Avatar's Blog
» How a Hard Money Loan Gets Funded
Posted on 11/19/2005
Hard money lenders generally want similar information when funding
loans. Intiially, they are looking for photos of the subject property,
profit and loss statements (P&Ls) , and generally a personal
financial statement on the borrow/guarantor.
Once the lender has reviewed these documents and spoken with the broker or borrower about the loan, if the lender approves the loan at this first stage, they issue a Letter of Intent. The borrower will be asked to sign the Letter of Intent and will be asked at that point to make a down payment toward the costs of due diligence. In the case of Avatar Financial Group, only the third party costs of due diligence (the costs which are outsourced, not performed inhouse).
When the lender receives the funds and the signed LOI, the due diligence process begins. Depending on the lender, the process takes anywhere from a few days to a month or more. Avatar Financial Group closes loans in an average of two weeks. When time is critical, shorer closing times can be arranged.
Posted in Avatar's Loan Criteria
Once the lender has reviewed these documents and spoken with the broker or borrower about the loan, if the lender approves the loan at this first stage, they issue a Letter of Intent. The borrower will be asked to sign the Letter of Intent and will be asked at that point to make a down payment toward the costs of due diligence. In the case of Avatar Financial Group, only the third party costs of due diligence (the costs which are outsourced, not performed inhouse).
When the lender receives the funds and the signed LOI, the due diligence process begins. Depending on the lender, the process takes anywhere from a few days to a month or more. Avatar Financial Group closes loans in an average of two weeks. When time is critical, shorer closing times can be arranged.
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