Last minute…really?

“I have made an offer on a property and have removed conditions.  Can you tell me what my financing options are?”  This is a statement we hear multiple times a week from borrowers across the country that commit to tranasctions without knowing what financing options they have.

While it may not make sense to you why a borrower would do this please be assured that it happens all the time.  Most borrowers don’t know that a bank or lender needs to:

– Review the transaction details

– Complete their own internal underwriting and due diligence process

– Work with their lawyer to make sure the transaction is funded properly

As mentioned in previous posts, this work can take up to 12 weeks with a Traditional Bank, 6 weeks with a Mid Market Lender and 2-3 weeks with a Private Lender.  Depending on your timeframe, you may qualify for a Traditional Bank but require a Private Lender to close it because there isn’t enough time to close it with a Traditional Bank.  We often see transactions close with private type financing only to be replaced or refinanced later with a Traditional Bank.

If you want to make an easy job seem mighty hard, just keep putting off doing it.  Financing doesn’t need to be a difficult task however if you move forward with a transaction and do not know your financing options you may have to pay a higher interest rate and other costs as a result of not planning properly.

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