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Top 10 Questions To Ask A Hard Money Lender When Applying For A Loan!

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Category : Commercial Loans , Hard Money Loans , private money lenders , Residential Loans

A hard money loan is one of the easiest and fastest financing options to fund your real estate deals, but it’s also more important to select the right kind of hard money lender for your needs. This will help you to avoid getting into a bad situation with a hard money lender who isn’t able to deliver what you need or adds extra junk fees to the loan at the last minute.

Here are top 10 questions you must ask when seeking out a hard money lender and submitting your hard money loan application:

1. Are you a certified lender?
Make sure that the hard money lender is licensed. If a lender is licensed and state approved, that individual is bound to follow state-mandated rules which provide customer protection. Their license ID should be displayed on their official website and any advertising material they produce. One example is the Magna Capital Group, Inc., you can see license IDs in the bottom of its website www.magnaloans.com.

2. How much experience do you have in hard money lending?
It is best to choose an experienced hard money lender for your project. An experienced hard money lender that has been in business for years, they can understand the cyclical nature of the industry and suggest you the best loan for your real estate investing business.

3.Do you have references from previous borrowers?
You can ask hard money lenders to show their reviews and testimonials by their previous satisfied clients. A reliable hard money lender should not hesitate to give references of their previous satisfied borrowers. The lender may have reviews or testimonials on their own website or third party websites.

4. How do you fix your Interest Rate?
The interest rate completely depends upon the Lender. They determine interest rates by the property type, risk analysis, and your credit rating. Generally, hard money loan interest rates are range from 8% to 18%, but there is greater flexibility in hard money loan rates for quality borrowers.

5. Are there any other charges that will be applied for obtaining the hard money loan?
Some hard money lenders quote interest rates and points and then conveniently wait to inform the borrower of other documents, origination or processing fees. So make sure to ask hard money lenders about all the charges which affect the total cost of the loan.

6. What loan to value(LTV) can you offer?
The LTV is the funding amount a lender provides on the basis of the existing value of the property. The LTV can vary from lender to lender and property type. Some hard money lenders lend on the after repair value (ARV) as opposed to the more conservative current value or purchase price.

7. What types of loans do you offer?
Some hard money lenders are specialized in a particular loan category, while others have a broad loan portfolio. So make sure you select a lender that is more accustomed to a broad loan offering and aligned to your project’s needs.

8. Is there a prepayment penalty?
It’s not uncommon for lenders to charge a small prepayment penalty which means a minimum amount of interest must be paid on the loan. In many situations, the prepayment penalty will not affect the borrower in any way. If there is a prepayment penalty, the borrower must make sure it works for their proposed timeline.

9. How long of a loan term is available?
Hard money loans are normally for short-term use only. Generally, hard money lenders offer 1 or 2-year terms but some lenders may also offer 1 to 5-year terms. Longer the term can lead to increased costs or interest rate. So you must make sure your timeline works with the lender’s loan terms.

10. How long will it take to fund the loan?
It’s important to know how fast your loan can be funded. Hard money lenders should be able to approve and fund a hard money loan within 2 weeks. Magna Capital Group, Inc. can fund hard money loans within 3-5 days in some cases if the funding is necessary to save a deal.

The Last Word:
Choosing an experienced and reliable hard money lender is a very important task in order to make your real estate investment project success. 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.

Magna Capital Group, Inc. is one of the most trusted hard money lenders in California, provide hassle-free equity-based private and hard money loans for residential and commercial properties. We understand the most complex hard money loan scenarios and provide asset-based hard money loans to real estate investors, builders, property owners. individuals, corporations, LLC’s, partnerships, trusts and other legal business entities. For more information about our Hard Money Loan Programs, Call Us Today at (310) 734 4044 or Email at info@magnaloans.com.

Take a Local Approach to Hard Money

Category : Uncategorized

There are a lot of options when looking to get a hard money loan .Commercial mortgage
brokers can feel overwhelmed in knowing who to trust and where to go to find the best option
for their clients. 
It’s easy to choose or partner with a national lender because of their excellent programs and
extensive reach. Arranging a hard money loan through a local partner, however, may be the
better option in many cases. A local hard money lender is someone who lives close by, can be
on-site within a few hours and can meet clients face to face. Unlike national lenders that deal
with everything via fax or phone, local lenders can be there in person to help your client along
the way. 
Local hard money lenders are not affiliated with any banks. key reasons why choosing to work
with one of these specialty lenders is the right option for a commercial rehab or fix-and-flip
project. These reasons include the lender’s speed, extensive knowledge, varied partnerships
and valued support.

Mortgage Preparation Checklist

Category : Real Estate Loans

If you are thinking about doing a mortgage, it always helps to know what documents
the mortgage loan originator will require from you. So here is a quick list to get you
started on your new mortgage loan.

Find Income Tax Return copies for last two years

Find W2 forms for last three calendar years

Find business (C-Corporations, S-Corporations, Limited Liability Companies,
Partnerships) Income Tax copies (if Self-Employed) for last two years.

Find K-1 forms for last three calendar years (if Self-Employed)Collect pay documents (one month’s worth of pay check stubs, a Social Security,Pension, Annuity AwardLetters, adoption stipend stubs and/or county printout of child support payments received)

Collect asset documents (two months most current bank statements for all checking,
savings, and money market accounts, last two statements received for all IRAs, 401Ks,Stockaccounts,and Annuities,
HUDs from recent property sales) Note that state, county and federal retirement accounts for current employees do not count as assets.

Collect situational documents (Divorce Decree, Bankruptcy discharge letter and list
of creditors,

leases for Rental Properties, Tax Appraisal notices for Rental Properties,
Homeowner’s Insurance

Declarations Pages for Rental Properties, proof of payment for Judgments, Tax
Liens or collections.

Obtain statement of Whole Life Cash Value (if applicable)

Find Survey (if Refinancing and in a state that uses surveys)

Find Homeowner’s Insurance Declarations Page

Write down the names, addresses and telephone numbers of all landlords for the
past two years

Write down the name, address and telephone number of the Human Resources
department for all jobs.

Simple Guidelines To Find And Apply For A Mortgage Loan

Category : Real Estate Loans

Planning to apply for a home loan mortgage? If yes, then there are two important things that you need to be careful about. In most of the cases home mortgage loans are applied for to make obligations for any house that an individual is planning to purchase. As few individuals cannot afford to purchase a house from cost instantly, they acquire a loan to help them spend it out.

Home loans can be provided by banking institutions, personal loan companies or other banking institutions to an individual looking forward to purchase a house. But it is not so simple to get the loan as you are also required to pass through certain requirements to make sure that you will be repaying the cash due.

Few loan providers are lenient as compared to the others but could be rather expensive in the long run. You have to be wise in a situation like this. It is obvious for the lenders look for alternate ways of earning money in case you do not pay back to them.

Once you have the best idea of the loan you want to apply for, it’s your decision in order to determine if you’re able to pay the actual mortgage repayments long-term. You can use a mortgage loan calculator to calculate your monthly mortgage repayments. It can also help you calculate general mortgage payments taking into account the interest price you will pay for, income taxes and the insurance. Mortgage calculator makes it easier for you to determine that the loan is achievable or payable or not.

Purchasing a house is not an easy thing to do, especially for those who have a poor credit score. If you have less credit scores, then in most of the cases, your loan does not get authorized. If the loan doesn’t work, you should go about choosing a less expensive house to purchase

Tips to Get Approved for a Home Mortgage Loan

Category : Mortgage Loans

1. Know your credit score
It literally takes a few minutes to pull your credit report and order your credit score. But
surprisingly, some future home buyers never review their scores and credit history before
submitting a home loan application, assuming that their scores are high enough to qualify. And
many never consider the possibility of identity theft. However, a low credit score and credit
fraud can stop a mortgage application dead in its tracks.
2 Stay at your job
I know someone who quit working seven days before she and her husband were to close on their
mortgage loan. I have no idea why, and unfortunately, it didn’t turn out well for them. They
weren’t able to close on their new home and they lost out on a great deal.
Sticking with your employer while going through the home buying process is crucial. Any
changes to your employment or income status can stop or greatly delay the mortgage process.
3 Pay down debt and avoid new debt

You don’t need a zero balance on your credit cards to qualify for a mortgage loan. However, the
less you owe your creditors, the better. Your debts determine if you can get a mortgage, as well
as how much you can acquire from a lender. Lenders evaluate your debt-to-income ratio before
approving the mortgage. If you have a high debt ratio because you’re carrying a lot of credit card
debt, the lender can turn down your request or offer a lower mortgage. This is because your
entire monthly debt payments — including the mortgage – shouldn’t exceed 36% of your gross
monthly income. However, paying down your consumer debt before completing an application
lowers your debt-to-income ratio and can help you acquire a better mortgage rate.
4. Get pre-approved for a mortgage
Getting pre-approved for a mortgage loan before looking at houses is emotionally and financially
responsible. On one hand, you know what you can spend before bidding on properties. And on
the other hand, you avoid falling in love with a house that you can’t afford.
The pre-approval process is fairly simple: Contact a mortgage lender, submit your financial and
personal information, and wait for a response. Pre-approvals include everything from how much
you can afford, to the interest rate you’ll pay on the loan. The lender prints a pre-approval letter
for your records, and funds are available as soon as a seller accepts your bid. Though it’s not
always that simple, it can be.

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    Tel: (310) 734 4044
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    8730 Wilshire Blvd., Suite 410
    Beverly Hills, CA 90211

    Although Magna Enterprises, LLC and Magna Capital Group, Inc. are referred to throughout the text of this website as Magna Group of companies, they are not affiliates, parent or subsidiary companies as both companies are separate and distinct entities. Any questions or issues regarding this disclaimer should be addressed in writing c/o Shawn Molem.

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