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Updated almost 6 years ago,
Found a private lender, but have some questions about timing
I found someone that wants to lend me money, but he is a first time lender and I am a first time private money borrower. We have agreed on the terms of the loan and everyone is happy. I have an attorney helping with the promissory note and mortgage recording. I understand the basics of that process. Where I have questions is the timing of disbursement.
I would like to use the private money to close which means it needs to be in my account and cleared before closing. The mortgage, which protects the private lender, cant be filed until after closing when I own the property. How is my private lender protected from when he gives me the check to the time the mortgage is filed? Do I have to get the title company involved to hold it in escrow?
Thanks for any advice!