For many people, a hard money loan is the best way to go – especially when it comes to real estate investing. That’s because hard money loans fund quickly (sometimes in as little as 48 hours), they’re easy to deal with, and they’re short-term, enabling the borrower to pay them off quickly and move on to the next investment property.

But do you need documentation for a hard money loan, or can you walk right into an office and borrow tens of thousands of dollars with little or no paperwork?

Here’s what you need to know.

Do You Need Documentation for a Hard Money Loan?

Hard money lenders are typically more lenient when it comes to documentation than conventional lenders are. However, you still need to qualify for the loan.

And while your credit score isn’t as important as the value of the property you’re borrowing against, it still matters.

Hard money lenders require documentation so they can evaluate the type of risk they’d be taking on if they chose to lend to you. They’ll use the documentation to set the loan terms, too, and to protect themselves and their borrowers from possible legal issues.

What’s the Most Important Documentation in a Hard Money Loan?

One of the most important documents in a hard money loan is the appraisal. That shows the lender just how much the property is worth and what it could be worth with the right improvements. You’ll also need other important documents, like:

  • A title report
  • Title insurance
  • A budget for the rehab
  • Government-issued ID

The more documentation you have, the easier your loan approval process will be.

Do You Need a Hard Money Loan?

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