Step 1 – Prequalification:
You’ll be pre-screened by a member of our hard money lending team to go over questions that will help determine if you’re a suitable candidate for a hard money commercial loan
Step 2 – Documentation:
Once you’re pre qualified, we’ll let you know the documentation we need to help you continue with the loan. These documents include a verification of your initial application, as well as a business plan laying out your intentions for your investment.
Step 3 – Terms:
After you’ve submitted all necessary documentation, we’ll work with you to finalize loan terms including interest rate, LTV ratio, down payment, points, closing fees, and your loan repayment schedule.
Step 4 – Property Inspection:
Once all the loan terms have been finalized, we will appraise and inspect the property to ensure that you are purchasing the property near, at, or below market value. If no major problems come up and you’ve done the due diligence on your end, the loan will move on to closing.
Step 5 – Closing:
After all other steps have been completed, we’ll begin securing the necessary funds to help you invest in your commercial property. Funding can be expected in as little as 1-3 weeks depending on the situation.
Congratulations, you now own a commercial property!
How to maximize your odds of qualification
At Hard Money Lenders IO, there are a few factors that successful loan applicants share. Factors you can control in the short term include having a solid business plan, identifying a strong property in an attractive market, having paperwork ready to go, and doing your due diligence on questions that may be asked of you. While researching your investment, it will be helpful to use our hard money loan calculator to do your homework and work out the baseline financials of your deal.
In the long term, factors like good credit and experience will help you secure better financing terms, but a lack of these will not disqualify you from successfully securing a loan.