7 Questions To Find Out If Your Lender Can Actually Fund Your Deal

Finding a lender isn’t difficult. Finding the right lender? That’s where things get tricky.

We’ve seen it all: investors scrambling to close, deals falling through last minute because funding wasn’t really there, and new borrowers trusting a smooth pitch without asking the right questions.

Let’s walk through the 7 essential questions every real estate investor should ask to separate the lenders that can deliver from those who can’t. These questions aren’t just about trust, they’re about getting your deal to the closing table.

1. Are You Lending Your Own Money or Brokering the Deal?

This is your foundation. If the person you’re talking to isn’t funding the deal directly, you’re likely dealing with a broker, maybe even multiple middlemen. That can mean delays, shifting terms, or uncertainty when it counts. Direct lenders can typically offer faster decisions and better transparency. That’s gold in a hot market.

2. What Kind of Properties Do You Usually Need Funded?

Not all lenders are into the same stuff. Some love residential flips. Others stick to commercial. Some won’t touch a heavy rehab. If your project falls outside their comfort zone, you could get a “maybe” when you need a “yes.” Know their niche and make sure it matches yours.

3. What Is Your Minimum and Maximum Loan Amount?

It might sound obvious, but plenty of investors skip this one. If your deal is too small (or too big), the lender may not move forward, or might try to force the numbers. Ask this upfront and you’ll save yourself time and stress.

4. Is Lending Based on ARV or Purchase Price?

Loan structure is where deals are made or broken. Lending based on ARV (After Repair Value) gives you more leverage, especially if you’re adding value through renovation. If a lender only lends based on purchase price, you may need to bring more capital to the table. Clarify the lender’s formula early so you can build your numbers with confidence.

5. What Are Your LTV and LTC Limits?

Let’s translate:

• LTV = Loan to Value
• LTC = Loan to Cost

These ratios determine how much of the deal the lender is willing to cover. For example, a 70% LTV means you’re expected to cover 30% of the value yourself (through equity or cash).

Will your lender finance rehab costs? And how will draws work?

6. What Are the Total Fees, And When Are They Due?

A low interest rate sounds great until it’s buried under origination points, underwriting fees, and additional charges.

Look deeper:

• Are there extension fees if your timeline runs over?
• Are draws free, or is each one billed?
• Do you pay upfront or at close?

Get it in writing. Transparency now saves the headache later.

7. How Long Does it Take to Fund?

Timing is everything. If your contract closes in 14 days but your lender needs 30, you’ve got a problem.

Ask about their average timeline from application to funding and whether they’ve closed under tight deadlines before. Ask if they’ve funded deals in your market. Local experience can go a long way.

Red Flags to Watch Out For

• Vague answers or evasiveness
• No track record or references
• Sudden fee changes before closing
• Lack of clarity about the underwriting process

When in doubt, trust your gut and ask more questions.

Bringing It All Together

Real estate investing moves fast, and funding is one of the biggest variables. Asking the right questions isn’t just about qualifying your lender, it’s about protecting your time, your capital, and your reputation.

Whether you’re flipping your first home or scaling your portfolio, a reliable funding partner makes all the difference.

Ready to have better conversations with lenders? Start with these 7 questions and trust your instincts along the way. Deals fall apart when people rush the process. Take your time, get clarity, and work with lenders who treat your deal like it’s their own.

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