A Step-By-Step Guide to Fast-Track Your Hard Money Loan Application

A hard money loan is one of the best options for seasoned real estate investors who finance big projects regularly. These loans often are for short-term investments depending on the property's estimated value. 

 

One of the biggest advantages of a hard money loan is that it gets approved quickly. However, if you fail to complete some of the requirements, your loan may take time before it’s approved. Let’s take a look at some tips to fast-track your hard money loan application. 

 

A commercial building under construction

What Is A Hard Money Loan?

Hard money loans are loans that are approved against a person’s tangible property instead of their credit score. Banks don’t offer hard money loans, which is why only private lenders can help you in this case. 

 

Hard money loans are short-term loans, meaning they usually have a payback period of six or twelve months. These loans come with a higher interest rate compared to conventional loans, and the borrowers also need to submit a down payment at the start of the loan. 

 

Hard money loans are usually used by real estate investors who invest in big real estate projects and sell them off, like fixing and flipping commercial buildings. Hard money loans usually get approved in a couple of days or more. However, certain mistakes can lead to delays.

How to Fast-Track Your Hard Money Loan Application?

There are several ways in which you can speed up the loan approval process, including:

1. Stating Correct Property Details

In the pre-qualification stage, the lender finds out about the property you plan to invest in and examines it. Stating the right property details, like the address, current value, the estimated value after fixing it or construction, etc., is very important.

2. Filling Out the Application Properly

The actual loan application that you fill out will also need every detail with precision. This is because the lender submits the application to the loan processor, who analyses all the details to evaluate the risk and other aspects of the loan. If there’s a missing detail in the application, the application will be rejected or returned for re-submission.

3. Submitting a Down Payment

Hard money loans are offered after an initial down payment, often higher than down payments for conventional loans handed out on credit history. Make sure you have sufficient capital to pay the down payment to secure the loan swiftly. 

 

A person handing over a pen and documents to another person

 

In case you’re looking for hard money loans provider in Toronto, GCP Fund can help you. 

 

The company specializes in asset-based lending, which means you can get better service, terms, and quicker process times for your loan application. They also offer their services in Edmonton and Vancouver. Get in touch with them and get a hard money loan today!

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