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   HARD MONEY LENDING

Hard money Loan funding and loan closing process


paperfree Aditi Bansal 29:14
Published on Monday, May 15, 2017

Getting the knowledge and understanding the funding and the closing process of a commercial hard money loan will provide insight to all parties that are involved and the steps required. Apart from only signing the commercial hard money loans documents to obtain a loan, there are many things that happen during the funding and the closing of a hard money loan.

tags  #Hard Money Loan  #Loan Funding #Loan Closing Process

 

A good commercial hard money lender will assist you in every step of this process until you finally get the commercial hard money loan, all security files have been recorded, and finally the closing of the transaction.

Some of the Parties that are taking part in both the financing and closing processes include:

  • Commercial hard money loan borrower; the legal or individual entity that has the authority to transfer property. In case a person is performing on behalf of any other entity, he or she should issue a resolution that grants authority for one to act on their behalf.
  • Seller; this is the specific legal or individual entity where the borrower will buy the property.
  • Real estate agent; a licensed individual or even an attorney with the responsibility of representing either the buyer, the borrower for the reasons of sales terms negotiation and agreement execution.
  • Commercial Hard money lenders; these are individuals or companies that match you up with the loan investment. They manage your loan application, the processing, countersigning and coordination of financing your new investment.
  • Escrow Company; This is a neutral party that is responsible for collecting and also disbursing the finances as instructed by either you or an investor, and also oversees the signing of the applicable loan documents and deeds and also records these documents with the applicable county office. In several of the states located in the western part of the country are often a separate department and the services are always conducted by an officer in the escrow office. On the other hand, the main responsibility of the escrow officer on the eastern side is overseen by a lawyer.
  • Title Company; gives preliminary title reports on the property used as the collateral against the commercial hard money loans. This is compiled by searching all records from the county and public records against the collateral and the borrower or against the seller.

What Often Happens Before you Proceed to Sign the Loan Documents?

The process of closing your loan will start back at the initial point of the commercial hard money loan lending procedure. The realtor or private lender begins by ordering the title and escrow services.

What Will Happen After You Sign The Loan Forms?

  • The commercial hard money loans lender will transfer the credit proceeds that you have provided to the settlement or Escrow Company.
  • The settlement or Escrow Company then records the mortgages and deeds with the applicable county office.
  • The escrow company then disburses the money
  • The deed company then issues an insurance policy

Although signing and closing the commercial hard money loans process may seem like an easy process, it is not always the case. This is because it takes a lot of effort to get the loan on the closing table. The commercial hard money loans transaction is only complete after the security documents such as the trust deed and mortgages are recorded and after the disbursing of these funds. The commercial hard money loans financing and closing procedure often vary based on the state laws, time, and the county procedures. However, it’s a general rule to distribute commercial hard money loans within a span of 3 days after signing the loan documents.



This page with a focus on Hard Money Loan, Loan Funding was shared by Aditi Bansal.

 
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