Purchase Procedures

Before Loan Request and Closing
  • Create an Account: First you should “Create an Account”. Once approved you will receive an email with your user name and password which will allow you to login to the members section of the LoanSum website. The member’s section will allow you to submit loan requests, download forms and most importantly allow LoanSum to process transactions and communicate with you most efficiently.

  • Request Pre-Approval Letter (if needed by the seller): Seller may request that you provide evidence of credit. LoanSum will provide a letter of credit, which you must complete online by selecting “Request a a Pre-Approval Letter” and fill in the required fields. Once LoanSum receives the request for a pre-approval letter we will process and provide your letter within one business day.

  • Submit Loan Application: The items you are required to have before you submit a loan request are:

    1. Signed Contract: The borrower must scan and email or fax a signed contract to LoanSum at 314-569-5007 for the property you wish to purchase.
    2. Property Lockbox: You will be required to provide a lockbox for the property you wish to purchase and provide LoanSum with its combination and location. You may purchase a lockbox at any home building supply store.
    3. Construction/Estimate: You will need to scan and email or fax any construction contracts or repair estimates to LoanSum at 314-569-5007.

  • Loan Processing*: Once LoanSum receives your loan request and all required documentation we will start the loan process, which includes a market evaluation and inspection of the property. In addition we will review all construction estimates. Assuming we have received all documentation LoanSum can review, approve and have funds ready for disbursement within 5 business days.
    *LoanSum charges a $350 application fee only if you close on the property.
  • Loan Approval and Closing Documents: Once approved you will need to provide LoanSum with the required documentation for closing including evidence of general liability and builders risk insurance, drivers license (if not already provided), corporate documents if any (see “Closing Checklist”). When all documents needed for closing have been provided you will be able to schedule a closing date with the title company.

After Purchase, Repairs and Selling Property
  • Lockbox: A construction lockbox must be provided for the property allowing LoanSum access for inspections. These lockboxes cost approx. $35 and can be purchased from home improvement stores.

  • Construction: After the closing you will need to immediately proceed with the repairs. The faster you make the repairs and sell or refinance the property the more profit you will make.

  • Lien Waivers: Lien waivers must be obtained from any person who provides material, labor or who receives payment directly from you. Please scan and email or fax signed and notarized lien waivers to LoanSum at 314-569-5007. Lien waivers will be required in order to process construction draw requests. Lien waivers may be downloaded from the LoanSum website (under document download link).

  • *Repair Draw Requests: Draw requests for construction funds must be submitted online to LoanSum. You may only submit a draw request for repairs that have been completed. If approved, your draw will be transferred to your bank account via electronic funds transfer. You will be required to provide signed lien releases from any person or company providing labor or materials to the property. Draws will not be approved if the LoanSum inspector cannot access the property.
    *You will be required to pay for each inspection, which cost $175.

  • Repair Funds Disbursements: Borrowers must provide LoanSum with a voided check from their checking account and give written authorization for LoanSum to deposit approved construction funds directly into your bank account.

  • Selling Property: When all repairs are made you will now be able to market your house for sale. As you begin offering the property for sale LoanSum’s management team can assist you or your buyer in finding creative finance options with traditional mortgage brokers
1 Apply With Loansum
Fill Out Our Quick Form
2 Bring Us Your Deal
3 SUBMIT A LOAN REQUEST
Fill Out Our Quick Form