Once you are pre-approved, you are welcome to write offers on houses that you think are good deals. Once you get a contract accepted, here are the steps you should follow.
Step 1: Get Property under contract
Step 2: Initiating Your Loan and Title Process
- What to do: Once your purchase contract is signed, please send a copy to both FasterFunds Lending and your chosen title company. To help speed up the title process, including the seller’s contact details with the title company is often helpful. In addition, please also forward a copy of the signed contract along with your completed Loan Request directly to FasterFunds Lending. We’ll then be in touch within one business day to arrange a convenient time for your property walkthrough – the first key step in securing your private money real estate loan.
- Why it’s important: Providing these documents promptly to both FasterFunds Lending and the title company allows us to efficiently start the processing of your loan and title work right away. This coordinated approach helps ensure a smoother and faster path to closing.
Step 3: Property Walkthrough with FasterFunds
- What to do: The underwriter will call /email you to set up a time to walk through the property. This is a crucial step in our due diligence as experienced hard money lenders and we cannot lend on a property without walking it.
- Important Note: To ensure smooth coordination, please discuss potential walkthrough times with the seller to ensure FasterFunds Lending is able to walk the property.
Step 4: Engaging with the Title Company
- What to do: Proactively check in with the title company to:
- Call in to check on the progress of the title work.
- Identify and address any potential title issues that could impact the closing timeline for your hard money for rentals or flip.
- Schedule your closing appointment.
- Pro Tip: If the title company has multiple locations, confirm your preferred closing location with them.
- What to do: Proactively check in with the title company to:
Step 5: Setting Up Insurance
- What to do: Contact your insurance agent to arrange homeowners’ insurance for the property. This is essential whether you’re utilizing hard money for flips or long-term rentals.
- Coverage Guidance: At a minimum, your policy should cover your loan amount. Ideally, it should also include any additional investment you plan to put into the property.
- Important Mortgagee Clause: Upon approval of the loan, you will get an email that contains information on what insurance policy to get and the FasterFunds Lending’s mortgagee clause. You can send this exact email directly to your insurance provider.
- Prepayment Requirement: Be aware that you’ll need to prepay 12 months of insurance premiums prior to closing.
- Proof of Insurance: Provide FasterFunds Lending with a copy of your Certificate of Insurance 1-3 days before your scheduled closing along with the 12-month paid in full receipt.
Step 6: Keeping FasterFunds Informed
What to do: Let FasterFunds Lending know your if your schedule closing date has changed for any reason.
Step 7: Reviewing Your Settlement Statement
- What to do: When you receive your settlement statement from the title company, carefully review it and clarify any questions regarding the closing costs and the final amount you need to bring. This is crucial for a smooth closing as you don’t want to be surprised with foreign or incorrect charges.
- Payment Method: Ask the title company the acceptable forms of payment. Plan ahead to get a cashier’s check for the exact amount if required at closing.
If any questions arise during this process, please don’t hesitate to reach out to the FasterFunds Lending team.