On December 11, 2021, I submitted a loan application to Lend Some Money to qualify for a hard money loan to purchase an investment property.
On December 18, 2021, I received an email from a Loan Processor, stating the loan was conditionally approved.
The initial closing date was January 26, 2022. This deadline was missed, while Lend Some Money had all the requested documents, I was told the file was still in underwriting.
Because of the efforts of my Realtor, the seller was able to receive an extension to sell the property until February 2, 2022.
I was assured by the Loan Officer, that the loan would close by the extension date.
On January 28, 2022 I was contacted via phone by the Loan Officer, and informed that since I was not a current home owner underwriting did not approve the loan.
Lend Some Money provided a preliminary approval which meant there was an initial review of my file but yet waited for 47 days to inform me that the loan was denied.
Given it took 47 days for the lender to determine that I did not qualify for the loan, I have lost the $1,500 earnest money that I was required to provide to the seller. I was charged $49.99 for a background/credit check and paid $900 to have the property appraised. Also, I invested additional funds during the 47 days, I paid for an inspection and hired a lawyer.
Additionally, the appraisal was initially ordered incorrectly. It was ordered to determine the "As-is' value only and I had to pay an additional fee to include the After Repair Value. Furthermore, when the Operating Agreement for my LLC was requested, I promptly supplied the document. Three weeks later, I was told that the additional members needed to provide a personal guarantee. I paid my attorney to expedite the process to update the document to remove the additional members.
What is most disheartening about this experience is that Lend Some Money was made aware that the seller had a specific date to sell the property to meet the tax redemption deadline or the seller would lose the property. Due to Lend Some Money, not only did I lose more than $3,000 but the seller will lose the property.
My credit score is in the 700's and I have a six-figure income that can be verified. While, I understand and cannot change the lender's requirements, I am certain that I could have found a lender that would have approved me to close on this property as I have purchased investment property before using a hard money lender. read more
