Important Documents You’ll Need For A Hard Money Loan

 

A private money or hard money loan has much lighter documentation than a bank loan. Depending on the hard money lender, some will require more items to close than others. Below is a list of the most common documents required to close a hard money loan:

  1. Purchase contract if it’s a purchase loan. If it’s a refinance loan, you’ll need a payoff statement from the existing lender.
  2. Preliminary Title Report to show clear Title to the property. The designated title company for the loan will provide this.
  3. 2 Forms of Identification if the borrower is an individual. If the borrower is a business entity, corporate documents or operating agreement. A Certificate of Good Standing with the Secretary of the State for the entity can also be required, if borrowing as a business entity.
  4. Proof of funds statement if it’s a purchase loan. The private money lender  wants to see that the borrower has enough funds for the down payment. A recent bank statement or other account statement(s) is usually sufficient.
  5. Proof of Insurance for property being purchased or refinanced.
  6. Optional Items can include a loan application, credit report, copy of lease and/or rent roll if a rental property.

Because each hard money lender has it’s own list of documents required to close a loan, please verify in advance of being pre-approved for the loan. This will save you time and help you get your hard money loan closed more quickly.

To get more information or obtain a pre-approval, click here.

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

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