In a full loan application for one of our Colorado hard money loans we require:
Required application materials depend 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 for extensive rehabs.
If any of the borrowers are entities ownership and governance agreements( e.g. operating agreements, by-laws, resolutions, shareholder agreements)
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 reports are may be required, but depend on the scope and type of repairs/renovations and when the building was built. 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.
If there is a tenant, then lease agreements and payment history information may be required.
At some point, prior to a loan commitment, we need to meet all human borrowers, take a picture of each driver’s license (or State ID), and do a property walk-through.
For commercial buildings, recent roof inspection reports and/or other structure or equipment reports may be required depending on the building and other particulars.
For a pre-approval application (for a pre-approval letter), we simply require a pre-approval application.