Long-term Financing Loan Process
Important Reminders for your Long-Term Financing Loan Process
NO BRIDGE APPRAISAL
The Catalyst Group at Security National Mortgage Company (SNMC) values our relationships with our clients.
We have deep experience and expertise supporting real estate investors. We ensure an easy transition for clients utilizing short‐term financing (hard money loans) and converting to long‐term financing once the rehab process is complete. To ensure the loan process is smooth and timely please closely review all items below.
If you have any questions or need clarification, please call your loan officer as soon as possible.
HARD MONEY REMINDERS:
- The Borrower Portal is where you will follow the progress of your loan(s), submit for draws and many other great features! You will receive an email invite to create your portal. Once created, your portal is open, and you can access all its features. Please click here to learn more about the Borrower Portal.
- If purchasing a property as an individual (not in an LLC) and your spouse is NOT going to be a borrower on the loan, we will require that he or she signs the Deed of Trust at closing. By signing, the non-borrowing spouse confirms that you are making an investment purchase, which cannot be claimed as a homestead property.
- Catalyst Funding services its loans internally. You will receive additional information regarding the servicing process and how to make your payments shortly after closing.
- We require all accounts be paid via auto-draft/ACH.
- Please go into your borrower portal and enter your banking info 72 hours before closing. This is a funding requirement.
- Payments are deducted on the first of each month.
- Funding will typically take place 24 to 48 hours from the time we receive all executed closing documents from the title company. That includes the documents signed by the seller (which may be closing later than you).
- If any parties are mail-outs or closing via mobile notary, funding may be delayed by the additional days it takes for the documents to reach the title company.
- Work should not start on the property until the transaction has funded. Please follow up with the title company regarding the funding.
- It is your responsibility to coordinate receiving keys from your seller.
Draw Request Policy and Procedures:
- Before submitting a draw request, please be sure to familiarize yourself with the Draw Request procedures. Please click here to review the Draw Request Procedures.
Submit a Draw Request:
- Draws can be submitted online from any mobile device making the process easy and fast! Please click here to learn about Submitting a Draw Request.
- Your initial pre-qualification is based on your credit and the application provided. If the documents provided do not match with your application, it could adversely impact your approval and/or loan terms.
- All required document requests from the loan officer or processor should be submitted no later than 48 hours of request or sooner if specified.
LONG TERM FINANCING REMINDERS:
Credit Report Factors:
- Credit Reports expire within 90 days from the date pulled during the pre‐approval stage. Completing the rehab process within a 60-day window is imperative and greatly reduces the chances of re‐pulling credit from the initial pre‐approval
- Making large purchases, putting additional properties under contract, lifestyle changes, changing jobs, credit inquires, late payments, reducing bank account balances, transferring funds between accounts or any changes to documents provided are just some of the many factors that can alter the credit score and/or loan approval during the loan
- If you are considering a financial decision that could impact your credit, income or assets please contact your loan officer immediately & prior to acting, so that we are aware and can provide guidance
- The number of properties you are qualified to purchase utilizing conventional financing is determined in large part by your FICO score. It is important you do the right things to avoid impacting it
- SNMC has a special Non-Owner-Occupied panel of appraisers selected for their experience and expertise in appraising investment
- During the short-term financing (hard money) process, the borrower(s) will receive an independent appraisal assessing the “After-Repair Value (ARV)” through Catalyst
- After the rehab is complete, The Catalyst Group at Security National Mortgage will order an “As Is” independent appraisal for the conventional long-term
- We cannot guarantee the independent appraiser that completed the Catalyst Funding appraisal will be the same appraiser conducting the Security National Mortgage
- Each appraiser may have different views of a property’s appraised value
- Whether it’s the same or a different appraiser, appraisers must consider recent comparable sales after the first appraisal, which could cause differences from the initial appraised
CONVENTIONAL LOAN REMINDERS:
- During the loan process, borrower(s) will be given various options to lock the rate at their discretion. Please consult your loan officer at Security National Mortgage to discuss rates and time frame
- If the rate is locked by the borrower(s) and the time frame is not met for closing, the borrowers may be subject to new rate offerings and a potential higher rate/cost(s) or extension fees.
- Without a rate lock, rates are subject to change anytime during the loan process and can change by the minute.
- Bottom line – you are empowered and responsible for rate lock decisions. SNMC and your loan officers are merely providing information. The choice is yours
- All funds must be seasoned (60 days in the bank account or be sourced from another account from where it was transferred). Please try to limit the movement of money in accounts as this can increase the amount of documentation
- All large deposits into accounts utilized for a mortgage transaction must be sourced
- Borrower(s) must have adequate funds to purchase and refinance for each and all transactions, along with reserve requirements per Fannie Mae and Freddie Mac guidelines. Your loan officer can go over the amount of reserves you will need based on the number of properties you own and or are purchasing
- If tax return(s) should show net positive rental income on any existing investment properties or this may negatively affect the debt to income qualification for present or future conventional loans
- On the tax return Schedule E, the fair rental days must be accurate
- Any property under contract/pending, must be included into all additional loans within the current process. This will be a direct factor in determining your loan qualification
- You should not put additional properties under contract until you consult with your loan That includes loans you may submit with SNMC or any other lender.
- Multiple loans in progress at one time must all close the same day with Security National Mortgage unless an approval to close loans separately is provided by your Loan Officer.
- If you are closing multiple properties at one time and one rehab takes longer than expected, it may delay your ability to close on all loans