First of all, a fast mortgage is primarily available through a private mortgage lender.
Banks and institutional lenders are not set up or designed to provide expedited type services to those individuals that are pressed for time in terms of getting a mortgage in place on either a residential or commercial property.
The best source of financing for a fast close mortgage is through a private mortgage broker.
This is the case for a number of reasons:
First, the application through approval process can be completed within a matter of hours at the minimum and 24 to 48 hours at the maximum. For private lenders that are prepared to provide a fast mortgage closing, their is typically only one person on the lender’s side looking at the deal and approving it. So time is not wasted waiting for the deal to pass through several sets of hands.
Second, if there is considerable equity in the property, the lender may not even require a property appraisal or may be prepared to work off of an older one you already possess.
Third, in order to deliver on fast mortgage requirements, private lenders that service this need will be working with a lawyer that is also highly responsive to getting the deal done right away. After all, what good is an approval of financing in a couple of hours if it takes 2 weeks for the lawyer to close the deal?
Fourth, private lenders that provide quick close mortgages, source all their deals through experienced mortgage brokers who know what they require for a fast mortgage closing and only provide deals that fit the lender’s criteria.
Fifth, while a private lender may want to know what the funds will be used for, they are not typically as concerned about the use of funds compared to an institutional lender.
That’s about as fast as it gets in the world of financing.
Yes, if you have established credit at a bank, you may be able to get a small line of credit set up in 5 business days, but don’t count on it. And if you are thinking of applying for short term financing at a bank you currently don’t have a relationship with, there is virtually no chance that any money is going to be available to you in a week no matter how high your credit score is or how much money you make.
The only faster form of financing where you are starting from scratch with a new lender is a Pay Day type loan, but that’s only going to be for the amount of the pay check you present to them.
So while some people may not think 2 to 5 days is fast, in the world of finance that type of time period is lightning quick.
Be highly accessible to answer questions or provide additional supporting documents from the time of application to the point of mortgage closing and funding.
There are far to many scenarios to mention where a fast close mortgage is required, but the most common need is to close a transaction that has a time limit whether it be a real estate deal or some other type of transaction.
Regardless of the reason, if you have a piece of real estate that can be leveraged to secure financing, a fast mortgage through a private mortgage lender is definitely something to consider.