THE DEAL FINANCING PLAYBOOK
Before You Chase the Rate, Ask These Questions
The cheapest rate doesn't matter if you never close.
THE CHECKLIST
1. Can they close on your timeline?
Get a specific answer. If your contract has a 21-day close, confirm they've done it before.
2. Who makes the final credit decision?
Know who is approving your loan and whether they have final authority — or if it goes to a third-party underwriter.
3. Are these the terms you'll close with?
Ask: "Under what circumstances would your rate, points, or fees change before closing?" Vague answers are a red flag.
4. What do they need from you, and when?
A good lender gives you a complete document list upfront. Repeated last-minute requests mid-process is a warning sign.
5. How do draws work on rehab or construction loans?
Know the number of draws allowed, who orders inspections, and how long reimbursements take.
6. What's their track record with deals like yours?
Fix and flip, new construction, and bridge loans are not interchangeable. Ask how many similar deals they've closed in the last 12 months.
7. What does an extension cost?
Projects run long. Know the cost of a 30- or 60-day extension before you're in one.
8. Can you reach them directly?
Know who your contact is and how fast they respond. One unanswered call at the wrong moment can cost you a deal.
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QUESTIONS TO ASK BEFORE YOU COMMIT
→ What is your average time from application to close?
→ Has your rate or fee structure ever changed after a term sheet was issued?
→ Who do I call if there's an issue during underwriting?
→ Do you lend your own capital, or are you brokering this loan?
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Legal Disclaimer:
This article is provided for informational and educational purposes only and is not intended to constitute legal advice. Real estate regulations can be complex and situation-specific. Readers should consult with qualified legal counsel or a licensed attorney for guidance regarding their particular transaction or compliance obligations.
At MGM Private Capital, we actively support real estate investors across Southeastern Wisconsin with trustedcapital options and offer opportunities for capital partners to grow alongside us.