The most common question I get asked for private lending is, “ How quickly can I receive the money?”
In this blog post, we're going to go over how you can get a mortgage within 7 business days using private lending.
TIMELINE OF PRIVATE LENDING:
Day 0
Surprisingly, the most time consuming part of the process happens before the process starts! You need to gather the required documents! Generally, you’ll need to send in your IDs, income documents like pay stubs and tax returns, and consent to pull your credit bureau. Also, if you own a home already, we’ll need details of your property value and outstanding mortgage amount.
Day 1
Consultation and submit mortgage application - Once you have all the information ready, send them in and we’ll review them. At this time, I should be able to provide you with a quote on rates and fees and you can let me know if you would like to proceed. If you wanna proceed, that’ll bring us to
Day 2
We’ll receive a formal offer letter from the lender with terms and conditions for you to sign. Most likely, an appraisal is required so we’ll order the appraisal.
Day 3
After reviewing the formal offer letter and if everything is acceptable, you’ll sign it and supply any other additional documents required. At the same time, the appraisal inspection should be scheduled for today.
Day 4
We’d receive the appraisal report today and if the property value is in line with the application, the lender will proceed with preparing legal documents to be sent to your solicitor.
As a heads up, there can be delays when it goes to the solicitor. You’ll need to work with someone who can get the job done quick. By the end of day 4, you’ll need to have an appointment scheduled for the next day, which is day 5
Day 5
You’ll sign all the legal documents at your solicitor’s office and supply other information and documents such as a bank draft if you’re purchasing a new property and property insurance information.
Day 6
After you’ve signed all the legal documents, your solicitor will forward them all back to the lender. They’ll review to make sure all the required information and conditions have been fulfilled
Day 7
The mortgage is funded - If you’re doing a refinance mortgage, you’ll need to connect with your solicitor to see how you’d like to receive the funds. Generally, they can deposit directly into your bank account or you can go directly to their office to pick up the cheque. Either way, make sure you give your bank a heads up as they may put a 5 business day hold restricting you access to the funds immediately.
And that's how you can get a mortgage within 7 business days using private lending! If you'd like to start working on getting your mortgage, feel free to contact us here and we'll help you right away!