When you apply for a hard money or private capital loan, you will be dealing directly with your underwriter/lender. The underwriting process tends to be the most dreaded step in applying for any loan because of the seemingly unending paperwork and probing questions, but here are three simple ways to get through this review without a hitch:

1. Submit all requested information promptly and in full. This may seem like it should go without saying, but a lot of time can be wasted by both borrower and underwriter if items are missing/misplaced or have to be requested repeatedly. Borrowers should assume that anything that the underwriter asks for is necessary to make the final decision regarding the loan application and submit it in a timely manner.
2. Be an informed borrower. It will help your application through the review process if you are already prepared for the information that is likely to be requested and if you can show that you have done your due diligence on the property you wish to purchase. If you have questions about any of the requested documentation, it’s better to ask immediately so that misunderstandings don’t slow down the approval of your loan.
3. Disclose any shortcomings upfront. Underwriters, especially those who are private lenders, will conduct their own due diligence of the property that will secure the loan, and it is very unlikely that any shortcomings or unusual situations will escape their notice. Therefore, it is always better to present any such details to them upfront and explain how these will be handled or why they will not affect the value of the property. If the situation can’t be overcome, it’s a good idea to reconsider whether the property is actually a good investment.
4. Respond to communications and requests in a timely manner. One of the appeals of hard money loans is the speed with which they can be underwritten and approved. The best way to get your loan application approved in the most expeditious manner is to make sure that all the necessary information is at the underwriter’s fingertips. It is also important to respond to any additional questions or requests as quickly as possible. This not only ensures that the process continues to proceed smoothly, it also shows your underwriter that you are a responsible person who is considerate of their time and effort.

When you are working with your hard money lender/underwriter, you both have the same goal: to close the loan in an expeditious manner. The better you work together, the more likely that your loan can be underwritten without difficulty. For more information about Montegra’s underwriting process, you can contact us at (303) 377-4181.