is 4% hard/private money loan too good to be true?

[Yin Choi]

I happen to come across a loan that charges 4% fix, is it too good to be true?

Also, one of the terms is: "Borrower are to provide processing fee of the loan amount upfront after pre-qualification prior to Approval which is to be refunded at the closing of the loan.", is it a normal practice?

[Adah N.]

4% loan from a lender you don't personally know is a red flag. Also "Borrower are to provide processing fee" is another red flag.

You don't typically pay anything from pocket for hard money loans except at closing.