Start Over With the Right Lender and Get a Refinance Loan
Many times people will commit to a loan without fully understanding the term contract or hidden fees. We don’t do that! Our terms are easy, simple, and straightforward. Our interest rate is the lowest in the city. Entrust Capital Funding can purchase your old loan and help you get back on your feet. Our refinance loan is perfect for people who already have a loan on the home but want to look for lower interest rates or better contract terms.
The process of obtaining a refinance loan with us is basically the same as our other loans. We do a market analysis and a property evaluation to determine the worth/value of the property and then make sure of some of the terms of the contract.
- Application. Interested parties begin by filling out an application on our website. Print the application and mail or email it directly to us. We review the application within 24 hours and return your call almost immediately.
- After Repair Value. This is when we conduct a market value analysis on the property. If you already have a mortgage on it, we still need to determine its value. We look at pertinent data—like recent sales in the area—to help value the property. With our access to Multiple Listing Service, we can pull comprehensive market data to value the property for a good estimate of what it will sell. Once we establish that price, Entrust is able to lend 70% of that After Repair Value (ARV) at closing. For example, if the property is said to be worth $100,000 we will loan 70% of that ARV.
- Site Visit. Once we have conducted the ARV Analysis, we will issue a Pre-Approval letter. This approval letter is subject to a site visit by Entrust Capital Funding. At this time, we will begin by examining the home. We will revise our evaluation, either up or down, due to factors like the neighborhood, condition of the property, unknown features etc. We will also look at the property and make an assessment on how much we feel the repairs will cost. After the site visit, we will issue a Final Approval Letter, in which the final amount we will bring to closing, as well as how much we will keep in escrow for repairs.
- Closing. (May not apply for refinance loans.) The only upfront costs associated with a hard money loan from Entrust Capital Funding is $400.00 to open up the title and draw up the loan documents. Entrust Capital Funding has the ability to close files within 7 days, as we have the funds readily available, as long as the title is clear. All closing costs are the responsibility of the borrower.
- Renovation. (May not apply for refinance loans.) Once the property closes and funds, the borrower can begin the work of renovating the property. Entrust Capital Funding holds funds for repairs and will distribute those funds on a predetermined Repair Draw schedule. For example, if the property requires $10,000 in repairs, we would structure our draws as $2,000 for exterior renovation and $8,000 for interior repairs. Once you feel that the exterior repairs are done, contact us and we will go and inspect the renovations. We will not tell you HOW to renovate the property, but we will make sure all renovations are done completely and to code. If we see the exterior is completed, we will disburse the $2,000 to you. Once the interior repairs are done and we have inspected those repairs, we will issue the final draw of $8,000. Repair draws and schedules are subject and depend on the property.
- Sell & Pay Off. Once all the renovations have been completed, put the property on the market and sell! You will still be responsible for the payments on the property until the time that it sells. If it does not sell before the maturity date, which is one year unless otherwise stated in the loan documents, then you will need to either pay off the loan or refinance at that time. If the property sells, pay off your loan and we can work on the next deal!
The only requirement needed to qualify for our refinance loans is that you must owe less than 70% of the property. In other words, we cannot refinance your loan if you owe 80 percent of your loan obligation. The rest really depends on the property. Our process is the same and simple throughout. We don’t do credit checks or evaluate your debt history. Instead, we base ourselves on the value of the property being used as collateral.
Use a Trusted Lender
There can be many reasons why you are looking to refinance your loan. Chances are, however, if you’re looking for this option, you have probably learned the hard way that some lenders don’t always have your interest in mind. Sometimes loans have hidden fees or unclear terms. We keep it simple so that you know exactly what you’re getting into.
Get a Better Investment With Entrust Capital Funding
If you’re ready to set the record straight and get a refinance loan, give us a call at 915-320-6633.