5 Crucial Items Needed To Close a Rehab Loan Faster

[Corey Dutton]

Every lender, whether a bank or a hard money lender, has a list of items they require to close a rehab loan to fix up an investment property. For a hard money lender, here are 5 crucial items that will allow you to close a rehab loan faster:

1. Purchase Contract & Escrow Instructions: If it’s a purchase loan, have these 2 items. If it’s a refinance loan, get a payoff statement from the first lien holder on the property.
2. Bid for Repairs with Photos: It helps to provide photos of the rooms or areas of the property that will be repaired or upgraded, along with the bid for repairs.
3. Basic Loan Application: A 1003 loan application, as it’s usually called, is usually sufficient for the lender to get a financial snapshot of the borrower.
4. Hazard Insurance: Have the policy ready to go into effect at the close of escrow. Provide your insurance agent’s contact info to the lender and to Title.
5. Preliminary Title Report: Whether it’s a refinance or a purchase loan, have a “PR” or a preliminary title report available for the lender unless they choose the Title company.

Because each lender is different, make sure you are aware of the full list of requirements to close the loan with the lender you are working with. This is a short list of 5 crucial items that will help you get to the finish line faster on a rehab loan.