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10 QUESTIONS TO ASK A HARD MONEY LENDER BEFORE APPLYING FOR THE LOAN

1. Do you base your loans on credit scores or on the value of the property itself?
2. Is there a pre-payment penalty?
3. What are your terms? (Points, interest, length of loan, balloon)
4. Does each deal get funded by an individual private lender or do you have a pool of money to draw from to fund deals?
5. What paperwork do you need in place to fund the loan?
   1. Appraisal:
   2. Survey:
   3. 1003:
   4. Other:
6. Can I use my own appraiser or do you have one that you use?
7. How fast can you fund the loan once the documentation is in place?
8. Are repair costs escrowed?
9. How are draws handled?
10. Is there an inspection fee for each draw?
11. Do you have any upfront fees? (The answer you want to hear is "No.")