Hard money loans are short-term financing options that can provide you with the funds needed to purchase real estate quickly and efficiently. But how long does it take to acquire one of these loans? In this blog post, we’ll discuss the timeline associated with hard money loan applications and what you can expect when applying.
The Application Process
The application process for a hard money loan is usually much faster than traditional financial institutions. For example, when applying for a bank loan, the average time it takes from start to finish is around 45-60 days. With a hard money loan, however, you could receive your funding in as little as one business week. Of course, this timeline depends on how complex your loan package is and how many documents need to be reviewed by the lender. It can also depend on the availability of your lender and how fast they process loans. You want to be sure to work with a lender with a quick reputation and good reviews. Working with the best lender can ensure that you are guided through the process in a timely manner.
The Underwriting Process
Once your application is submitted and all required documents are received by the lender, they will begin their underwriting process. This part of the process involves reviewing all of your information thoroughly before deciding whether or not they can provide you with a loan. Depending on the size and complexity of your loan package, this process can take anywhere from a few days to a couple weeks. During this time, it’s important to remain in contact with the lender so that they know you are serious about acquiring a loan.
Closing The Loan
Once all of your documents have been reviewed and approved by the lender, you will be ready to close on your hard money loan. Closing typically happens within just 7-10 business days after approval has been given—a far cry from the months it can take when applying for traditional financing options! Once you are funded you can then apply the loan to your project and get the ball rolling for your investment.
Acquiring a hard money loan can be an efficient way to get access to capital quickly. While some aspects of the process may take longer than others depending on various factors like size and complexity of the deal, overall, it’s much faster than going through traditional banking institutions—you could receive funding in as little as one week! If you’re looking for quick financing options for real estate investments or other projects, consider applying for a hard money loan today! Time is a pivotal factor when it comes to real estate investing and you don’t want to wait around for funding and lose out on a property or big opportunity.
FlipCo Financial provides fast lending for real estate investors to get funded for their investments. Contact our team of experienced hard money professionals to find out more about our loan terms and offerings. Call us today or fill out our contact form.