First of all, if you are looking to obtain a Arizona Hard Money Loan but aren’t familiar with the process, take a deep breath. This is most straightforward and painless loan process in existence. This article will cover all the steps you need to take to get funded through a hard money lender.
1. Find lenders— You can use a hard money lender from any part of the country. You can find many lenders online and everything is done online. But, if at all possible, you want a local lender. You can find local lenders through word-of-mouth, networking at local real estate investor functions or simply preform a Google search. Make sure you find a few and then meet with them individually.
2. Have a conversation— Once you have narrowed it down to a handful of lenders, look into what terms they offer. You can usually find this information on their web site, however you will always get more information from speaking to them. The first part of the conversation will be concerning the borrower’s loan request. The lender will ask a series of questions to determine if they can fund the request. After the lender gathers the information necessary they typically can give a contingent approval and a preliminary quote. This quote is composed of the interest rate, points and any fees (such as processing or underwriting) they will charge. The next part of the conversation will be the borrower asking important questions. Some questions a borrower ought to ask a potential lender are: How long do you take to fund? Do you impose prepayment penalties? How long have you been in hard money lending? Are you a direct lender or a broker?
4. Down Payment and Escrow— After all documents have been received the borrower will send their down payment (if one is required) to escrow. As soon as escrow has verified, they have everything needed from the borrower the lender will fund the loan.
There are numerous reasons to obtain a hard money loan:
1. You credit score is not high enough and your income doesn’t meet traditional lender’s requirements.
2. You don’t have enough capital to cover the renovation of the property.
3. You have a property investment but don’t have time to wait on a bank loan process.
4. You want to purchase a Arizona Fix and Flip property.
5. You don’t have enough cash to purchase a property.
How do you determine if a Arizona Hard Money Loan is right for you?
If you don’t have the time to wait for a bank loan or your credit has declined, a Arizona Hard Money Loan can fund you and get that property in your hands quickly.
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.