Step 1: Complete the Initial Application.
The borrower must complete and submit its initial application online for review. If we cannot offer the borrower any loan terms we will let the borrower know immediately and there will be no charge. Otherwise, we will tell the borrower the proposed loan terms or if we cannot provide a loan. If the borrower approves of to the proposed terms, we will send the borrower a loan application to complete and return. After review of the borrower's application, we will issue a commitment letter with the loan terms for the borrower to review, sign and return with a non-refundable commitment fee. We may issue a pre-approval letter upon the borrower's request. The commitment fee will be applied to the lender's closing costs and will be forfeited if you do not close.
Step 2: Document and Title Review
We may require that the borrower provide additional information about the collateral including, but not limited to, the following:
- All documents relating to the collateral including any sales agreement, appraisals, reports, due diligence, etc.
- Any contractor estimates, project timeline, and draw schedule.
- An appraisal and property inspection may be required. You will be responsible for the costs of any appraisal or inspection. These costs will be told to you prior to scheduling and must be paid at the time of the inspection.
Step 3: Closing
The closing can occur after title comes back clean and as long as there are no appraisal, inspection, title or other issues. The borrower is responsible for all loan and closing costs. Proof of adequate and appropriate insurance naming the lender as the additional insured must be provided prior to closing. The title company will disburse the loan funds after proof is provided.
Step 4: Construction Draws
If the terms of the borrower's loan provide that it will be disbursed in installments, a portion of the loan will be held in escrow and disbursed in installments. Installments will be disbursed at completion of each stage of the project. The final draw will not be released until the project is complete. The borrower is responsible for all fees associated with draws.
Step 5: Repay the Loan
The borrower must repay the loan before it is due. Most loans will be due in full 6-18 months from the date the loan documents are signed.