First Time Hard Money Loans Don’t Have To Be Hard. Read These 3 Tips.
Here’s Your Essential Checklist of Important Items to Consider Before You Get Your First Hard Money Loan For A Real Estate Purchase
Is this your first time getting a hard money loan to purchase real estate? Make sure you are prepared with the most basic information you’ll need to get a yes or no. The upfront requirements of bank loans are so different from private money loans, so never assume you know what a hard money lender will require for a loan approval, especially if it’s your first time using this type of loan. Here are 3 essential items to consider when getting started:
1. Basic and Most Relevant Property Information:
If you have a specific property you are seeking to purchase, be prepared with basic information to provide to the lender such as:
- The Value of the property: Make sure you know a ballpark number for the present and/or future value of the property.
- Purchase Price for the Property.
- Basic Description of the property, e.g. How many bedrooms or units? How many bathrooms? What is the total square footage, the lot size, and year built. If there are leases, provide a description and the dollar amount for each lease.
- Property Address
2. How much cash do you have available to put towards the purchase?
- If you are purchasing a property, do you have any cash to bring in as a down payment?
- Or are you seeking 100% financing with no down payment?
3. Do you have experience investing in real estate?
- Some lenders will want to know if you have previous experience with real estate in the area where the property is located.
Because a hard money loan is so different from a bank loan, there are very different requirements for each. Whereas a bank may require more information about the “person” borrowing the loan, a hard money lender may require more information about the property being used as collateral for a loan.
Make it easy on yourself when applying for your first hard money loan.and pay attention to the three essential items above. You’ll be glad you did.