In California’s competitive real estate market, timing often decides who wins a deal. Hard money lenders like Lending Bee are built to close in days—not months—but delays still happen when investors or brokers miss key steps.

The good news? Most hard money loan delays are preventable. With the right checklist and preparation, you can cut days (sometimes weeks) off the process and keep your deal on track.

The Most Common Mistakes That Cause Delays

1. Incomplete Loan Applications

Leaving out details about the property, rehab budget, or exit strategy is one of the biggest culprits. Every missing piece means back-and-forth emails that eat up precious time.

How to avoid it:

  • Fill out the application in full—don’t leave blanks.
  • Submit your purchase contract and scope of work upfront.
  • Be ready with contractor bids if it’s a rehab project.

2. Title Issues That Weren’t Flagged Early

Liens, unpaid taxes, or ownership disputes can stall underwriting. In some cases, they take days to resolve—and you may lose your earnest money if you can’t close.

How to avoid it:

  • Run a preliminary title search before going under contract.
  • Disclose any known issues (liens, HOA disputes, etc.) at application.

3. Unrealistic Rehab Budgets

Submitting a lowball budget that doesn’t align with the project scope triggers underwriting questions and revised approvals.

How to avoid it:

  • Use real contractor bids, not “ballpark” estimates.
  • Build in a contingency (usually 10–15%) for unexpected costs.

4. Slow Responses from Borrowers or Brokers

Even with a streamlined lender, deals stall when borrowers don’t reply quickly to requests for documents or signatures.

How to avoid it:

  • Assign one point of contact to handle communication.
  • Respond to lender emails same-day whenever possible.
  • Use e-sign tools to avoid printing/scanning delays.

5. Unclear Exit Strategy

Private lenders want to know how you’ll pay the loan back. If the plan isn’t clear, underwriting slows while you explain.

How to avoid it:

  • Be specific: “Refinance with a DSCR loan in 6 months” or “Sell post-rehab at $500,000 ARV.”
  • Provide supporting comps for your ARV assumption.

The Lending Bee Closing Checklist

Here’s what we recommend every borrower or broker have ready before submitting:

✅ Purchase contract (signed)
✅ Rehab budget with bids and contingency
✅ Exit strategy in writing (sale or refinance)
✅ Contractor info (if applicable)
✅ Preliminary title report
✅ Proof of funds for down payment and reserves

When this checklist is complete, most loans can be underwritten and approved in 24–48 hours—with closings in 5–7 business days.

A Real Example

🏚 San Diego investor needed a $450K loan for a flip.

  • Submitted full application, budget, and exit plan same-day.
  • Clear title report came back in 24 hours.
  • Loan was approved in 48 hours and funded in 6 business days.

The investor was able to secure the deal while competing offers fell through because their financing was too slow.

Why Brokers Care About This Too

If you’re a broker, nothing kills credibility faster than telling a client you can close in a week… then missing the deadline. By preparing your clients with the checklist above, you’ll:

  • Build trust with both investors and lenders
  • Get repeat business from borrowers who value your efficiency
  • Protect your pipeline from deals that collapse due to paperwork

Hard money loans are designed for speed—but only when everyone involved is prepared. The most common mistakes that delay hard money closings come down to missing documents, unclear budgets, or poor communication.

At Lending Bee, we’ve simplified the approval process so investors and brokers can focus on the deal, not the paperwork. Stick to the closing checklist, and you’ll not only close faster—you’ll win more deals in California’s hottest markets.

Want to see how fast we can get your deal funded? Get pre-qualified with Lending Bee today.