Most consumers have been through the process of a personal mortgage application and understand the myriad of documentation required. But preparing for Hard Money Loans in Arizona is not quite the same process nor are the documents the same.
If you are new to the real estate investment arena, it is wise to begin your search for Hard Money Loans in Arizona or at least a hard money lender, prior to finding your first property. This will allow you to ask questions about the lender’s processes and documentation requirements before time becomes critical. And even if you have completed a few projects but are thinking of finding a new lender, this process is still a good idea. Having a go-to hard money resource can be a game changer when you locate a great property and need to move extremely quickly to secure the deal.
In general, there are a few documents that will help you to move past the prequalification stage of Hard Money Loans in Arizona. Most lenders want to see a few months of personal bank statements and they want to verify that you have a credit score of about 550 or more. If your score is lower, then you might need to be willing to negotiate terms such as a higher interest rate or paying additional points at closing. But this basic information will get you set before you have a specific property in mind to purchase. This is also the time to submit a list of your prior work and projects. This simply lets the lender know that you have the experience needed to get the job done and turn the profit needed to repay a hard money loan.
Once you have selected a property, you can begin to compile the remaining documentation that the lender is going to require. The first document is going to be your scope of work for the project. This is a detailed list of all of the renovation needed to get the property ready for resale. In addition, adding tie estimates and a rough schedule will add to your credibility as a project manager. You can also include an appraisal if you have had one done, but understand that the lender is required to have an appraisal completed, but that you will be paying for it. So paying twice is not always wise if you have a good idea of the property value. Finally, you will need to provide the purchase price of the property and the details of the transaction to the lender.
Your Costs for a Arizona Hard Money Loans
As mentioned above, the lender is going to require that you pay for the appraisal of the property prior to approval of the loan request. But in most cases, there are not a lot of other fees that you are asked to pay prior to being approved for Hard Money Loans in Arizona. If the lender asks for a large sum of money upfront, beware of a scam and seek another lender.
At Closing
Once you re approved an are preparing to close on the loan, there will be additional fees that you will need to be prepared to pay. These fees could include some administrative fees or they are sometimes called funding fees or processing fees. In addition, the lender will require you to pay points on the loan and some request a larger down payment as well. Your lender should provide you with an itemized accounting of all of the fees that you must pay prior to the closing and funding of your loan.
Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.
© 2016 Level 4 Funding LLC. All Rights Reserved.Copyright | Privacy Policy | *Terms & Conditions
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.