One of the most helpful things we can do at the beginning of a transaction is to give you clear tips to keep your loan on track during each stage of the process. A successful transaction is the responsibility of both lender and borrower – be sure to follow these instructions and then leave the rest to our experienced lending team.
1. Take 360 Degree Photos – On your buy appointment, take a comprehensive set of photos, both interior and exterior, so that your contractor and the Silver Hill team can get the same view of the property that you had on your walk-through. Use an app like CompanyCam to take your photos or save your photos to the cloud with an app such as iCloud, Dropbox, or Google Drive so that you can easily share a link with external parties. Note: we prefer links to cloud drives vs. email invites.
2. Estimate a Reasonable After-Repaired Value (ARV) – Use your training to estimate a reasonable ARV; comps should have similar property characteristics, be located in the same neighborhood, be in similar rehabbed condition, and, ideally, be within the prior 6 months. If your estimated ARV exceeds the value of your comps, try again.
3. Prepare a Detailed Rehab Budget – Complete the line item budget in detail, including a description of the project and the specific work and quality of materials on each line item. A more comprehensive description of the project will help Silver Hill derive a more accurate ARV and will help streamline the draw process during the renovation. Also, the rehab budget should reflect the work required to bring your property to the same condition as the comps you used even if you intend to wholetail it.
4. Order Title ASAP – As soon as you put a property under contract, alert your lawyer or closing agent so they can start the title search process immediately. You can save days from the loan process if your title company has already started working on the file by the time Silver Hill reaches out to request title and closing related documents.
5. Submit a Complete Application – Submit a complete loan application package as soon as possible after you place a property under contract. Include:
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- Signed application
- Copy of the contract and any and all amendments or assignments
- Thoroughly-completed line item rehab budget
- Link to photos
- Contact information for lawyer/closing agent
Note: Silver Hill can close within 10 business days from loan submission, but the clock starts when we receive a full application package.
6. Initiate Insurance Process – Contact your insurance agent ASAP after loan submission to ensure that they are prepared to issue evidence of insurance (EOI) in conjunction with the loan. Silver Hill requires the EOI to complete its underwriting process – if you are using Millennial, you can request the insurance through their self-service portal. Keep an eye out for communications from Silver Hill that provide specific instructions regarding insurance.
7. Make Valuation Payment Early – While we don’t always need an appraisal to size and close the loan, we always order a 3rd party valuation. Please make the payment to the appraiser as soon as possible per the instructions they provide you. Also, remember that we will credit you up to $420 at closing for the cost of the 3rd party valuation.
8. Be Responsive and Communicate – Silver Hill cannot effectively process your loan without your input. Please be responsive to any emails or calls from Silver Hill requesting clarification or status of due diligence items or closing timeline.
9. Coordinate with Your Closing Agent – Make sure you’re in close contact with your closing agent (attorney, escrow officer, etc.). They control the timing for the closing – not Silver Hill. They will let you know when the transaction is ready to close and will schedule the signing with you and the Seller, accordingly.
10. Bring ACH and Voided Check to Closing – In order to ensure that monthly payments on the loan are processed seamlessly, Silver Hill requires a completed ACH form and voided check for the bank account from which the payments will be made. Important: please provide a copy to your Closing Agent as part of the closing process to avoid any delays with disbursing the funds to your Seller.
Actually, this list goes to 11! Here’s your bonus tip:
11. Review the Deal with your Development Agent (DA) – Talk to your DA often; discuss and preview opportunities with them and listen to their advice and opinions. As a fellow investor with years of experience, they are an invaluable resource uniquely available for HVA Franchisees. Note: Silver Hill will always contact your DA to get their view on a new loan application – we value their input!
Ready to put these tips into practice? Take the next step with our dedicated lending team and see how focused we are on creating a positive lending experience for you and your business.
