🏠 Private Mortgage Lender Checklist
✅ What to Ask and Prepare Before Applying
A free resource by Jason Bryan Ball | Jason’s Fin Tips
📂 Section 1: Document Preparation Checklist
Before you approach a private mortgage lender, make sure you have the following documents ready:
| ✅ | Item | Description |
|---|---|---|
| [ ] | Property Appraisal or Market Valuation | Establishes the value for determining LTV. |
| [ ] | Proof of Funds | For the down payment and closing costs. |
| [ ] | Credit Report (optional) | May help—even if not required. Shows transparency. |
| [ ] | Income Evidence (optional) | Especially helpful if self-employed. |
| [ ] | Exit Strategy Plan | Your plan for repaying or refinancing the loan (sale, refinance, etc.). |
| [ ] | Real Estate Investment Plan | For fix-and-flip, rental, or BRRRR strategies. |
| [ ] | Personal ID & Business Entity Docs | Needed for closing (LLC docs, operating agreement if applicable). |
🧾 Section 2: Key Lender Interview Questions
Ask these questions before signing anything:
| ✅ | Question |
|---|---|
| [ ] | What is your loan-to-value (LTV) ratio limit? |
| [ ] | What are your interest rates and loan terms? |
| [ ] | Do you offer interest-only or balloon payments? |
| [ ] | Are there prepayment penalties or fees? |
| [ ] | Are you licensed or regulated in this state? |
| [ ] | What is the total cost of the loan, including points and fees? |
| [ ] | How long is the approval and funding process? |
| [ ] | Do you report to credit bureaus (if applicable)? |
| [ ] | What are the foreclosure procedures if I default? |
| [ ] | Can I see a sample contract before I apply? |
⚠️ Section 3: Risk Awareness Checklist
Know the risks—and weigh them carefully:
| ✅ | Risk Assessment |
|---|---|
| [ ] | I’ve compared at least 3 private lenders or brokers. |
| [ ] | I understand the repayment timeline and interest structure. |
| [ ] | I have a clear exit strategy (refinance, sell, income growth). |
| [ ] | I understand what happens if I miss a payment or default. |
| [ ] | I’ve reviewed the fine print, including any balloon clauses. |
| [ ] | I’ve consulted a real estate attorney or professional advisor. |
📌 Section 4: Decision Readiness Checklist
You’re almost there—run through this final pre-approval list:
| ✅ | Decision Confidence |
|---|---|
| [ ] | I can afford the monthly payments based on a realistic budget. |
| [ ] | I’m comfortable with the higher interest rate and short term. |
| [ ] | I’ve read the full loan agreement or term sheet. |
| [ ] | I know when and how I’ll repay or refinance. |
| [ ] | I’ve built in a buffer for unexpected costs or delays. |
| [ ] | I’m not relying solely on this loan to “rescue” a bad deal. |
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