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.