Traditional lenders (e.g., banks, credit unions, etc.) typically accept or reject loan applications based on the applicant’s credit score, income, and other factors. However, if you apply for a hard money loan in Los Angeles, the factors used to assess your application are quite different. For example, the viability of your loan is typically assessed based on available collateral. As a result, you could be eligible for a hard money loan even if you have imperfect credit or unstable income.
Despite the differences between what is reviewed for a hard money loan versus a traditional loan, one is still required to submit an array of documents before your loan application is approved.
Here are a list of essential documents you will need to complete and submit when applying for a hard money loan in Los Angeles.
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Application
In most instances, the document you will likely spend the most time on is the actual loan application. Typically, a hard money loan application will require information about the purpose of the loan, your collateral, your income and so forth.
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Promissory Note
This is arguably one of the most important documents that needs to be completed during the application process. When you sign a promissory note, you are effectively promising to make specific loan payments on specific dates until the loan is paid in full. In addition, the promissory note will provide important details about the rules the trustee must adhere to in order to ensure all parts of the agreement are satisfied.
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Escrow Process
Escrow instructions contain a set of detailed, written requirements that are enforced by an escrow company. The instructions will describe the specific conditions that need to be met prior to your hard money loan officially being closed via escrow.
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Mortgage Loan Disclosure Statement
This document provides you with specific information about the terms of the hard money loan, as well as the costs and fees you will need to pay in order to secure funding.
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Equal Credit Opportunity Act Notice
Hard money lenders cannot discriminate against borrowers based on certain characteristics, including:
- Age
- Marital status
- Ethnicity
- Gender
Hence, hard money lenders are required, under federal law, to provide a notice of these requirements to borrowers pursuant to the Consumer Credit Protection Act.
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Fair Lending Notice
The Fair Lending Notice is a disclosure document that must be provided pursuant to federal law. This notice states the lender’s obligation to avoid certain discriminatory practices.
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Disclosure of Hazard Insurance
This disclosure statement describes your rights and responsibilities regarding the need to maintain insurance coverage on the real estate in order to effectively secure your loan.
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Deed of Trust
The deed of trust is intended to bring in a third party to ensure that both you and the hard money lender meet your obligations and responsibilities, asset forth in the hard money loan agreement. The deed of trust will designate the third party who will be tasked with holding the property deed until the terms of the loan have been satisfied.
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The Use of Personal Information
Hard money lenders typically provide you with documentation explaining how they will use the personal and financial information you have supplied.
Interested in Applying for a Hard Money Loan in Los Angeles? Contact PB Financial Group Corp Today
If you are looking to obtain a hard money loan for a real estate venture in Los Angeles, now is the time for action. PB Financial Group is a premier direct hard money, private money and bridge lender, who has been providing quick funding since 2006 and have funded over 2700 hard money/private money loans. Our objective is to work to satisfy your financing needs on important real estate projects throughout California in an efficient and effective manner. To schedule a consultation or for further information please contact PB Financial Group at 877.700.3703 or visit www.CalHardMoney.com to learn more.
PB Financial NMLS #357614/DRE #01522495
