4 pts & 10-12% for 100% funding on purchase price?

[Larissa Luna]

I was recommended to a lender who is willing to pay 100% of the purchase price at 4pts and 10-12% with interest only payments/month and can take a few weeks to close. I will be coming up with the funds to rehab, which the homes I've seen so far have been estimated between 50-70k. In your opinion, would it make sense to use this lender? This will be my first flip so I'm not sure if I should shop around for a lender who might do 80%-85% of the deal with lower points? The 4 points seems like a lot but I'm not sure if this is normal for the terms since I am new to the business. *Just an FYI the person who told me about this lender has never used him before.

Anyone remember their terms for their first flip with a HML?

Also, there is an application form for this lender and it's asking for 2 years past employment history, monthly income and combined housing expenses, and attached a W-9 to fill out. Is this what most hard money lenders ask for?

Thanks in advance for your input! :)