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» Stages of Hard Money Lending

Posted on 1/2/2006

When you submit a hard money commercial loan request at Avatar Financial Group the request proceeds through a series of reviews in order to proceed to funding. Here is what to expect:

  1. Initial review - your request is reviewed to determine if it meets Avatar's lending criteria for size of loan, loan-to-value ratio, property type, etc.
  2. Initial review by the president or CEO of Avatar - at Avatar, qualified loans go directly to the top. Photos of the property, financial statement, and P&Ls on the entity that will support the loan payments are reviewed. If the loan 'makes sense', a Letter of Intent is issued.
  3. The borrower reviews the terms, rates, etc. of the Letter of Intent. If s/he wishes to proceed, the Letter is signed and a downpayment toward the third party costs of due diligence is made.
  4. Avatar proceeds with the due diligence process including an inspection of the property by a senior Avatar staff member, an appraisal review by Avatar's appointed appraiser, financial document reviews, etc.
  5. Once the due diligence process is completed, the funding documents are prepared. Legal counsel for both the borrower and lender review the documents and 'sign off' on it.
  6. The loan is funded.
Posted in Avatar's Loan Criteria