Traditional vs. Hard Money Lending

Traditional vs. Hard Money Lending

In traditional lending, the loan officer’s primary role is on the front-end of the transaction. This includes activities such as, but not limited to: taking in the application, discussing loan programs and their qualifying criteria, as well as gathering the income and asset documentation from the borrower. The loan file is then sent to processing, underwriting, and closing staff who see it through to settlement. Lenders, or funding sources, are provided to the loan professional by the company or bank at which the loan officer is employed. 

In hard money lending, the front-end of the transaction is just the tip of the iceberg, as the following processes are often personally managed to get a loan closed:

• Creating the loan package, including the application, income, credit, and asset documents the borrower provides,
• Gathering and reviewing title information as required,
• Ordering payoff and loan reinstatements as needed,
• Providing the borrower with all applicable federal and state disclosures,
• Ordering and reviewing an appraisal or other asset valuation on the property,
• Coordinating title and escrow services,
• Underwriting and approving the file, and
• Creating final loan documents and coordinating the funding with you for loan settlement or closing.

After the loan is closed, hard money lenders may also service the loan for a monthly fee.

Let’s look closer at each step.  

Contract our group to discuss your advantages of going hard money.  

Marie J Fleming 

916-896-9373 

marie@sjmorganple.com 

www.mariejfleming.com