QUOTE (VicChung @ Feb 19 2010, 02:32 PM) I have not heard from anyone yet. I was requested to loan money in the last week. Though I liked the person on the phone, I have never really met the individual. To approve the loan I requested for the following:
(1) Assets to secure against
(2) Employment letter
(3) Copy of purchase agreement
(4) Copy of appraisals
(5) loan document signed in front of a notary
Any one else has recommendations? and also, have a template they would like to share? Any special clauses they add to the loan document?
Just treat yourself as a bank. Banks ask for proof of employment and recent paystub (if salaried), credit report, a list of assets/debts. On top of that, I`d ask for a recent appraisal (within 1 month usually) and purpose of the loan (renovation, debt consolidation, etc). Because it`s an home equity based lending, the max LTV is 75% for me. Evaluate the resale potential of the house in case of default. Also, evaluate if the borrower has the ability to pay back the interest and the principal at the end of the loan period.
It`s the lawyer`s job to obtain title, register charge, get borrower`s photo ID, confirm prior charge, confirm paid property tax, verify insurance binder, clear sheriff`s certification, Chattel Lien Charge/Insurnace statement, and execute the loan documents.
How much do you charge? What`s the amount and LTV? Where is the property? Monthly interest or balloon payment? How do you get paid?