How to get a hard money loan in 24 hours
Every day someone approaches me and they wanna close a loan quickly sometimes in 24 hours. So how do you close a loan quickly in 24 hours or in say a week. Well I’m going to tell you what you need to close a loan quickly. So what do you need to close a hard money loan quickly?
1. The Purchase Contract
If it’s a purchase you need a copy of the purchase contract. And that’s the entire purchase contract. Any addendums that have been signed together with that contract need to be provided to the lender as the full contract. So make sure you have a copy of the entire contract ready for the lender.
2. Preliminary Title Report
Number two you’re going to need a title report a preliminary title report. The lender is going to want title insurance on their loan on this property. So you if you don’t have a preliminary title report ready to go. Make sure you have at least the title companies contact information that the lender will use to then offer that a preliminary title report to prepare for the closing. Number three, escrow, escrow contact information. In some states that title and escrow is the same company so in some states you don’t need to worry about this third item.
3. Title & Escrow
This third, this third requirement to close your Hard Money Loan quickly. But in some states the title company and the escrow company are two separate entities. So make sure you have the contact information for the escrow company that will be handling the escrow part of your transaction and give that to the lender so that they can set up the closing and the funding with the escrow company as well.
4. Access To the Property
Typically a lender is going to want to know what is the access to the property. Can I get in and do an inspection? Is there someone in there? and it’s not possible to access? I’m going to need to do a drive by? What is the access information? Is there a realtor that’s going to let me in? Are you going to let me in? Provide the access details, access information to the lender immediately as well so the lender can coordinate a site visit or a walk through to view that property.
5. Property Value
What is the property value? That is going to be the lenders primary question in this whole approval process. If you have a comparative market analysis (CMA), give that to the lender. If you have a broker’s price opinion or if you have an appraisal that’s already been performed. give that to the lender immediately so the lender can satisfy the value question. Which is typically one of the biggest questions that a lender is going to have. What is the property value and how do we prove that.
6. Down Payment
The last thing you are going to need to get your hard money loan closed quickly. Know what your cash to close requirements are going to be. Is the lender going to require some form of a down payment? Are you having to cover the loan fees or any other closing costs? If it’s an auction are there any auction fees any transaction fees that you’re going to be responsible for? So know what are your cash requirements going to be to close on this loan.Don’t be taken by surprise at the 11th hour when the lender tells you you need to bring in $12,852.63 and you have only $5,000 .
Hopefully this video has shed some light on the items that you’re going to need to close your Hard Money Loan quickly.