One of the biggest attractions of hard money loans is the speed with which they can be closed (often in only two weeks) compared to the months that it can take to obtain a commercial loan from a bank. Hard money lenders such as Montegra Capital Resources require less red tape than conventional lenders, enabling them to get the money to you more quickly and efficiently. But even hard money loans can take longer than may be desirable to close if you don’t have the right information ready to hand over to your lender. Here are some tips to ensure that your loan request gets processed speedily:

1. Request a full list of the required documentation. This list will vary slightly from lender to lender, so make sure to ask your hard money lender what documents they require when you make initial contact so that you can be fully prepared when you submit your application. Typical items on this list will include a personal financial statement, rent rolls (if the property is income-producing), cost estimates for any planned improvements, and a property value assessment or existing appraisal of the property.
2. Don’t provide more information than necessary. While it’s important not to hide anything from your hard money lender, inundating them with superfluous information and documents will only slow down the approval process rather than speeding it up. It’s important to sort through the information you have about the property and only provide that which is relevant (and required) to your hard money lender. They will let you know if more information is needed.
3. Be upfront with your lender. If you’ve already been declined by another lender, tell your hard money lender about it (along with the reasons for the rejection). If there are any potential issues with or concerns about the property, you should also share these with your lender from the beginning. Not sharing such issues can make it look like you’re hiding something. By anticipating their concerns, you show yourself to be an honest individual with whom they want to work.
4. Respond promptly to communications from your lender. Playing hard to get won’t get you a hard money loan. You should be quick to respond to any requests or other communications from your lender. Show them that their time (and money) is valuable to you.

If you’re interested in applying for a hard money loan on Colorado real estate, contact Montegra Capital Resources at 303-377-4181 to get a full list of the documents we require.