Loan Process
is the asset that is being placed as collateral we also consider other criteria when underwriting or brokering a loan, especially
the borrower’s ability to service the debt for the term of the loan.
Our hard money loans are interest only and a credit report is required. Although a credit score is not a deciding factor in underwriting, other items on a credit report might be. In underwriting we look for tax liens, judgments and an overall clear
picture of how a borrower manages credit and how we will get paid back.
Some of the critical areas that we look for include:
1. Is there a clear and identifiable exit strategy in place?
2. Is the Executive Summary well written, straight forward and conservatively estimated?
3. What is supporting the valuations—such as a recent appraisal or credible broker price opinion letter?
Thank you for submitting your loan application with us. At HP Investment Group we are committed to providing you with the highest level of service and satisfaction. As part of our ongoing efforts, you'll be receiving regular status updates from us showing the progress and current status of your loan.
Please review the following items that we need immediately in order to complete the transaction in a timely manner. We want to meet your closing date!
6 STEPS IN THE HARD MONEY LOAN PROCESS
Lending Process For A Quick Hard Money Closing
1 Application: Fill out our quick on line application for a fast reply back. We will review it and get back in touch with you for pre-approval.
Pictures are important for us to get a feel for the property and tell a thousand words. Please send us some pictures and/or videos of the property along with street views looking both ways so we can get a feel of the neighborhood area. We will also need inside pictures of all the rooms and pictures of the rear of the subject property.
2 Site Visit : If the property is in the Austin Metro area we will often drive to the home and run some comps so we can assess our interest first hand. We usually like to meet the borrower on site to answer any questions we might have concerning the condition of the property, etc.
3 Letter of Intent: After reviewing the property and your loan application we’ll issue a letter of intent stating the terms and conditions of the loan for preliminary approval. If these terms are agreeable to you we will need an application fee to go forward which is credited back to you at closing.
4 Inspection & Appraisal: Before Inspection, we require a complete scope of work. Please fill out and submit via email the Scope of Work Spreadsheet found here (note—this is one of the forms mentioned on another page). Be sure to include written bids from your General Contractor and/or Sub Contractors. NOTE: Once the Loan has closed you CANNOT deviate from the "Approved" Scope of Work without prior written approval. If you do you will be solely responsible for any increase in costs over and above the original approved items and their associated costs.
Inspection & Appraisal must be paid for in advance and you must have scope of work available for appraiser if you have not already provided one to us. Once we receive the letter of intent back we will order title and appraisal. We always order a new appraisal from one of our approved appraisers. The appraisal is always prepaid and you will need to pay the appraiser with either cash or a bank check—or use PayPal to pay us...and we will forward payment to the appraiser. The appraisal fee is non
Survey: If you have been provided with an existing survey we need to know right away. Otherwise, we will order a survey from title immediately and you will be charged for it.
5 Loan Term Sheet When final numbers are agreed upon, a Loan Term Sheet is sent to your email outlining the final loan offer. This email will also include a link to our website for payment of the doc prep fee of $495.00. You must sign and return Loan Term Sheet and submit the payment for doc prep before HP Investment Group can send closing documents to title. Additional Forms
A) Title Insurance: All closings will require a lenders insurance title policy providing evidence that we will be in a 1st lien position. We will always order the title policy from one of our preferred title companies. It can take anywhere from 3 days to 3 weeks to get a title commitment back depending upon the county records availability.
B) ACH Form – HP Investment Group requires monthly payments be deducted directly from your bank account. This is also how funds are sent to you when a draw request is made.
C) Home Warranty - at a cost of $350-$400. HP Investment Group will order this warranty. It will be charged to you on the closing statement.
D) Survey: If you have been provided with an existing survey we need to know right away. Otherwise, we will order a survey from title immediately and you will be charged for it.
E) Insurance Binder: Vacant Dwelling or Builder's Risk Coverage with Theft Riders must cover loan amount (at a minimum).
We require a Declarations Page and an Invoice. Your agent should fax this to us immediately.
6 month policy must be paid in full. It is not required to be paid until closing.
6 Closing: Loan document fees for our attorneys to begin work to prepare loan docs have to be paid in advance and can range from $750 for a simple hard money single-family residential loan to several thousand for a complicated commercial loan with several entities and properties involved.
