How Long Does It Take to Get a Bridge Loan?
Bridge loans are an essential tool for real estate investors and businesses needing quick access to funds. They provide a temporary financing solution to bridge the gap between buying a new property and selling an existing one or securing long-term financing. One of the key advantages of bridge loans is their speed of approval and funding. But just how long does it take to get a bridge loan? Let’s explore the timeline and the factors that influence it.
Understanding the Bridge Loan Timeline
Initial Inquiry and Qualification (1-2 Days)
The process begins with an initial inquiry where you express your interest in a bridge loan. Loan requests can be made through an online form or a direct call to the private lender. If your request meets the lending parameters of the private lender, you’ll then provide a completed loan application and basic information about the property and your financial situation. A reputable private lender can often decide interest within 24 to 48 hours. After interest is determined, a letter of intent, or LOI, is issued shortly thereafter outlining the terms of the loan. This quick turnaround is possible because bridge loans are asset-based, meaning the lender focuses more on the property’s value and location, and less on your credit score. Private lenders also typically operate with less bureaucracy and regulatory requirements than traditional banks. Without layers of approval committees, private lenders can make decisions more rapidly.
Documentation and Appraisal (2-5 Days)
Once a signed LOI is returned to the lender, they’ll order an appraisal, which typically takes 2-3 days, and open title and escrow. In the meantime, you’ll begin providing the items from the needs list on LOI. Required items may include:
- Purchase agreement or current mortgage statement
- Payoff demand
- Financial statements detailing NOI of the property
- Lease agreements/rent rolls
- Recent bank statements
- Tax returns
The speed of this step largely depends on how quickly you can gather and submit the required documents. A well-prepared borrower can complete this step in as little as two days, while others may take up to a week.
Closing and Funding (1-3 Days)
Once the lender has all the necessary documentation, underwriting evaluates the risk and ensures all conditions are met. The lender will then prepare the loan documents, and you’ll review and sign them. This process can be completed in one to three days. Once signed, the funds are typically disbursed immediately, providing you with quick access to the capital you need.
Factors Influencing the Timeline
Several factors can affect the overall timeline of securing a bridge loan:
- Preparedness: How quickly you can gather and submit the necessary documents can significantly impact the timeline.
- Lender Efficiency: The experience and efficiency of the lender play a crucial role. Experienced private lenders can expedite this process and navigate complexities that may arise.
- Property Type: Unique or complex properties may require more extensive appraisals and inspections, potentially extending the timeline.
Getting Started
In general, you can expect the entire process of obtaining a bridge loan to take between 5-10 business days. This swift timeline makes bridge loans an attractive option for those needing quick and flexible financing solutions.
If you’re considering a bridge loan, don’t hesitate to reach out to our qualified team at Wilshire Quinn Capital. With over a decade of experience navigating unique borrower needs, we are here to guide you through the process and ensure you get the funding you need promptly and efficiently. Contact us today to discuss your loan needs and take the next step toward achieving your real estate goals.
