Let me explain why.
Banks and institutional lenders are potentially set up to provide a fast approval and these approvals are happening faster all the time with the development of online application systems and automated appraisal techniques.
But that’s just covering off the approval.
You still have to get the documents signed, the mortgage registered, and the deal funded.
For just about any institutional lender, the fastest possible process from the time you walk through a lender’s door until money changes hands is two weeks, and that’s lightning fast for a conventional mortgage lending source.
With a private mortgage lender, it is potentially possible to go from inquiring about a mortgage to having the deal funded in two to five business days which is as fast as it’s going to get.
This also requires that you are in a jurisdiction that provides mortgage registration through an automated system otherwise time can be added to the process.
There are a few key things we can point to that makes private lending the fastest possible source of mortgage financing and each has to do with administration and bureaucracy.
In many cases, a private lender is one person and they can make their decision to finance in a matter of minutes if they so choose.
The path to fast closing involves working with a small and focused team consisting of mortgage broker, lender, and the lender’s lawyer.
You could add two more individuals to the team, that being yourself and your lawyer as both will contribute to the completion of the transaction on a timely basis.
With any other type of mortgage financing supply source, there are going to be more moving parts and an assembly line to fit into.
This is inevitably what takes the additional time to complete.
But a small team by itself will still not be able to potentially match the speed required unless the primary players on the team do this on a regular basis.
The reality is the 90%+ of private lenders perform super fast closings. They may be faster than a bank on average, but they are not going to fall into the two to five day window mentioned above.
This is the providence of a mortgage broker, lender, and lawyer that work on a regular basis to complete fast mortgage requests.
The experience, expertise, and commitment to getting a mortgage in place this quickly is not common and can be hard to find.
So make sure that if you need to get property financing in a matter of days that you start working with a qualified group off the hop, or you could miss your deadline.
If you need property financing arranged quickly, give me a call and we’ll discuss your situation on the phone and I may be able to offer a solution right away.
No, the distinction here is not that all private mortgage lenders are fast, but that if you need a mortgage approved and closed in a matter of days then private lending sources are likely going to be your only realistic option. But even then, you will need to be working with a private lender that is in the business of turning things around fast with their lawyer in order to satisfy your time requirements.
And in some cases you may end up having to a premium for speed, but depending on what you need the money for, the incremental cost of capital can be trivial in the big scheme of things.
So back to what makes faster mortgages come from private mortgage lenders?
In a couples of words, less complexity.
When you enter into a mortgage agreement with a bank or institutional lender, you are required to work within a mortgage closing process that is designed to take 10 business days. If the process gets bogged down with some details or the overall system is working through high volume, then the time period you are working with just got longer.
Add to this the fact that several people are going to have to “touch” your file and do something with it before the process is completed. Any time more humans are involved in any process, its likely the process will take longer on average to complete.
With a private mortgage lender who focuses in on faster close mortgage requirements, there are very few moving parts which are limited to the mortgage broker involved, the private lender him or herself, and their lawyer.
All parties are prepared to move quickly and provide priority status to your request due to the timelines you are working with.
In a fast close mortgage situation, the one element that typically will slow down the process is your own lawyer’s responsiveness to your needs.
Yes, there is a higher cost for getting a quick close mortgage in place from a private lender, but when time is short and your deal or transaction are about to run out of time, it can end up being your lowest cost incurred to complete the transaction versus the costs of not completing.
An offer to purchase as limited time left to close.
A property owner is trying to beat the clock on a foreclosure situation.
Funds are required to settle a debt or consolidate loans before some form of negative action is going to be take against the borrower.
Regardless of the reason, money is required through mortgage financing and it needs to be put into place as soon as possible.
This is where we come in.
If you’re really looking for a fast mortgage solution, then you have to consider a private mortgage financing option.
With a private mortgage, from the time of application to funding, we can get the whole process completed in 2 to 5 business days, which is about as fast as it gets for an amount of money greater than $5,000 in the open market.
And while a private mortgage lender is likely your best available option, this may not be very easy to arrange in the time you have for a number of reasons.
First of all, there are only a small percentage of private mortgage lenders that are prepared and willing to move this fast. If you don’t start with one of these select few, you have already wasted time and may not get a transaction completed before your deadline, especially if you have to try more than on lender.
Second, private lenders do not tend to openly advertise whether or not they provide fast turnaround so it can be guess work once again who you should be dealing with.
Third, even if the private lender can move quickly, does he or she work with a lawyer that is prepared to turn on a dime and complete what they have to do to make the process move quickly?
This is where its almost essential to be working with a private mortgage broker that has both experience and a track record in putting fast mortgage solutions in place.
A good private mortgage broker that has a focus in this area will qualify you on the phone and in many instances have a lender offer back to you in a matter of hours or at most the next day.
Private mortgage brokers that do these types of deals understand their lender’s criteria and appetite for not only the type of deal, but the speed for turning things around.
The key here is getting connected with the right type of private lender as quickly as possible and having an experienced private mortgage broker manage the process so that no time is wasted and a fast mortgage solution can be located and placed in the time required.
If you are looking for fast mortgage solutions, I suggest that you give me a call so I can quickly assess your situation and provide fast mortgage solutions for your immediate consideration.
More specifically, a fast mortgage closing through a private mortgage lender will typically only involve the lender, their lawyer, the borrower, the borrower’s lawyer, and a mortgage broker.
While five people involved may seem like a lot, compare that to the mortgage closing process of any bank or institutional lender and you may find that its more like ten to twenty people shuffling the paper.
Not only are there fewer people involved, but all parties on the lender side are conditioned and prepared for a fast mortgage closing requirement.
In general terms, most private lenders will operate under a 10 business day closing schedule, and cannot approve and fund a mortgage in the two to five business days associated with fast mortgage closings.
For a private lender that is prepared to do a fast close mortgage, not only is the lender prepared to move quickly, but they also have a strong relationship with a lawyer who will be prepared to push a fast mortgage closing request to the front of the pile and get the paper work completed, mortgage registered, and funds disbursed as quickly as possible.
The mortgage broker is key to coordinating all the related parties so that their is no time wasted from one step to another and that all communication between parties happens on a timely basis.
The speed of the process is largely dictated by the borrower in that the borrower needs to provide all pertinent documents required by the lender, and the borrower’s lawyer needs to be available to complete his or her end of the transaction.
Because of the focus on speed, a fast mortgage closing will typically be a bit more costly to get into place compared to a bank, institutional, or standard private mortgage. In most cases, the benefits obtained from a fast close mortgage greatly outweigh any incremental costs associated with getting the loan in place.
If you have a need for a fast mortgage closing, I suggest that you give me a call so I can quickly review your requirements, and immediately provide you with some private mortgage options for your consideration.
If we start with the best rates available through a bank or institutional lender, they will promote applying for a rate hold of 120 days so that you can basically get a pre approval in place so that when you’re ready to complete your mortgage transaction, that the process can go as fast as possible and you have some rate protection as well.
While this isn’t really making the mortgage closing quick, its potentially quicker if you didn’t get the process started before you needed mortgage financing.
Banks and institutional lenders will also have fast mortgage or quick mortgage closing options whereby you’re basically offered their very best rate if you complete your mortgage funding within a 30 day period. This is more of an incentive for you to get the best possible rate by staying focused on one lender than it is on making the process go faster.
If time is the key issue meaning that you need to be able to get a mortgage in place as fast as possible, then the only real quick mortgage close option is going to be through a private mortgage lender.
In the private mortgage lending world, quick is two to five business days. That’s about as fast as it gets unless you’re talking about a payday loan or a small consumer loan that can basically be issued in one day, but for very small amounts.
The standard close time for a bank or institutional lender AFTER a loan application has been submitted, processed, and approved is ten business days.
With private mortgage lending, a quick mortgage close from the time of application to the time of funding can be accomplished in two to five business days.
But that’s not going to happen with all private lenders.
In most situations, private lenders, on average, don’t work that much faster than a bank because both have to go through a lawyer to complete the mortgage registration process.
For a true quick mortgage closing, you need to be working through a private mortgage broker, who works with both a private lender that is prepared to react quickly to funding requests, and with a lawyer that is ready and willing to complete the closing quickly.
If you’d like to discuss your quick mortgage closing options, I suggest that you give me a call and we’ll go over the different approaches you can take based on the time you have and your other financing requirements.
For banks and other institutional lenders, 10 business days is pretty much the standard in terms of what you can expect to close a mortgage once its been approved. So the whole process from application to funding with an institutional lender is more likely going to be at least 3 weeks.
With a quick close mortgage from a private lending source, from the time of application to funding, the process can potentially be completed in two to five business days in total.
Outside of some sort of payday loan or cash advance from an established credit facility, a quick close with a private mortgage is arguably the fastest form of financing available anywhere.
In order to have a fast close mortgage option to consider, you’re going to have everything in order for a mortgage broker and private mortgage lender to review quickly so that a decision to fund can happen just as fast, followed by an immediate close coordinated by the lender’s lawyer, working in coordination with your lawyer.
In addition to making sure you have all the property related information and existing mortgage information at hand for a private lender to review, a fast mortgage is also more likely if you are not looking for a high loan to value on the property being offered as security.
For instance, if the loan to value on the property being offered after factoring the funds required is 60% or less, then its more likely that private lenders that provide a quick close mortgage service will be able to assess and decide on your application request quickly.
And when I say quickly, I’ve seen cases where within a few hours of the applicant getting in touch with me a formal commitment was already secured allowing for the deal to proceed to closing.
The key in locating and securing a quick close mortgage is to work through a mortgage broker with private lenders that can move fast and have a commercial lawyer who will move even faster.
Now speed does come with a cost which is going to be built into the interest rate and lender fees, but compared to what types of costs may be incurred or opportunity foregone if a deal is not completed in time, the net costs of a private mortgage may seem small in comparison.
If you are in need of a quick close mortgage and have equity in real estate to leverage, I suggest that you give me a call right away so I can quickly assess your requirements and provide you with relevant private mortgage options for your immediate consideration.