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Before you submit to any hard money lender, ask these questions. The answers tell you whether their program actually fits your deal, whether their timeline works for your contract, and whether they operate professionally enough to get you to the closing table. A lender who cannot answer these questions clearly is a lender who will create problems mid-deal.
"What states are you currently licensed and actively lending in?"
This is the first question. If the answer does not include your property's state, the conversation ends here. Geographic licensing is a hard requirement — no exceptions.
"What deal types do you fund?"
Fix and flip, BRRRR, ground-up construction, bridge, multifamily, commercial — lenders specialize. Confirm your deal type is in their program before going further.
"What are your minimum and maximum loan amounts?"
If your deal is $90,000 and the lender has a $150,000 minimum, that lender cannot fund it regardless of deal quality.
"For a borrower with [X completed deals] and approximately [Y FICO], what LTC do you typically offer on [this deal type]?"
This is the most important program question. Do not ask what the maximum LTC is — ask what it is for your profile. A lender offering 90% LTC for experienced borrowers may cap first-timers at 75%. Know what you will actually get before investing time in their process.
"Do you charge Dutch interest or non-Dutch interest on your renovation holdback?"
This affects your total financing cost significantly on deals with large renovation budgets. Dutch = interest only on drawn funds. Non-Dutch = interest on the full committed amount from day one.
"What is your typical timeline from a complete application to close?"
This matters if your purchase contract has a deadline. A lender who says "10-14 days" and means it is different from one who says it and delivers in 21. Ask for a recent example of a comparable deal and how long it took.
"Is your underwriting done in-house?"
In-house underwriting is faster and more controllable than outsourced or correspondent underwriting. Correspondent lenders must conform to their purchasing institution's guidelines and timeline, which adds time and reduces flexibility.
"How do you handle draw requests? What is your typical inspection-to-wire timeline?"
For renovation loans, draw speed affects your cash flow and your contractors. If the lender takes 7 days from draw request to wire, your contractor needs to float that cost. Know this before you are mid-renovation waiting on funds.
"What documentation do you need for a complete application?"
Get the full list upfront. Submitting an incomplete application slows everything down. Know exactly what is required and have it ready before you submit.
"What are the total points on this loan — origination, broker fee, and any other charges?"
Rate is visible; total points are sometimes buried. Get the complete fee picture before comparing lenders.
"Is there a prepayment penalty or minimum interest period?"
If you are doing a fix and flip and the property sells in 3 months, a 6-month minimum interest period adds real cost. Know this before you close.
"What does an extension cost, and is it available?"
Projects run long. Confirm extension availability and cost before you need it.
"What is the inspection fee per draw, and how many draws are included?"
On a 5-draw renovation at $250/inspection, that is $1,250 in draw fees. Not deal-breaking, but it belongs in your deal analysis.
"How many loans have you closed in the last 12 months?"
Volume indicates an active, operational lender. A lender who has funded 200 deals in the last year has a functioning machine. One who struggles to answer this question may not.
"Can you provide 2-3 references from borrowers on recently closed deals?"
Professional lenders have closed deals and can connect you with satisfied borrowers. If they cannot provide references, that is information.
"What happens if something changes in underwriting — if the appraisal comes in differently or a condition arises late?"
How a lender handles problems tells you more about the experience than how they handle smooth deals. A clear, calm answer to this question indicates operational maturity.
You should not have to ask a lender whether they can fund your deal type in your state at your LTC — that should be established before you reach the conversation stage. Broker Cheetah's matching platform filters the lender universe to deals that fit your parameters before you engage any specific lender, so the conversation starts from a confirmed fit rather than from scratch.
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