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Hard Money Loan Process (5 Steps)

Let’s take a look at DFW Hard Money Loan Cycle:

1. Hard Money Loan Process – Application and pre-approval:

Start by applying online for a DFW Hard Money loan with our free, no-obligation application

A team member from DFW Hard Money will call to discuss the application shortly after it has been received, followed by an email with additional requirements needed for pre-approval.

DFW Hard Money pre-approvals are good for 90 days. 

Bank statements will be utilized to verify funds from personal and/or company accounts. 

If the borrower is an entity, all individuals involved in the entity will need to apply for approval.  A tri-merge credit report will be pulled encompassing the scores of each bureau. 

Credit scores can impact points, interest rates, and cash to close.

2. Contracting and closing the property:

Next, send the property details to DFW Hard Money for internal review. 

A terms sheet will be sent to the borrower for approval and signature. 

Once the borrower has approved the terms sheet, a title request will be initiated with the title company or closing attorney.  No third-party appraisal or survey is required on single-family loans.

DFW Hard Money has a third-party builders risk insurance policy in place, ensuring a smooth closing with no delays.

Before closing DFW Hard Money’s Draw Manager will approve the borrower’s scope of work for the property, helping to make the drawing process easy for the loan life cycle.

3. Begin the work and draw requests:

Once closed and funded, repairs to the property should begin immediately!  Draws for work completed may be requested in amounts as low as $5,000 per draw. Draw requests can be submitted here.

When received, the Draw Manager may reach out for additional information or questions.

[Tip: Send all pictures and receipts of work completed and access information for an inspection! The percentage of work completed and materials used will be reviewed and compared to the work remaining.  After approval the draw payment will be initiated to your account.]

4. Sell or refinance:

The next step is to list the property for sale when the project is complete or contact a bank or mortgage company to get the refinance into a permanent loan underway.

5. Payoff the loan:

When it’s time to pay off the loan, the title company or closing attorney handling the transaction will submit a Payoff request through DFW Hard Money’s Accounting department.

All funds will be distributed including a wire for payoff to DFW Hard Money.

That is our Hard Money loan process. For any questions on the hard money loan process and the loan life cycle, please reach out to our team.

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