{"id":1204,"date":"2020-08-14T13:44:35","date_gmt":"2020-08-14T13:44:35","guid":{"rendered":"https:\/\/blog.calhardmoney.com\/?p=1204"},"modified":"2023-06-29T11:39:48","modified_gmt":"2023-06-29T11:39:48","slug":"essential-documents-needed-for-a-hard-money-loan","status":"publish","type":"post","link":"https:\/\/www.calhardmoney.com\/blog\/essential-documents-needed-for-a-hard-money-loan\/","title":{"rendered":"Essential Documents Needed for a Hard Money Loan"},"content":{"rendered":"

Traditional lenders (e.g., banks, credit unions, etc.) typically accept or reject loan applications based on the applicant\u2019s credit score, income, and other factors. However, if you apply for a hard money loan in Los Angeles<\/strong><\/a>, the factors used to assess your application are quite different. For example, the viability of your loan is typically assessed based on available collateral. As a result, you could be eligible for a hard money loan even if you have imperfect <\/em>credit or unstable income.<\/p>\n

Despite the differences between what is reviewed for a hard money loan versus a traditional loan, one is still required to submit an array of documents before your loan application is approved.<\/p>\n

Here are a list of essential documents you will need to complete and submit when applying for a hard money loan in Los Angeles<\/strong><\/a>.<\/p>\n

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  1. \n

    Application<\/strong><\/h3>\n<\/li>\n<\/ol>\n

    In most instances, the document you will likely spend the most time on is the actual loan application. Typically, a hard money loan application will require information about the purpose of the loan, your collateral, your income and so forth.<\/p>\n

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    1. \n

      Promissory Note<\/strong><\/h3>\n<\/li>\n<\/ol>\n

      This is arguably one of the most important documents that needs to be completed during the application process. When you sign a promissory note, you are effectively promising to make specific loan payments on specific dates until the loan is paid in full. In addition, the promissory note will provide important details about the rules the trustee must adhere to in order to ensure all parts of the agreement are satisfied.<\/p>\n

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      1. \n

        Escrow Process<\/strong><\/h3>\n<\/li>\n<\/ol>\n

        Escrow instructions contain a set of detailed, written requirements that are enforced by an escrow company. The instructions will describe the specific conditions that need to be met prior to your hard money loan officially being closed via escrow.<\/p>\n

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        1. \n

          Mortgage Loan Disclosure Statement<\/strong><\/h3>\n<\/li>\n<\/ol>\n

          This document provides you with specific information about the terms of the hard money loan, as well as the costs and fees you will need to pay in order to secure funding.<\/p>\n

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          1. \n

            Equal Credit Opportunity Act Notice<\/strong><\/h3>\n<\/li>\n<\/ol>\n

            Hard money lenders cannot discriminate against borrowers based on certain characteristics, including:<\/p>\n