The Borrowing Process

Summary

Cary Long, Chief Executive Officer with Verdeo Capital, a Sacramento area private money lender explains the step-by-step borrowing process a client experiences.

  1. Starts with an Inquiry & Review Situation
  2. Formal Applicaion & Income Verification
  3. Disclosures Prepared & Executed
  4. Underwriting, Conditions & Appraisal
  5. Title Appointment & Close

Cary Long reviewes each stage of the process and talks about why they are able to act quickly, often within 7 to 14 days total to close a private money loan.


What is Private Lending?

Most Common Scenarios

Qualification Process

Borrowing Process


00:01 Gregory Glacken: Hello and welcome! I’m here with Cary Long, Chief Executive Officer of Verdeo Capital Group, and we’re just talking about process involved with obtaining private money from Verdeo Capital Group. So, Cary, why don’t you go to some detail about who this might apply to and what the process is?

00:18 Cary Long: Great! Thanks, Greg. If you’re seeking private money, chances are, you’ve already experience some challenges with institutional financing, and that’s why you’re visiting our site. I thank you again for that. First off, I’d like to say that I recommend that you apply to a mortgage company, a bank, and institutional type of lender first before seeking financing with an organization like ours. We are private money. Private money tends to be more costly and you need to try to get the best as you can, first.

00:54 Cary Long: I’d like to get in to what the process entails. The process entails… Documentation is very similar to applying to a bank or a mortgage company, or an institution. There’s just more flexibility, less documentation and exceptions are pretty common. First off, you would start with the loan inquiry that’s on our webpage at www.verdeocapital.com. Complete that information and send it over or feel free to give us a call with that information. It won’t take the five minutes to take care of that, and we’ll be able to go through and make sure that your scenario is something that’s viable or doable. What we don’t wanna do is to take a bunch of your time on trying to lead you down a path that isn’t gonna work for you. We’re all about common sense and we’ll try to get right to the point for you. Completing the application is a secondary piece to this. The loan inquiry really is the first step, but when you’re ready to complete an application and once we get pass the scenario portion, we could do that in person or you’ll be able to do that on the website as well.

02:01 Cary Long: There are some documents that would be required to be able to make this determination and common documents that we request would entail income documentation, W2s for the past two years. If you’re self-employed, then of course it’d be tax returns and Profit and Loss Statements. We are free to decide for that however we choose. We do not do stated income loans; however, there are some alternatives with bank statements and so on and so forth, which we’ll get into in a later time. But again, income documentation and W2s for the last two years, current pay stubs, the last two years of your tax forms that have been filed. And then, as an alternative, also supply three to six months worth of the bank statements, provide us with the letter explaining the intent with property in question as well as a credit explanation letter if it’s necessary.

02:49 Cary Long: Once we’ve those documents, we’ll prepare disclosures which we’re required to do by the Department of Real Estate. Upon those disclosures being executed or authorized by you, we’ll secure information from the escrow title company that’s involved and it’s really dependent on who you choose to deal with that or, in the case of a purchase transaction, the realtors have probably already chosen that. We’ll secure the documentation. After that, we will complete a credit report, review it, we’ll underwrite the file, a decision is typically given in about a 24-hour period from the time that we have all of your documentation. We’ll request underwriting conditions.

03:31 Cary Long: I do have to say that, the sooner you meet those conditions, the sooner we’ll be able to get the transaction done, and time is a factor. So, once we underwrite the loan, we’ll order the appraisal. What we don’t wanna do is spend your money, the borrower’s money, prior to securing the loan approval for them. The approval process is all done here on site. There is not a loan committee that needs to look at it. Quite honestly, I’m the final signature on that transaction so… And I’m only a phone call away for you, should you have any questions as far as the conditioning that’s been asked for, so on and so forth, or any of the other staff members here.

04:07 Cary Long: Once the conditions have been met, we’ll review the conditions, sign them off, and begin to prepare the closing documents. The closing documents will then be sent over to the title company. They’ll contact you to set an appointment. Once that appointment is completed and documents are signed and returned, we’ll prepare to fund the transaction. All of this can be done in as little of 7 to 10 days. Now, I do need to say that the 7 to 10-day period is a regulatory compliance. We’re not setting that timeframe. And providing that your participation is prompt and your response times are good, we’ll be right at the 7 to 10 days. Usually, we have a lot more time than that if it’s purchased transaction, but, bottom line is, we wanna make it happen as quick as possible. So, that’s the process and thanks for taking the time to view this segment of our messages and I look forward to be a part of your successful experience with Verdeo.

05:07 Gregory Glacken: Absolutely. So, what I’m hearing is it all starts with that first initial inquiry telephone call. That’s it and then, from there, a brief conversation, you can have a quick chat, and then you’re off and running. You’ll an answer whether it’s a viable solution very quickly and then…

05:21 Cary Long: That’s correct.

05:22 Gregory Glacken: And if it is, perfect, they can just continue to work through the process.

05:26 Cary Long: Right. Absolutely.

05:27 Gregory Glacken: Okay. That’s awesome. Well, thanks so much for viewing today. Cary Long, Chief Executive Officer of Verdeo Capital Group, again. You can contact any of the team members here at Verdeo Capital by dialing 916-580-1240 on your phone or by coming over the website at www.verdeocapital.com. And as Cary mentioned just a few moments ago, there’s an opportunity for you right on the front page of the website to fill out an inquiry form. So if you prefer to do it online, you’re welcome to do that or just pick up the phone and give this team a call. So, agian, thanks so much for watching today!