Phase I: Preliminary Review
Forrest Financial obtains basic information from the borrower to determine whether the hard money loan request fits within our lending parameters. The borrower will know the the results of this review quickly, within a day or two at most - often immediately or within hours.
Phase II: Identification of Loan Terms
If the hard money loan request appears feasible, Forrest Financial will obtain other pertinent information from the borrower for a more-detailed review. Following this review (typically within 48 hours), borrower is presented with a proposed loan structure outlining the specific terms and conditions under which the loan could be made. Provided borrower finds the loan proposal acceptable, all parties agree to move forward in good faith to consummate the transaction.
Phase III: Due Diligence
Forrest Financial performs due diligence. Borrower will likely need to provide additional information. For large loans, it may be necessary to engage engage industry professionals (appraiser, attorney, engineer, etc) as appropriate to assist in the underwriting and evaluating the property. If other professionals are engaged, the borrower will likely be required to advance funds to the lender to cover the cost of such third-party professionals. The time needed to complete the due diligence process will range from a day or so for small loans to a few weeks for larger loans. The time needed depends on the complexity of the transaction, the availability of third-party professionals (if needed) and the responsiveness of the borrower and others to requests for information.
Phase IV: Documentation and Closing
If Forrest Financial is comfortable proceeding following completion of the due diligence, funds will be committed, documents prepared for borrower's review and the closing scheduled. Borrower accepts the commitment, approves documents and the hard money loan closes.