When you try to research the process involved with gaining approval from a California Private Money lender there can be a lot of confusing jargon, but what’s the process actually entail? What’s the real deal?
There is a process to everything. No matter what it is, someone in the know can sit down and write out a list of how to get from point A to point B, whether it’s changing your car’s oil, fixing a peanut butter and jelly sandwich, or applying for a loan. However, if the process is written with professionals in mind it can be hard for the layman to understand.
This can especially be true for something technical like gaining approval for a loan from a California Private Money Lender.
The Process Made Easy
• Finding a lender: while banks are everywhere and easy to see, that is not the case with private lenders. There are services, websites, and brokers that would be more than happy to connect with someone—but don’t just accept them because they got nothing but five-star reviews online. Ask them for references from current and former clients. Find out how easy/hard they are to work with. Also, contact your country clerk and find out what their foreclosure rate is. If it is above average, you may want to consider going with someone else. You don’t want to choose a California Private Money lender that forecloses on a lot of properties.
• Submit Your Application: This may be the longest part of the process, but if you find the right one, they may be willing to work with you on it and help you get it done properly the first time you turn it in. They don’t want to waste time reviewing incomplete applications as much as you want your application rejected for being incomplete.
• Don’t Leave Anything Out: If you want the process to o quicker and easier, don’t leave anything out. The more complete and accurate a picture the lender has of you, the easier it will be to approve your application.
• Choose A Loan Program: There are several options for you to choose from. Before turning your application in, you should know what sort of programs your California Private Money lender offers and which one will fit your needs the best.
• The Approval Process: Once you get to this stage there will not be much for you to do other than stay available should the lender need something in addition to the materials you turned in. At this time a preliminary title report will be ordered and an appraiser will determine the value of the property.
• Document Review: This does not necessarily refer to looking over your loan documents, but whether there may be any outstanding liens or judgements against you, the property, or the entity under which the loan is vested. The lender will want them cleared so that their lien will have the best position.
• Final approval: Don’t be too eager to complete the final steps of the process. Once the loan has been approved and the documents prepared, take a day to review them and make sure your comfortable with them.
• Settlement/Loan Funded/Documents Recorded: After the papers are signed, the escrow company will make sure the appropriate ones are filed with the county. The lender will also arrange to have the money forwarded to the escrow company who will pay out the loan to you.
Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.