When you or your client has a loan scenario that is ready for a lender to review, you know that time is of the essence, and you have to move quickly. This is why it is extremely important to present the lender with all the loan information upfront so they can quote accurate leverage and rates, as well as help you move forward in acquiring the property quickly.
Here are some helpful tips on how to submit a full loan package:
Have a Full Understanding of the Loan Scenario
Often, we see brokers reach out to a lender about a specific loan request, without having a complete understanding of the loan scenario. It’s crucial, let me say that one more time for the people in the back, IT’S CRUCIAL, for the brokers to have a clear and complete understanding of the loan scenario. This includes, how much the borrower is looking to request, the borrower’s contribution or down payment, what the funds from the lender will be used towards, the subject property’s value, the borrower’s estimated credit score, if they have any prior real estate investing experience and the borrowers exit strategy, to be able to accurately represent the loan to potential lenders.
Accurately presenting the scenario to lenders’ and being able to answer preliminary questions will help speed up the lenders ability to determine if they can provide funding on the deal and the will be able to issue terms, and commitment letters faster.
Once you connect with a lender that is ready to move forward with funding the loan scenario, be sure to get their specific set of required documentation needed to continue with the loan process. This way both you and the lender can be working on the deal at the same time, speeding the entire process up tenfold.
Get the Good, the Bad, and the Ugly
Loan scenarios, investment properties, and borrowers in our industry aren’t always perfect, which typically is the main reason the investor is seeking funds from a private lender instead of a bank loan.
As the broker, it is important to get an understanding of any adverse aspects of the loan scenario and still present those to the lender. Lenders want to know upfront about any aspects of the deal that may hold up the process because often they can draft exceptions, but these exceptions take time. Don’t wait for when the scenario is in a later stage and then have a bad appraisal or background check ruin the deal. If the lender is already aware of some of the problematic aspects they can either advise to not move forward and waste both your time and the investors, but they also may be able to get an exception which will typically affect the leverage they can provide.
Keep Loan Info/Documents Organized
It is key as the broker to keep your loan files organized. Keeping borrower information, loan details, property information, and all the documents in one location is a great way to stay organized and be able to quickly retrieve information for the lender.
Bridge Loan Network is here to help simplify the lending process and provide you and your lender with an easy place to collect loan documents and borrower information.
Some helpful tips when using our software:
- Make sure loan documents are saved with a clear and concise title. This makes it easier for you and your lender to find documents.
- Let your lender know when you’ve uploaded documents, and make sure you once again have the full list of documents they will need to help speed up the process.