A great question that is often the first one asked!
There are a number of factors that can determine how fast you can get a hard money loan.
This can largely depend on the lender’s source of funding.
Source Of Funding = Speed Of The Loan
A Balance Sheet Lender
If the lender is a balance sheet lender, meaning they have their own capital they lend out, they can determine the requirements of underwriting and funding a loan and can close at their discretion with no other party reviewing the transaction.
This type of lender can close quickly.
At DFW Hard Money we can close as quickly as 24 hours because we control the funds we
originate loans with, and we have the team in place to analyze and move quickly.
A Loan Seller
If a lender is selling loans, they will have to get the approval of the note buyer for any loan
they plan to sell to them. This takes time.
Similarly, if the lender is utilizing a bank warehouse line, they may have to get approval for the
loan they plan to place on that line. This process takes time as well.
Some lenders may have a co-funding arrangement with a larger lender and that larger lender
has to review and approve the transaction.
Again, this takes time.
If an appraisal is required that can delay the closing.
Most lenders require an appraisal.
Project Type = Speed Of The Decision
The project type can affect the closing time.
Is it a simple fix-and-flip residential property that is easy to analyze or a complicated commercial development project encompassing the land development and ground-up construction of the building(s)?
It takes more time to analyze and review more complicated projects.
The Conclusion
How Fast Can I Get A Hard Money Loan? – Few lenders can truly close in less than seven days.
If you find one who can, they will be a good resource for you.
Need some more help? – Get In Touch With Us Today! – We are happy and willing to help!
Here is the page that shows all our other questions
Our Loan Terms – Highlights
DFW Hard Money – Who We Are