How Same Day Approval Actually Works - The Reality
A very frequent question we get at Hard Money Bankers is ''How does same day approval work?" The reality is, it depends on the lender. If you are dealing with a local lender, they should be able to confirm the project based on acquisition price, construction numbers and address. 90% of the of the deal working should be based on that information. What normally happens is a client calls a national lender and the lender starts asking for W2's, tax returns, credit information etc. This is a sign that you are probably not dealing with a local lender because the local lender is heavily based on assets in their evaluation. There is nothing wrong with this kind of evaluation by the national lenders, but it would be very difficult to get an official same day approval let alone close within 5 days as any local lender should be able to. The next time you have a deal that you are evaluating, shoot us an email with the construction numbers for renovations, address and purchase price. We can give a true same day approval if we like the deal because you know that we are focused on the property. If your lender can't give a firm commitment and a pre-approval letter within 24hrs, you probably want to find a new lender.
Ian Walsh
215.839.3271
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