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» Closing Documents - Use of Proceeds Letter
Posted on 6/11/2005
Aside from forms which merely require your signature, a Use of Proceed Letter is probably is the easiest item to provide a hard money lender for inclusion in your completed loan package. Create a short letter - you can use the form located in the Commercial Loan Application on Avatar's website at: www.avatarfinancial.com/pdfs/Avatar%20Loan%20Document%20Packet.pdf
Write a short statement of just one or two sentences that indicates what you will use the proceeds of the loan for. Include any payoff of existing mortgages, if this is a refi. If it is a cash-out refi, include a brief overview statement of how those funds will be spent. Statements such as "working capital for XYZ Company", or "improvement of subject property", "inventory purchase to meet existing contracts", etc. are good examples of what Avatar is looking for in this letter. There is no need to get extremely specific or provide a list of exact dollar accounts of the proceeds.
Posted in Miscellaneous
Write a short statement of just one or two sentences that indicates what you will use the proceeds of the loan for. Include any payoff of existing mortgages, if this is a refi. If it is a cash-out refi, include a brief overview statement of how those funds will be spent. Statements such as "working capital for XYZ Company", or "improvement of subject property", "inventory purchase to meet existing contracts", etc. are good examples of what Avatar is looking for in this letter. There is no need to get extremely specific or provide a list of exact dollar accounts of the proceeds.
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