Your Guide to the Visio Loan Process

Posted by Hannah Lapin on Nov 3, 2021 11:33:40 AM

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Time is money. Investors need to be able to move quickly, not just to get the best deals, but to start making money sooner, too. The process of financing an investment property can often be a time (and money) drain. Understanding the full Visio Loan process and tips to speed it up could be your key to a smoother, less stressful, and better loan experience. In this guide to our loan process, we will cover the key stages, your points of contact through the process, and tips for staying organized and on top of your loan.

 

5 Stages of the Visio Loan Process

Here is an overview of our loan process broken into five parts. Keep in mind, these stages are time-dependent on many factors and vary by individual loans.

 

Application Stage

Visio borrowers have a choice. If you are in a hurry to close, then you have the option to send in your completed application and IDs, order and pay for your appraisal, and pay our modest application fee (credited back at closing). We’ll begin to process your loan immediately. Alternatively, you can skip the application fee, and we’ll begin processing your loan when the completed appraisal arrives.

  • Time Frame: This depends on you and the appraiser. It could be as few as 1 day to as long as 3 weeks if an appraiser is not available in your area
  • Point of Contact: Account Executive

 

Processing Stage

During this stage, we assign one of our Processors to your loan, we order title and a flood certificate, and we gather all remaining documents from you (corporate documents, insurance information, etc.).

  • Time frame: 14 Business Days
  • Point of Contact: Processor

 

Underwriting Stage

In this stage, your Processor submits your full loan package to our underwriting department for review. The Underwriter typically will issue an approval for the loan, subject to certain conditions that must be met, or “cleared," prior to closing.

  • Time Frame: 3-5 Business Days
  • Point of Contact: Processor

 

Closing Stage

Once we issue your final approval, we’ll contact you to schedule your closing. We schedule refinances and purchases out 48 hours and 24 hours, respectively, from the time we reach you. Your Account Executive will also contact you to go over your preliminary HUD.

  • Time Frame: Typically, 48-72 hours after our Underwriter issues their approval (but it also depends on your availability)
  • Point of Contact: Closing Team & Account Executive

 

Funding Stage

We fund your loan once we’ve had the opportunity to confirm with the settlement agent that all of the loan documents were executed properly.

  • Time Frame: less than 24 hours on most purchases; typically 48 Hours or less on refinances
  • Point of Contact: Account Executive

Remember this is just a basic overview of our process, and your Account Executive and Processor will provide you with more details on your specific loan.

 

Tips to Speed Up Your Visio Loan

There are key actions borrowers can take to help move your application along and make things easier on you. Let’s take a closer look.

 

Gather Your Documents & Have Them Accessible

One reliable way to ensure a smooth closing is to have all of your loan documents organized. At Visio Lending, we pride ourselves on being a low-doc, investor-friendly lender. We do not require personal income statements nor tax returns. However, here is what we do need to get you started:

  • One form of ID for each borrower and guarantor
  • Voided Check
  • Title Company Contract
  • Insurance Declarations Page
  • Entity Documents:
    • Formation Document
    • EIN Letter
    • Certificate of Good Standing
  • Condo HOA Contact information (if applicable)
  • Current Lender Information (for refinances)
  • Purchase Contract and any Addendums (for purchases)

 

Know the Visio Borrower & Property Requirements

While most properties are processed smoothly, there are others that raise red flags and cannot be moved forward. Here are some things to keep in mind:

  • Property Value

Talk to your local realtor and do your own research to determine the appropriate comparable. You do not want to be surprised by the appraisal value.

  • Property Condition

Appraisers rate property conditions using a scale of C1 (New) to C6 (Complete Redevelopment). We only lend on rent ready properties (C1-C4). ALL repairs/rehab should be completed PRIOR to starting a loan with Visio. 

  • Non-Arm's Length Transactions

A non-arm's length transaction is where the buyer and seller have a pre-existing business, personal or familial relationship. Visio is not a consumer mortgage lender and therefore cannot allow the family of the borrower to remain in the property.

  • Investor Insurance

Research and choose your insurance product EARLY because it likely will take longer than you think. Consider the cost as well — if your premium is proven to be more expensive than you are estimating, it could potentially change your loan parameters, up to and including disqualification. Accurate escrow estimation is paramount to an accurate quote from Visio. Please note, we require hazard insurance to have 100% replacement cost. We do not allow actual cash value policies.

Again, this is just a sampling of some requirements that have in the past thrown curve balls at borrowers. Your Account Executive and Processor can help you with your specific loan scenario.

 

Familiarize Yourself with Mortgage Basics

In this industry, not only does understanding the mortgage process and lingo help you communicate with your Processor, but it will also help you make the right decisions on your investments. The Visio Blog is a great starting place to learn the real estate investing essentials.

Think you know your mortgage terminology? Take this quiz!

The Visio team is here to help you and serve as your trusted partner through the loan process. Contact Us to Get Started.

 

Topics: Finance