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The hard money loan process goes: originate the deal, get quotes from matched lenders, compare terms, gather borrower documents, submit the application, satisfy underwriting conditions, and close. From initial contact to funded can be as fast as 7-14 days with the right lender and a complete file.
Before you can get a hard money loan, you need a deal. That means knowing your deal type — fix and flip, DSCR, ground-up construction, bridge, commercial — and having the core numbers in hand:
These are not just numbers for the lender. They tell you which lenders to approach and what programs to look for before you ever pick up the phone.
This is where most borrowers waste the most time. A Google search for "hard money lenders near me" returns lenders who advertise their best-case programs — not what your specific deal will get. AI tools do the same thing.
The right approach is to match your deal specifics (type, LTC, state, borrower experience, loan amount, timeline) to lenders whose actual lending criteria align with those parameters. You want the first lender you contact to already fit your deal on paper before you pick up the phone.
Get quotes from more than one lender. Compare them for your client. Present the options in a format that makes sense — a table, a clear summary, a coffee meeting if the deal is complex. The lenders you request quotes from should be the best matches for your borrower's specific situation.
A lender who is interested in your deal will send a term sheet — also called a Letter of Intent (LOI). This is a non-binding document that outlines the proposed loan terms:
Read it carefully. Ask about anything that is not clear. Most term sheets are not negotiable on rate, but some terms — draw schedule structure, prepayment terms, interest reserve — can sometimes be adjusted.
Compare term sheets from multiple lenders on the same deal before committing to one.
Most hard money lenders use one of two submission methods:
Method 1 — PDF Application via Email The lender sends you a loan application packet — a list of requirements and forms to be completed. You fill out as much as possible, then coordinate with your client to complete and sign the rest. Once complete, you submit the full package back to the lender via email.
Method 2 — Online Lender Portal Many lenders now have proprietary portals where you upload documents and fill out the application digitally. This is cleaner and faster than email when the portal is well-designed.
The Third Way — Broker Platforms Some platforms allow deal submission to multiple lenders simultaneously, eliminating the back-and-forth of submitting to one lender at a time.
Regardless of method, a complete file moves faster than an incomplete one. Common document requirements:
Once the lender receives a complete file, underwriting begins. The underwriter reviews the deal economics, borrower profile, property value, and scope of work. They may order an appraisal or a BPO (broker price opinion) for lighter deals.
Common underwriting conditions (stips):
Clear every stip as fast as possible. A file that sits on underwriting's desk waiting for a missing insurance certificate is a file that might lose its closing date.
When all conditions are met, underwriting issues a Clear to Close (CTC). The closing team takes over — drawing up final loan documents, coordinating with the title company, and scheduling the wire transfer.
Be highly responsive during this phase. A document that takes hours to return can push closing by a full day, which can cost a borrower their deal if a seller has a hard deadline.
Closing happens at the title company. The borrower signs loan documents, the title company verifies all funds, and the lender wires the loan proceeds. For purchase transactions, the seller receives their money and the buyer (borrower) receives the keys.
For fix and flip deals, the holdback portion of the loan is not wired at close — it is held and disbursed in draws as renovation milestones are completed.
With a matched lender, a complete file, and a responsive borrower, hard money closings can happen in 7-14 days. Most straightforward fix and flip deals close in 14-21 days.
Deals that take longer almost always do so for one of these reasons:
Front-loading the process — getting a complete file together before submission, using the right lender from the start — is what keeps timelines tight.
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