There is much to consider when applying for a hard money commercial loan.
After years in the business, what I have noticed is, the process is mainly in the hands of the borrower. What a borrower does or doesn’t do will definitely determine how long it will take to process a loan.
#1. Waiting too long to submit an application. You want to give the lender plenty of time to close the deal. Also, be sure that the application is completed. A partial application delays the process.
#2. Provide all necessary documentation on time. Borrowers delay the closing process when they don’t provide the necessary documents in a timely manner. If you can provide needed docs within a day or two, this will tremendously speed up closing.
#3. Don’t harass the lender. It is better to carry on with other processes that will affect the real estate investment than to keep contacting the lender regarding the loan closing. The lender undoubtedly has other loans to process. Allow the lender the necessary time to process the documents and contact you when the loan is approved. Every interruption delays the process. Basically, the biggest delay in the lending process actually has to do with elements that are out of a lender’s control. Add title companies and evaluators to the mix and you’ve got the possibility of an even longer closing time. However, assuring that your part is done in a timely manner implements a faster execution. If you’re wanting quick cash with less hassle, contacting a private lender and inquiring about a hard money commercial loan may be in your best interest. Contact our experienced brokers at HML Investments for more information and be on your way to quicker borrowing power and simpler closings today!
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