Every loan that we make goes through our lending process. Whether you are a borrower or are interested in investing with us, get to know the steps we take to ensure we are investing in successful projects.
Pine Financial’s Lending Process
1. Complete Pre-Approval Application Online
Head over here and begin your application.
2. Locate Your Project
There are several ways to find good real estate opportunities. We are still seeing most clients locate deals through a Realtor looking in the MLS. This is where most transactions take place. If you are having trouble finding the right deal, consider trying to locate deals that are not listed for everyone else to see. Check out our blog for more information on how to locate these opportunities. Once you locate an opportunity it is your job to run the numbers to ensure it is a profitable transaction. We will review your deal and double-check your numbers to help you, but we ask that you do the work first and bring us deals that you believe are profitable. Check out this post for help running your numbers on your opportunity.
3. Collect Your Financials
If this is our first time working together, we will document the information you gave us on the pre-approval application. You will get an email from our team asking for a recent bank statement and tax return.
4. Get Contract And Scope Of Work (With A Budget)
Once you have your Scope of Work and budget together, send them to us with the contract. Click here for a sample SOW. With those two items we can start our valuation process so we know it is a great deal for you. We will also be able to run through your budget with you and discuss options to make this the best project we can.
5. Order Appraisal Or Run Internal Valuation
Once we have a good idea of the project plan and budget, we can get our valuation ordered. This is most often a full appraisal from a Pine Financial Group approved appraiser. This value is based on repairs being made, also known as an after repaired value (ARV).
6. Order Insurance
There are two insurance policies that we require. First, the property itself needs to be insured to protect our investors and protect you as the owner. We also require a lender title insurance policy, which covers several items that are important to both of us. These policies can take a little time so it is important to get them ordered as soon as we can.
7. Build And Underwrite File
By this time, we should have a full loan file on you, the borrower, meaning you signed the disclosures and sent in your required documentation. We have talked about your project and have run preliminary numbers. We would then move this loan to our in-house underwriting to be sure we are making a smart lending decision for you and for our investors. Once the appraisal is in, we review the report and wrap up the file confirming the deal is profitable and that we are in a secure position. There could be additional questions at this stage to work through.
8. Coordinate Closing
In this step, we work with all the players in the transaction to coordinate the closing. This includes making sure insurance is in place and coordinating the closing services with the title or escrow company. We will then create, review, and send our loan docs for execution, Finally, we send our wire to the title or escrow company to fund the loan.
9. Service Loan
Once your loan is closed, we will service the loan in-house. That means that you make all your payments to us, you work with us for construction disbursements, and we are here to support you and your project.