Phone: 240-436-2340
Maryland Hard Money Lenders. Private Loans in Maryland, Virginia & Washington, DC
In our previous blog, we’ve learned about the intricacies of private money loan serving and why private lenders consider it a good practice to establish a construction escrow account. Clear communication between a borrower and a private lender is essential for a smooth servicing of your loan and uninterrupted flow of your renovation funds. Here are three important things that you can do to ensure the success of your private loan after closing.
If you are new to private lending, you might have many questions about hard money loan process. How do you get a pre-approval? What’s a POF? Are you guaranteed to get a loan if you’re pre-approved? Can you get pre-approved if you don’t have a property in mind? Once you go through a hard money loan process, you would understand how easy it is. However, for those who’ve never worked with a private lender before, here is a step-by-step description of our hard money loan process.
The efficient management of construction escrow is an integral part of a hard money loan transaction. The choice of your lender makes a huge difference in how smooth the process is. Many borrowers who are new to private financing tend to focus on what happens before a loan closes and ignore an integral part of hard money financing – loan servicing.
In the previous article, we talked in detail about the tell-tale signs of hard money scams. They might range from advertising unusually low rates to purposefully obscuring the lender’s cost structure. However, what’s more important is to understand how to avoid hard money scams by selecting a reputable private lender, and this is what we would focus on today.
Financial scams are life’s unfortunate reality, and hard money scams are no exception. As the hard money industry matures, the number of entities that engage in questionable ways of doing business goes up. Unscrupulous practices might range from false advertising and interest-rate bait-n-switch to collecting substantial upfront fees and then refusing to fund a loan.
I had a conversation with a potential borrower a couple of weeks ago. She called in panicked: her closing date was fast approaching but her lender has stopped returning her phone calls. Can we possibly help and close her hard money loan in ten days? A ten-day closing is never an issue so I was optimistic that we can ensure a timely transaction. Until we’ve started digging deeper.
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New Funding Resources, LLC
806 West Diamond Ave.
Suite 340
Gaithersburg, Maryland 20878
Phone: 240-436-2340
All loans subject to our review of underwriting criteria and conditions. We reserve the right to approve or deny any loan application based on our sole discretion.
New Funding Resources 