The process of borrowing money is one that you should work hard to understand before taking part in the loan process. Indeed, without a good handle on how money lending and borrowing works, you might find yourself in the tricky position of borrowing money that you find you have a hard time paying off. What’s more, you could get stuck in a money borrowing and lending process that simply does not make good financial sense for your needs. With this in mind, how do you know what to expect from your hard money loans? How can you prepare yourself financially for the loan you are taking on? The first thing you should always do before taking out a hard money loan is to do your research on the private money lender or the lending group that will be financing your loan. Montegra Capital Resources, Ltd. is a hard money lender that you know you can trust to work for your best interest and provide fair loan terms, no matter what. Here is the process that they use when lending money through hard money loans. This will give prospective borrowers a clear picture of the process so that they are better equipped to borrow money should the need arise.
- Submit an application or request: Of course, submitting a formal loan application or request is the first and most important step in getting started with your loan. You can apply for a private capital loan either online or through a phone call to the office.
- Provide the necessary information: It is not sufficient to simply ask for a loan. Explain in detail your loan request and provide any supplementary material that might be necessary for understanding your request as well as for processing it. For example, if you are requesting a hard money loan and have a third party to guarantee your loan, this information will be important to provide as part of your request.
- Term Sheet: If your loan meets the lending requirements, you will be issued a Term Sheet. This Term Sheet will detail the loan’s structure. It will include the pricing as well as all of the necessary requirements for the loan. The Term Sheet will be delivered within a day after Montegra receives all the materials required.
- Commitment Letter: About two days after the term sheet is delivered and approved, a commitment letter is sent to the borrower for signing.
- Underwriting: The underwriting process will begin as soon as the commitment letter has been received. This process is simplified compared to a regular loan and usually takes no more than two weeks to process. This means that the entire process from start to finish occurs within three to four weeks.
You can see how easy the hard money lending process is, especially if you are hoping to borrow money from Montegra Capital Resources, Ltd. Understanding the details of this process from the beginning can help make you a more savvy borrower and help you get a better loan for your needs. Be sure to work with Montegra Capital Resources, Ltd. for all of your hard money borrowing needs!