We make the loan process easy, by educating you every step of the way. By providing you Answers to some of the most Frequently Asked Questions, you will understand the process even better! If you have more questions, contact us directly at 443-738-1626 or by email at info@stewartsachs.com
Please feel free to download and print the following forms:
How do I qualify for a loan?
There are 6 key items which must be considered to determine your qualifications for the loan:
With this information, we can provide a quick preliminary response.
How long does it take to get a response to my loan request?
Typically a borrower can get a preliminary response within 24 hours if the information listed above, is provided up front.
If I am approved preliminarily, how do I proceed with a loan?
By filling out our online loan application also known in the industry as a 1003 and signing a couple disclosures, we are able to pull the borrowers credit report. We will also schedule an inspection of the property and after that, if approved, we will order title work from the settlement agent.
Is my credit important?
Credit is always a consideration in all lending even private hard money loans. The main difference is that more important is the collateral and equity position for the lender. With sufficient equity, even borrowers with less than perfect credit are able to secure loans.
How much money do I need?
Your loan advisor can provide you the best answer to this question, since it basically depends upon the deal. Typically, 10% of the purchase price plus closing costs are required on each deal provided the loan to value does not exceed 65 % of the property value but each situation is unique and we can sometimes arrange financing with more or less cash up front.
Can I use other property I own instead of cash?
Yes, there are many creative ways to blanket or cross collateralize additional properties instead of putting cash into a deal.
What is your loan to value? How much can I borrow?
Every deal is different and considered on a case by case basis. Typical hard money loans are at a loan to value of 50 – 65 % of the property value. The amount that can be borrowed is based upon the equity in the subject property as well as any additional collateral included with the loan.
What is a private hard money lender?
A private lender or hard money lender is a privately held company or individual that acts like a bank and offers borrowers real estate loans on properties that a conventional bank will not.
Are you a broker or are you a direct lender?
Stewarts Sachs & Associates is a direct lender just like a private bank. There are no brokers or middle men involved charging extra fees. You are dealing directly with the source.
What is the advantage of using a private hard money lender?
A hard money lender is able to close a loan much faster than a conventional bank and with a lot less paperwork. They are also able to do loans that a conventional bank would not even consider. In some cases loans can be closed within days for urgent distress situations. One of the biggest advantages is quick, fast decisions made directly by the source.
How long will it take to close my loan?
Typically is takes about 10 business days or so to close a loan. Due to the nature of properties being purchased wholesale, assigned, foreclosures, tax sales, etc., there are frequently title issues that need to be addressed which may require additional time. We have closed deals in as little as 24-48 hours, while other deals will take 2-4 weeks.
Is there a pre-payment penalty?
No.
Is there an application fee?
No.
Can I use my own settlement company?
On a conventional residential real estate loan, the borrower is able to choose their own settlement agent. On private investment loans also considered commercials loans, it is highly recommended to use the agent that the lender works with to ensure proper and clear transfer of title and prompt recording.
How do I get started?
Fill out a 1003 Loan Application and call us at 443-738-1626 to discuss your specific needs.
