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. Two 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.
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.