Parapet Capital Partners, LLC

Direct Lender for Home Acquisition & Renovation Financing

Loan Process

 

Submit a Loan Application

 

Upon receiving an initial pre-approval based upon a snapshot of the loan request, a complete loan application is completed and submitted.  Be sure to provide complete and full disclosure on these forms as it is our basis of Parapet providing a commitment letter.  These forms provide us with an initial picture of you and your financial standing.  Providing accurate property information is vital in facilitating a thorough title search on the subject property.  The documents you must provide to support the information in these forms varies on your financial status, the type of loan you are seeking, and the collateral property involved.  Examples are tax returns, financial statements, bank statements, valuation information on other properties owned, and leases.  We then may require supplementary documents based on the type of loan you require.

 

Review of Credit, Assets, Income to Determine Qualification

 

While the application process may seem cumbersome, prompt full disclosure will get you to a faster decision.  It is best to be open about any problems you may have on your credit report, on title, or with the collateral.  We will work with you to resolve any problems.  The more up front you are, the quicker you can get to a confident yes or no on the viability of your real estate loan.

 

Choosing the Best Loan Program

 

The amount of funding available and the loan terms will vary.  Be prepared to talk about what your plans are, the type of properties you go after, a business plan on your profitability, etc.  Once an application has been completed and a loan program identified, our goal is to approve and close your loan within 5-10 days.

 

Title, Appraisal, and Escrow

 

Upon approval and issuance of a commitment letter, we will require access to the property for an appraisal.  A preliminary title report will be ordered from a title company who researches the property and the entity under which the loan is vested for liens, judgments and other encumbrances.  The value of the property will be determined by an appraisal report prepared by a licensed appraiser, but in some cases other valuation methods may be used.  Funds will be held in escrow by the attorney who oversees the closing, and will disburse all funds in accordance with the lender’s instructions.

 

Review of Documents

 

Unexpected liens or judgments against the property or yourself, or the entity under which the loan is vested must be resolved before the loan can fund.  Title insurance guarantees the loan will be in the desired lien position.  Any outstanding liens or judgments threaten that position and therefore must be cleared (paid off) prior to or at loan closing in order for a title insurance company to offer coverage.  Often times, a lien is still showing even though you paid it off.  This happens because the lienholder you paid off may not have recorded the appropriate release.  You’ll be required to provide documentation showing the lien was paid, and/or contact the lienholder and ask them to provide the appropriate document to be recorded.  

 

Final Loan Approval

 

After property valuation and title is reviewed, we will let you know the loan is approved and ready for documentation.  Expect a few days for this process, and give yourself a day to go through them before signing to make sure everything is in order.

 

Settlement

 

Once the real estate loan is approved to close, the official closing is generally held at our attorney’s office, but other accommodations can be made.

 

Loan Funded

 

Once documents are signed, we will arrange to have the funds wired and the loan proceeds will be disbursed.

 

Documents Recorded

 

Our attorney will arrange for the appropriate documents (mortgage, note, etc.) to be recorded with the county, making the new loan a lien against your property until it is paid in full.

 

Borrower Payments

 

As part of the closing documents, you will be given instructions on where and when to make payments.