1) How much is this loan going to cost me?
The average loan costs start at approximately 3.5 points for a twelve month loan. Also, you can expect to pay the normal title insurance and escrow fees. There is no prepayment penalty and there are no appraisal fees (in Nevada County). There are some title co. draw fees ($50.00 ea.) and a $250.00 Document fee. BONUS: E-Z LOANS sometimes come with a bonus of free lumber, free house plans, or a certificate worth $500.00!
2) How much money can I borrow on my house?
You may borrow up to 60% of our appraised value of your home whether your home is paid for or not, finished or not or at any stage of construction. In other words, we can arrange a 1st loan, a 2nd loan, and sometimes even a 3rd loan for you (we only arrange construction loans in first position, however). We will provide the appraisal of your home to determine the amount you can borrow and there is no appraisal fee cost to you.
3) I've considered a mobile home. Do you arrange loans on mobile homes?
No. Mobile homes are considered personal property. We only broker 'real estate' loans. The only time a mobile home can be considered real estate by us, is if it has been placed on a permanent concrete foundation, bolted down and taxed as real property. Otherwise, we would not be able to make a loan on a mobile home. We could, however, arrange a loan on the land that the mobile home was on including any other improvements on that land. For instance, a barn or a garage or even a structure that you wish to build.
4) How can you arrange a loan without all the red tape that the bank usually has?
Because we represent many (approx. 100) private retired investors that
can approve your loan request based primarily on the projected equity in
the property. If you want a construction loan and have already broken ground
in any way we can usually still fund a loan for you but it is easier to
get a loan if you have not already broken ground and wait to do so until
your E-Z Loan escrow closes.
5) How much will my monthly payments be?
Your monthly payment amount will be determined by the amount of money you borrow. Our loans are generally funded as interest only loans, which means you make low interest only monthly payments. There is no prepayment penalty, so you can feel free to pay more on your loan in any given month. Because there is no prepayment penalty, you can also pay your loan off early and only pay interest on the amount of money you borrowed for the period of time you borrowed it. (Loan amount x interest rate, divided by 12 = your E-Z monthly payment amount)
6) Do you make loans in my area?
We can arrange E-Z Construction & Equity loans everywhere in Northern California!
7) Do I have to tell you what the money I'm borrowing is for?
No, we don't need that information. Unless, of course, this was a construction loan request and then we would need to know exactly what you were planning to build.
8) What kind of loans do you make?
We arrange first trust deeds, second trust deeds, and sometimes even thirds. We arrange construction loans, equity loans, owner/builder loans, home completion loans, vacant land loans, spec' home loans, or swing loans (equity advance style bridging loans so that a person can borrow a part of their equity from this house in order to finance their move to another property). We can arrange nearly every sort of short term real estate loan that exists including sophisticated note hypothecation where a person obtains a loan against an existing Note and Trust Deed they may already have.
9) If I applied today, how soon would it be before I got my money?
Each loan requires the cooperation of several parties including you ... so sometimes unexpected delays can occur. We have closed many escrows in as little as five working days. Our average escrow period runs about 10 or 15 days from when we have your preliminary title report in hand. The work on our end in our office takes only about 4 days total.
10) What's the advantage of borrowing money through E-Z Loan rather than a bank?
There are many advantages. Probably the most important advantage is . Because we represent private investors who are able to approve your loan primarily on the real estate equity, we can approve and close your loan much faster ... time is money. Privately funded loans don't entail all the red tape commonly connected with other traditional or conventional loans. We don't require stacks of verifications of employment, verification of your bank and purchase deposits, or even the frustration connected with waiting weeks just to get an appraisal. E-Z loans can be tentatively approved in minutes because there are a lot less things that private investors require. Our lenders hang their hat primarily on proposed equity in a loan request while others make you wait for several weeks for paperwork to arrive. Also, we can arrange a construction loan for you to complete a house that may be partially built, whereas, generally, if construction has commenced on a project, other lenders will not. There are several advantages to borrowing private money. I would say that is probably the most popular one. Think of us as the private money loan arranger.
11) This sounds like it might work for me. How would I apply for a loan through you?
All you have to do to apply for your easy short term real estate equity or construction loan is to call me now at area code 530-272-5916 and we can discuss your short term real estate loan needs right now. Or even quicker yet! simply go to the E-Z LOAN Application web page by clicking on those words in color below, and print a copy of the loan app. with your printer or fax machine. Fill it out in pen or pencil and fax it to me at 530-273-5636 and we'll get your loan approval started right NOW!
12) How about an appraisal? Don't appraisals usually take three weeks and cost a lot of money?
We have a sister company that can perform the appraisal process fast. After sending out our independent appraiser, we will arrive at our own value of your property at no cost to you (in Nevada County), and instead of taking two or three weeks, we generally can do this in one or two business days (which also helps to speed up the loan process).
13) How do I know this E-Z LOAN company is bona fide ...and legal?
We are licensed through the California Department of Real Estate and all of the documents that we use are D.R.E. approved. Your loan is also handled through a reputable licensed local title company with the usual title insurance.
14) If you only loan 60% of the property's value, does that mean I have to have the other 40% in equity?
No, it is not necessary for you to have the other 40% in cash or in equity. The seller that you bought the property from could possibly carry a second, or anyone else may be willing to carry a portion of that other 40%. 100% financing is neither illegal nor immoral and we see many properties purchased with no down through the use of creative financing. We also see many properties being built through the use of creative financing where a person will either earn a portion of that 40% in sweat equity or some other consideration.
15) If I'm planning to build or add on to my house, do I have to be a licensed contractor or do I just do the work myself?
No, you don't have to be a licensed building contractor. You can be an owner/builder as long as you build the house with a valid building permit and therefore comply with all the general building codes.
16) What if I need more time on my loan at the end?
Since these loans are funded by private investors we cannot guarantee that any loan can be extended or rewritten. However, it is not uncommon to extend a loan if the investor agrees and your payment record has been good. I'm sure it's safe to say that if we were willing to arrange a loan for you on a property once, we would be willing to do it again, as long as your payment record was good. There would, of course, be new costs and expenses related to an extension or the rewriting of a new loan for you.
17) I'm planning to have a partner in this loan. Would you need his signature?
Yes. The title company requires the signature of anyone who is in title on all documents in order to obtain this loan. Of course, you may already have a power of attorney or you may have a quitclaim deed or some other document that will satisfy that requirement. We simply need the title company's clearance so that they can issue the title insurance necessary.
18) Before we go any further, I've heard the term subordination. Can you explain that to me? I don't understand that at all.
I'd be happy to give you a brief explanation of subordination. I'm not a lawyer, however, so you should seek your own legal advice always in connection with subordination. I can only tell you the definition of subordination is when a person with an interest in real estate or a note and deed of trust secured by real estate lessens his position. For example, if I held the first on a property and I subordinated to a construction loan, I would actually allow my first to become a second so that you could go out and seek a new first for the purpose of construction, then I would be subordinating to construction financing. Subordination, if used properly, can be a very valuable tool for buyer and sellers alike. We do have a 30 minute video and a free report entitled "What the heck is Subordination?'
19) You've answered my questions. Where do I go from here?
If it sounds like I can be of further service to you, please call me now at 530-272-5916, or print the E-Z Loan Application and fax or print yourself a copy of it and fax it to me now at 530-273-5636
20) "WHAT THE HECK IS SUBORDINATION"
tele: 530-272-5916, fax: 530-273-5636
P.O. Box 163, Cedar Ridge, Ca. 95924
Ca. Brokers Lic #00426805/Ca. Dept. of Real Estate