Call our Lending Support Line 480-372-8083 to analyze and discuss your deal. We Input your deal details into our deal analyzer (calculator) to see if the projected profit and the needed down payment numbers are acceptable to you. If they are proceed to step 2.
As your consultant we know what lenders fund what deals. We are aware of many different loan options that can be offered to you. Our years of experience has taught us the many questions that lender will ask and how you MUST respond if you want to be approved.
There are 26 questions that must be asked to cover all basis…here’s a few of the main items we will consult with you on.
1) How fast you need to fund your loan, less than a week? or can you wait 30 days?
2) How much money you are working with as down payment. 10%, 20%, 30%? This will make a big difference in the loan process. The less you put down the longer it takes the lender to underwrite your loan.
3) If this is your 1st deal or can you document that you are a seasoned pro. The more deals you have done the better the terms.
4) What documents you will need in order to be approved.
Once we understand all the details associated with your specific deal we can tell you what options we think will best serve your needs. No other company has the experience we have at doing this. We take over 5,000 calls a year and have the answers you are looking for.
If you are ready to pick an option proceed to step 3.
Our consulting agreement is designed to make sure we are on the same page and to make sure you’d like to engage us to be your consultant. Once you approve our agreement you are ready for Step 4.
We are paid a $1,000 consulting fee. NO Processing fee and NO Broker Fee. This is a BIG SAVINGS of $3,000 to $5,000 that you keep as part of your profit.
We consult with you on what lender options we think are the best solution for your deal circumstances. Our lender choice for you is based our years of experience, how fast you need to close your loan, the amount of down payment you have, the location of the property, your credit score and your experience level.
We help YOU submit your application to the lender.
We make sure you understand the timelines associated with you deal and what documents you will need to get your deal funded.
You can call our support line as needed. We will answer any questions you have about the lending process and will even jump on a 3 way call with you and the lender if needed to help sort out any confusion.
What we use to do: (This is the industry norm for borrowers.)
We use to act as a loan broker. We would collect $1,000 deposit that we credited back at the close of escrow (COE) to pay our staff to work on your file.
Once we had your documents we would then place your file with a lender and begin to process your loan based on the lender requirements. Once the loan funded we’d be paid a broker fee of $2,000 to $3,000 (depending on the loan size and the work involved) plus a processing fee of $500.
The lender would have their fees as well which is usually 2-3% or a flat fee of $2,000 to $3,000.
Add up everything and you would be paying $4,000 to $6,000 on a $100,000 loan between lender and broker fees plus the hard cost, of title and appraisal to do the loan.
What we don’t do:
We don’t process your loan – Each lender requires something different, we let the lender do the loan processing and we make sure you have direct contact with the lender.
We are not paid a broker fee and do not perform the role of a broker. You will work directly with the lender.
We will not take a consulting fee if we don’t think you have a very high likelihood of your deal funding.
Here’s what you can expect:
1) We will help you submit your loan application to the lender.
2) You will be required to submit your borrower documents for an underwriting pre-approval.
THERE’S A LOT THAT GOES INTO THIS PART OF THE PROCESS. IF YOU DON’T SUBMIT THE PROPER DOCUMENTS YOUR LOAN WILL BE QUICKLY DECLINED. We will consult with you on this process to explain what is needed and why, along with a lender specific checklist.
Truth be told you will not fully know if the lender will accept you loan until they have these documents. Please note that 10-15% of the time the lenders will come back with something different than what they gave you as a pre-approval. (WHICH COULD BE A HIGHER RATE OR LOWER LOAN AMOUNT.) This why it is SUPER CRITICAL that you have a contingency in your purchase agreement so you can get your earnest money back.
3) Once you have your lender pre-approval which typically takes within 48 to 72 hours you will have lender specific conditions you will need to meet before they will give you a final underwriting approval. This will require you to go back and forth with the lender until you meet those conditions.
Please note that this part of the lending process can be stressful, especially is you are seeking your rehab budget to be included into your loan.