Hard money lenders have various requirements and standards. The documentation is usually the same in most transactions. The most typical documents to process the loan include a letter of intent, initial title report, sale agreement, purchase agreement, proof of insurance, and proof of funds, title insurance, personal guarantee, a mortgage note, and other legal documentation. Let us take a quick look at some of these documentations.

Letter of Intent

LOI, as it is known, the Letter of Intent is one of the primary documents necessary to complete a hard money loan. It is a mandatory requirement. This is a document that formalizes the relationship with all involved parties. It provides an outline of what the agreement entails prior to finalizing such an agreement. This document does not legally bind the parties but acts as a measure to prevent miscommunication.

Purchase Agreement and Sale Agreement

This P&S Agreement known as the purchase and sale agreement is the document that finalizes the sale price and the terms of the sale, contingencies, condition of title, the closing date scheduled, details of the earnest money, and other information. The types of things included in this agreement will be different; depending on the state where the transaction will be completed.

Initial Title Report

Of course, the title is the document that will list the different owners of the home. Once a mutual agreement has been reached between the buyer and the seller, a real estate lawyer or the title company reviews the title of the home to find out if there are any pending issues that may prevent the sale of the home. Anything found on the title such as liens will be listed in the initial title report. The title report will also show if anyone else owns the property.

Title Insurance

Hard money lenders treat title insurance as essential documentation and operate as a preventative measure to protecting the buyer from a challenge to their property ownership.

Personal Guarantee

The person buying the property needs a personal guarantee; putting up their savings, real estate, and other assets up to secure the property is very common. In so doing, the assets serve as a guarantee against the risks associated with buying real estate.


All these things including the proof of funds and insurance along with the mortgage note have to be present in order for the transaction to be processed. Once you are in a real estate transaction, you should start reaching out to various hard money lenders for financial assistance.