If you're a broker in today's market, you know that money has tightened up dramatically. Hard money has become the new subprime, and many brokers are finding themselves placing hard money loans for the first time. To make things more difficult, hard money lenders are inundated with loan requests. If you don't already have relationships with individual lenders, you need to package your file properly to ensure it gets a fair shake.
All files are going to require the same basics, 1003, credit report, appraisal, signature authorization, mortgage statements and hazard insurance. Make sure you have these items before trying to place your loan. Once you have these items, save them as PDF's, label them so their label matches the contents, and make sure they are clean and legible. If your 1003 looks sloppy or cannot be read, you're going to have a tougher time securing a loan for your client.
In addition to the basics, you really need to put together a loan summary. This does not have to be long, in fact you should try to keep it as short and concise as possible. For SFR transactions, there are a number of important pieces of information that will allow an investor to quickly analyze your deal. Putting it together in an easy to read copy will ensure it goes to the top of the pile.
Additionally, in today's market, you want to ensure your file gets the attention it deserves. With many private money loans to evaluate every day, the hard money lenders won't waste their time trying to make sense of a package put together poorly.
Read the rest of this article on how to package your residential hard money loans.