Now and then a small business may need a little financial help. Especially if they are in the real estate industry. Sometimes a deal can go sour out of the blue and the real estate investor has to pick up the pieces and try again.
Things happen, lenders understand this and attempt to work with real estate investors. Some try to work with the applicant harder than others. While others do not consider the pains of small businesses at all.
Hard Money Loans and Real Estate Investors
Real estate investors typically have quite a few deadlines to meet. Especially, those who make a living by renovating and reselling older properties. They are constantly purchasing properties and looking for potential buyers. It can be a fast-paced career with a lot of decision making.
This is why it is crucial that the investor does business with lenders that understand the ups and downs of the industry. One important factor to take into consideration is the turn around time for loan processing. It matters a great deal how long it takes for a loan application to be processed. It also matters how long it takes for the funds to be transferred into the bank account of the applicant.
Traditional mortgage lenders normally need about 2 months to process a loan application. The typical real estate investor does not have this kind of time. Hard money lenders only take about 2 weeks to process an application. This allows real estate investors to keep their fast-paced agenda in check without any snags.
Business doesn’t stop in the real estate world. So by funds being available, it removes a lot of anxiety from an already tense situation. Nashville hard money loans understand the fast complicated industry of real estate and always ready to assist in any way possible.
To push things along a little quicker during the loan application process. It will be an idea to bring along the needed items. A fee of those items would be:
- photo id
- paystub
- signed 4506-T form
- W2 or 1099 form
Photo IDs are obviously needed to verify that the borrower is indeed who they say they are. Without this verification, the loan process can not begin. Next, are paystubs. Paystubs will show the constant flow of money, coming into the account. Along with a paystub, the borrower will need to present his/her bank statement. This bank statement will reveal all current monies inside of the bank.
Most lenders look for at least 3 backup mortgage payments in the bank. 3 mortgage payments sitting in the bank allows the lender to rest assured that even if the borrower has an emergency they will still be able to pay their mortgage for a while. Nashville hard money loans does extensive checks concerning the account of the borrower. This also, helps the borrower not bite off more than they can chew.
Then finally, there are a couple of forms. The 4507-T form will allow the lender to gather a couple of years worth of taxes. These taxes are needed to help the lender confirm the amount of money that the borrower has been in possession of. When it comes to the 1099, this form is used for business owners to reflect their earnings.
It also shows the amount of child support that is being collected. Obviously, a W2 will be used applicant’s that work for someone besides themselves. Without these forms the financial situation of the applicant will be difficult to assess.
