Application to Closing: Every Step of an Investor Loan
Investor loans follow a predictable path. Knowing each step, and what it needs from you, is the simplest way to close faster.
Short answer
Most investor loans move through the same steps: application and pre-approval, contract and appraisal, underwriting, conditions, clear to close and closing. Timelines vary by loan type and lender, but a complete file and quick answers to conditions are the biggest factors you control.
Key points
- Application, appraisal, underwriting, conditions, closing.
- A complete file is the biggest speed lever.
- Answer conditions fast, and all at once.
The steps
- Application and pre-approval. Share the property or your target, your credit range and your plan, and get terms to shop with.
- Contract and appraisal. Once you're under contract, the lender orders the appraisal, including a rent schedule on DSCR loans; see the appraisal rent schedule.
- Underwriting. The underwriter reviews the property, appraisal, credit, assets and any entity documents.
- Conditions. Requests for anything missing or unclear: a lease, a statement, an explanation.
- Clear to close. Final approval, and closing documents are prepared.
- Closing. You sign, funds move and the loan records.
Ready to start? Send your scenario and a KREC loan advisor will walk you through the next step. Talk to an advisor
What slows loans down
- Incomplete documents at application; see the investor loan document checklist
- A low appraisal; see appraisal came in low
- Insurance not bound in time
- Out-of-date entity documents
How to move faster
Send everything up front, answer conditions in one batch, book insurance early and keep your entity and reserve documents current; see lender-ready operations.
Frequently asked questions
How long does it take to close an investor loan?
It varies by loan type, lender and how complete your file is. Short-term loans can close quickly; long-term loans with appraisals and full underwriting usually take longer.
What happens during underwriting?
The underwriter verifies the property, appraisal, credit, assets and borrower or entity documents against the program's guidelines, and may issue conditions.
What are loan conditions?
Requests for documents or explanations the underwriter needs before final approval, such as a lease, a bank statement or proof of insurance.
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