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» Documents Required for Closing a Hard Money Loan

Posted on 6/8/2005
Avatar Financial Group is not a no-doc lender. We are considered a low-doc hard money commercial lender. We lend money for comemrcial purposes using real estate as collateral. At closing, the following documents must be in your loan folder for funding to take place:
    1. Signed Credit Authorization form
    2. Signed Form 4506 tax form request
    3. Signed Use-of-Proceeds letter
    4. Signed Financial Statements
    5. Signed prior 2 years tax returns
    6. Signed Entity Documents: Corporate Structure Statement, Corporate Resolution, & Certificate of Good Standing
    7. Quick-Sale Value Appraisal ? Avatar will order this
    8. Opinion Letter by borrower's attorney addressing the validity and enforceability, authority of the entity and signers to complete the transaction
    9. Insurance Information - name and phone number of agent
    10. Title Report provided by a national title company
    11. Survey
    12. List of equipment and inventory
    13. Payoff Documents, if applicable
        Don't let the list daunt you. Items 1 & 2 are forms that are provided by Avatar and merely require a signature. Avatar will take care of the appraisal. A call to the bank is all that is needed to get a payoff document. If you bought or are buying property, you will have a title report, survery and probably a list of equipment and inventory already prepared. Review the complete list and make the necessary calls to get the documents as early as possible, so you can get funded as quickly as possible.
        Posted in Miscellaneous