, helping you to find just the right one for your investment property.
3. Select A Lender And Apply For The Loan:
On the basis of your interview, you can select one of the best hard money lenders from your list and submit your loan application. The process of a hard money loan is very quick and easy. You have to fill a short personal financial statement about yourself, liabilities, expenses, income, assets, subject property and employment. It will take few minutes to apply for a hard money loan.
4. Sign Disclosures:
5. Sign Loans Documents:
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
6. Wire Down Payment:
After signing all the documents, you will be asked to pay down payment. Once it is confirmed by the escrow that your hard money lender has received all the documents then the loan will be funded to you.
The Bottle Line:
If you are a real estate investor with great buying opportunity but cannot get fund from anywhere, you can apply for hard money loans to secure the financing you need. These six simple steps can help you to get your hard money loan approved quickly and smoothly.
A private hard money lender like Magna Capital Group, Inc. can fund quickly within a flexible structure and without prepayment penalties that can unintentionally hinder the success of your business. For more information about hard money loan or our loan programs, please feel free to us at (310) 734 4044 or Email at firstname.lastname@example.org.