Obtaining a HUD loan is a meticulous, and sometimes arduous, process that can take anywhere from a couple of months to a year. Neither borrower nor lender have much recourse when it comes to HUD’s part of the deal (though the introduction of the HUD Lean application in 2009 streamlined the application process considerably).
However, according to Cambridge Realty Capital founder and chairman Jeffrey Davis, there are some things that borrowers can do on their end that can speed up the process and, ultimately, get them their funding in a more timely manner. “Borrowers applying for a popular HUD funding program in today’s market are finding that accuracy and attention to detail is not an option,” Davis stated.
Waiting a year to get a HUD loan is extreme, but it does happen with some lenders. By contrast, Cambridge clients typically have a much shorter wait to receive their funding. Closing deals and delivering funds efficiently and expeditiously is just one of the things that sets Cambridge apart from other lenders. It is part of The Signature Experience™, developed by Cambridge in order to better serve its clientele.
One of the reasons that Cambridge clients get their funding faster is because of Cambridge’s extensive experience. The company has been dealing with HUD loans since the 1980’s and knows HUD inside and out. Not only that, but Cambridge also has the combined skill, experience and wisdom of staff members that measure much longer than 30 years.
However, the borrower also some control when it comes to the timing of executing a deal, and that involves having the right information and documentation available at the start of the transaction. “It’s important for borrowers to carefully and pragmatically review the checklists provided by their lender to make certain that all the information bases have been covered,” Davis advises. “The guiding principle in this endeavor is that more is better than less.” The more documentation a borrower can provide up front, the shorter that gap between opening and closing of the deal. In other words, there is no such thing as “too much paperwork.”
Unfortunately, “it’s not uncommon for borrowers to submit data that’s incomplete, which can lead to unwanted problems.” Incomplete data always hampers the application process and also decreases the chance that the borrower will get the money he needs.
Accuracy is also critical to the timely receipt of funding. “Lenders are often asked to deal with projections, and these projections can get very aggressive. But it’s never a good idea for borrowers to fudge, not even a little bit,” Davis advises. Accurate and realistic information, especially that which can be supported by documentation, empowers the borrower when it comes to his ability to make a deal happen faster.
This advice does not apply solely to the first-time borrower. Borrowers who are financing or acquiring new property must still have all their ducks in a row and provide the same kind of paperwork and data as with its first loan.
Fortunately, Cambridge also works hard to develop long-term relationships with its borrowers, making subsequent loan applications even more efficient and less tedious. “At the end of the day, we do whatever it takes to help the client get what he or she needs to get the deal done,” Davis says.