Hard money question

[Scott DeLange]

Can someone help me understand the hard money lender process. Theoretically say I found a house for 100k. Lender pays for house + closing + rehab = 125k So to keep the math easy I now have borrowed 125k for a house. And I pay 10% interest on a 12 month loan so roughly 1,040 per month Then I go to the bank an ask for a mortgage for the house ? Is it actually a refi since I purchase the house outright with cash ? So the bank gives me a mortgage on the house an I use that money to pay the lender back an now have a much lower interest on my money. Am I missing anything. Does the bank lend on there appraised value of the house ? So if I needed the 125 but they don't value it at that much I'm in trouble Do they only lend up to a certain percentage of the value of the house Thank you for any help. Havnt used a hard money lender yet but I want to soon to help grow the portfolio