A Walk Through The California Hard Money Loan Process

Mortgage and Lending with All California Lending BRE# 01458390

Working as a California hard money loan specialist I deal with a lot of different and unique loan requests.  In addition, the clients we work with are just as different and varied.  A number of clients are working with hard money loans for the first time.  While you can visit our website to learn about California hard money loans, I wanted to put something together that walks people through the process.


The first step in the process is the actual nuts and bolts of the transaction.  We need to determine if the loan request fits with what we are able to obtain funding for.  Different types of transactions require different information, but at the heart of this first step is determining the value of the collateral, the loan request and whether there is sufficient value to support that loan request.  For different projects the questions will be different, but typically after a 5-10 minute conversation we are able to determine whether the loan request is something we can potentially help with or not.


From this point moving forward we are collecting additional information to support that initial conversation and get to know the guarantor or borrower better.  We do require credit reports, although our loans are not typically based on credit (there are some exceptions).  We do also require loan applications and basic personal, corporate or other entity information.  Other typical items we are collecting in this step may include appraisals, budgets for construction or rehab, information on how the loan will be repaid, insurance information, information on the use of the funds, etc.


Once we have the required paperwork we then move forward with identifying an end investor or investment group for the hard money loan funding.  This is the step where we are discussing and finalizing terms, scheduling site visits if they are needed and generally firming up the information we have and the loan we are able to assist with.  Once the due diligence is done and a meeting of the minds has been achieved with regards to final loan terms we are able to order docs.  


Once docs go out to escrow they are signed, notarized and returned for review.  This is the final check on the file where signed docs are reviewed and any outstanding conditions are satisfied.  Once those items are completed the loan is ready to fund and close.


While hard money loans in California are different than many bank products that most people are familiar with, the loan process is similar.  Typically speaking a hard money loan can move through the process much more quickly than a bank, with some fundings occurring in as little as 3-5 business days.  If you are in need of a hard money loan and the collateral is real property within the state of California, please contact us today at 877 462 3422.  We are happy to discuss the options we can provide and answer any questions you may have!

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