Frequently Asked Questions
What is a 'hard money' loan?
A 'hard money' loan, also known as a 'private money' loan, 'equity-based'
loan, or 'asset- based' loan is based primarily on real estate
collateral. Private lenders fund the loans rather than institutions
such as banks. Since the collateral is sufficient, other borrower
qualifications are minimized. Credit history and credit scores
are not as important.
What is the most common use for hard money?
Construction and bridge loans are what we specialize in but
are not limited to.
Do you cooperate with real estate brokers and other
mortgage brokers?
Yes, if you need a hard money source for a client or other
contact, we will act as lender and you can qualify
for referring broker fees, if you are properly
licensed, and earn
fees as a referring broker,
Do you make hard money loans based on the appraised
value or the purchase price?
We prefer to use the most conservative value. Sufficient equity
is necessary to make the transaction work.
What about prepayment penalties?
We don’t have prepayment penalties.
Do my clients need to pay for anything up front?
We do not require any fees up front. Our fees are taken out
of the loan proceeds at the close of escrow. Occasionally,
the borrower may need to pay an appraisal fee up front when
an outside appraisal is needed. Such fee would be paid directly
to the appraiser.
Who orders the appraisal?
We handle our own appraisals. Usually, we do an in-house appraisal
when the property is typical for the neighborhood and sales
comps are available. If this is not the case, we will order
an appraisal with an independent licensed appraiser.
How long can the term of the mortgage be?
The loan term can be 1 to 3 years.
What fees do you charge besides your points?
In addition to our loan origination fee quoted to you in the
form of points (a percentage of the loan amount), we charge
a documentation, appraisal, escrow, title, inspection and
wire fees. These fees are normally under $2,450.
Do you report to the credit agencies?
No. We do not report payment history or any loan information
to any credit agency.
How long is the loan process?
It typically takes 7 - 10 days from start to finish. You will
receive your pre-approval within 15 minutes, and approvals
within 24 hours.
Will you pull a credit report when I apply?
No. Credit is not necessary for us to make a loan decision.
How do I get started with TCG Financial Services?The starting
point is to apply online by submitting a request for a 15
Minute Pre-Approval.
If you are a broker new to our service, we ask you to call
us.
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