6 Steps To Close a Hard Money Loan Fast


Because every hard money lender has different requirements, it is difficult to say all the items you will need.  However, the good news is that there are standard items you’ll need to close a hard money loan fast:

  1. Find a Good Hard Money Broker: A good hard money broker is your friend because he or she already knows the real hard money lenders from the fake lenders and can steer you in the right direction for a fast hard money loan. This is not to say you should go to your standard mortgage broker for a hard money loan though. A standard mortgage broker is just going to send you to a hard money broker anyway and you’ll be paying double the loan fees because you’ll have to pay the standard mortgage broker a fee for referring you.
  2. Have a Preliminary Title Report ready: A hard money lender always wants to see clear Title to a property before lending on it. You can get a Preliminary Title Report or a “PR” from the Title company that will be handling the escrow for the seller of the property. If it’s a refinance loan, find a local Title company to obtain one.
  3. Get Your Property Documents Together: If it’s a rental property, you’ll need copies of the leases. Apartment complexes will need rent rolls and an Income Statement that shows the income and expenses for the property. Most lenders want to see an Income Statement for 2 years on the property.
  4. Prepare a Short Executive Summary: This is just a summary in 2 paragraphs of what your plan is for the property or your plan with the hard money loan.  The executive summary is just an explanation of the use of funds for the loan and how you will pay the loan off. It can be 1-2 paragraphs. Also, provide 3-4 photos of the property along with the Executive Summary. Two photos of the outside and two photos of the inside are usually sufficient.
  5. Borrowing as a Corporation or LLC? If you are borrowing as an LLC or a Corporation, have your Corporate Articles of Incorporation and your operating agreement if its an LLC.
  6. Proof of Insurance: You will need to contact your insurance agent and obtain a policy on the property if you are buying it. Make sure your agent knows that the hard money lender who is making a loan on the property will want to be listed as either a “loss payee” on the policy or an “interested insured.” Once you have an approval for a loan, ask the lender for the name and address they wish to have listed on the insurance policy. Once this is done, send this to the lender right away, as the insurance is one of the final conditions to close the loan.

Because each hard money lender has different requirements, you may need more items to close the loan. Ask for a full list of items to close the loan from your hard money lender. Get everything on the list and have it ready so you are prepared to close quickly.

Posted by Corey Curwick of Private Money Utah on February 3, 2012

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About the author

Corey Curwick Dutton Corey Curwick Dutton, MBA Park City, Utah - 2005 MBA Graduate with 10 years experience in Business Management including International Management. Corey is a Private Money Lender and Loan Officer. In her spare time Corey enjoys writing on topics in the private money lending industry. She also enjoys hobbies such as mountain biking and skiing in the great outdoors of Utah. Google

  1. 5 Comments

    • jean chery says:

      Hi ! my name is jean, when do the lender need the required documents,before pre approval or after?

    • Corey Curwick says:

      The required documents are needed AFTER the pre-approval or approval.

    • Fiddlewitch says:

      SO, I’m new to this . .. a POF is required to make an offer on an REO. . . so how does one come up with a number to apply for, to obtain the POF . . . it seems a chicken/egg dilemma . . .

    • Jeff Sampson says:

      When i want a loan i have a binder of all documents prepared so when i apply all i have to do is send a PDF of my binder it makes borrowing a snap. If your a borrower like myself just prepare first it makes life so much easier.

    • kathleen says:

      I currently have a home in escrow & will be closing on or before June 30th. The home is “free & clear” and my “lender” is the owner (OWC). I am looking for a short-term loan of minimum of 5k and maximum of 10k. I need the monies for the rest of the fess & costs (i.e. closing costs; escrow fees; etc.) It cannot be a 1st Deed of Trust, rather than a “hard money loan” for a 2nd. I am $4,900 short. I just went back to work after a long illness and make good money. (that is why my FICO SCORE has dropped). I have never had a Bankruptcy; nor a Tax Lien, etc. Can you point me in the right direction. Thank you, Kathleen.

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