In a full loan application for one of our Colorado hard money loans we require:
Materials required depend somewhat on the type of loan and type of property.
For a rehab loan on a single family, the following items would likely be required:
- Completed loan application form
- Rehab items/budget (Schedule of Work – we can provide a template, other formats may also be acceptable)
- The real estate purchase agreement contract (and all disclosures, addenda and amendments)
- Acceptable proof of past rehab experience (items may vary).
- Copies of recent tax returns & IRS form 4506T which allows us to obtain an official copy form the IRS for verification [income amounts are not important, primarily verifying identity]
- Under certain circumstances, we may require special inspections or reports (e.g. suspected structural or mold issues, well or septic system etc.) prior to a loan commitment decision. Sewer scope reports are often required for homes built prior to 1982 or built in certain areas. Asbestos tests and report are commonly required, but depend on the scope and type of repairs/renovations. Additional documents are likely to be required if the property will be occupied at the time of purchase or there is a non arms length transaction.
At some point prior to a loan commitment we need to meet all signers on the loan and take a picture of each driver license (or State ID) and do a property walk through.
For a pre-approval application (for a pre-approval letter), we simply require a pre-approval application and id verification through an person meeting.