Important Things to Know

Important Reminders for your Hard Money Loan Closing

Catalyst Funding 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 has been completed (with either conventional or non-conventional products). To ensure that the loan process is smooth and timely, our clients must remember a few essential things throughout the loan process.

If you have any questions or need clarification, please call your loan officer as soon as possible.

 

REMINDERS FOR ALL LOAN TYPES:

We can close hard money loans 7-10 days from the date received all of the following: Contract, repair budget, income and asset documentation.  Any delays in providing documents will delay closing.

 

Requested Documentation:  All required documents requests from the loan officer or production partner should be submitted no later than 48 hours of requestAll requested documentation is needed to start & finalize the long-term finance loan, well in advance of rehab completion. Waiting to send documents until the rehab is complete is a problem.  This could adversely impact the loan closing on time and/or affect your overall approval

 

Appraisals:

Catalyst has a special Non-Owner-Occupied panel of appraisers selected for their expertise and    experience in appraising investment properties.

 

Borrower Portal:

The Borrower Portal is where you will be able to see the progress of your loan(s), submit for draws, appraisal payment, and lots of other great features!  You will receive an email for you to create your portal. Once created, your portal is open and you can access all of its features. Please click here to learn more about the Borrower Portal.

 

Closing:

If you are buying this property as an individual and not in an LLC and your spouse is NOT going on this 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 by law. Since Texas is a community property state, our legal counsel has advised us to require this extra step when we have individual borrowers who are married, and their spouse is not already on the loan.

 

Loan Payments:

Catalyst Funding services its loans internally! You will receive additional information regarding the servicing process and information regarding your payments at closing. In an effort to make things easy on you as a customer and ensure more efficient loan servicing overall, we require all loans are set up on auto-draft/ACH.  You will add your ACH information to the borrower portal. This information must be provided in the borrower portal before closing. Payments are deducted in full on the first of each month.

 

Funding:

Funding for your transaction 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 so if they are closing later than you, the “clock” won’t start until they have closed, and we have received the documents. Additionally, if any parties are mail-outs or closing via mobile notary from a remote location, funding may be delayed by the additional days it takes for the documents to reach the title company. Many times, buyers will try to schedule contractors to start work the day of or after closing.  Please understand that typically, your contractor cannot start work until the loan has funded.

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:

With our new borrower portal, submitting your draw request has never been easier

Please click here to learn about Submitting a Draw Request.