- Are you a direct lender?
- What information do you need to provide a quote?
- What lending options do you provide, i.e. LTV, interest rates, length or loan, etc?
- How long have you been lending?
Have you wondered just how long it can take to get a hard money loan? In this blog, we will review the timing and how you can help speed up the process. Let’s begin first with understanding a hard money loan. What’s a Hard Money Loan? A hard money loan is a loan secured by a physical asset, in the form of real property. These are short-term loans, and they are funded by private investors instead of conventional sources (banks, insurance companies, etc.). The term of a hard-money loan can last anywhere from one year to five years, and payments are made in monthly installments of the interest on the loan. Since the hard money loan is secured by real property, the amount of money lent to the borrower by a private investor is almost entirely dependent on the value of the property. What is the Timeline to Get a Hard Money Loan? One very attractive element of a hard money loan is how quickly you can get the funds you need vs. a traditional lender. In most cases, you can get your deal funded within a couple of weeks. If you have your paper work in order, you may be able to expedite the process even further. Below, we’ll break down the process of taking out a hard money loan into simple steps: Step 1: Find the Right Lender By doing some research asking around, reading reviews, looking at websites, you can develop a list of lenders to contact. Then when speaking to them, it’s okay to ask them questions, like: