All real estate investors dream of one thing – they wish to close their loans as quickly as possible. Well, you will not be able to close a hard money loan without helping through the process. Every day, you should engage in certain tasks to close the loan. Here are few tips on how to ensure fast and easy closing of loans.
Typically, the longest and most tedious part of borrowing loans would be “Approval”. This is where the lender engages in an array of processes. You should make lots of documents, get them approved and processed. The duration depends on the loan lender and their procedures. Some lenders make the process as simple as possible. This is when loans get approved in less than 30 minutes. However, standard lenders take up to three long weeks. As a potential borrower, you should be ready to satisfy the lender’s requirements & requests. Keep all important document in hand. This will definitely speed up the hard money loan approval process. According to experts, “preparedness” is very important when you want to close loans quickly.
Never hide or keep secrets from your lender. This should be the last thing in your mind. Try to be very open and honest with your money lender. This can improve the speed of approval and quicken the closing process too. Apart from these benefits, withholding critical details from the lender and the application is deemed as fraud. In worse situations, you will not get the loan approved at all. Secondly, your lender will be able to uncover everything about you! Voila, you read it right. Magically, all lenders know how to gather details about their borrowers. Even important public records are pulled out and scoured.
Mortgage pre-approvals have become very famous in recent times. Few years back, this was an under used tool. Nevertheless, you can speed up closing with the assistance of pre-approvals. When you have pre-approvals, you will be able to cut down loan durations by a week or more. Pre-approvals play a very important role in the procedures followed by lenders. The process revolves around many essential tasks (asset/income analysis, check for credit scores, presence of child support and the availability of collaterals). When you have a pre-approval document, you can save the lender from performing these verifications. Consequently, you will speed the entire process.