What closing costs should I expect on a hard money loan?

Typical closing costs include an origination fee (usually 1 to 3 points), escrow and title fees, document preparation fees, recording fees, and prepaid interest. The exact amount varies by deal size and state, but plan for closing costs to run between 2% and 5% of the loan amount. Veristone Capital provides a full cost breakdown before you commit to the loan.

How much money do I need to bring to closing?

You will need to bring your down payment (the difference between the loan amount and the purchase price), plus closing costs. These funds must be wired or delivered as a cashier's check. Personal checks are not accepted at closing. Your escrow officer will send a final settlement statement with the exact amount a day or two before closing.

How does escrow work on a hard money loan?

Escrow works the same way it does on any real estate transaction. A neutral third-party escrow company holds all funds, collects signatures, and coordinates the transfer of title. Once all conditions are met and both sides have signed, the escrow officer records the deed and disburses funds. Veristone Capital works with experienced escrow companies across the Western United States.

How long does it take to go from approval to funding?

Veristone Capital can move from approval to funding in as few as 5 to 10 business days. The main variables are how quickly the appraisal or BPO comes back, how fast title clears, and how promptly the borrower returns signed documents. Delays usually come from the borrower's side, so staying responsive keeps things on track.

What happens on closing day?

On closing day, you sign the loan documents at the escrow or title company. This includes the promissory note, deed of trust, and any other loan-specific paperwork. Once all signatures are collected and funds are verified, the escrow officer submits the documents for recording with the county. Funding typically happens the same day or the next business day after recording.

Is title insurance required on a hard money loan?

Yes. Veristone Capital requires a lender's title insurance policy on every loan. This protects the lender (and indirectly the borrower) against liens, encumbrances, or ownership disputes that were not discovered during the title search. Borrowers can also purchase an owner's title policy for their own protection, and we recommend doing so.

Who handles the closing on a Veristone Capital loan?

Closing is handled by a licensed escrow or title company. Veristone Capital has established relationships with closing agents across the Western United States who are familiar with private lending transactions. This matters because not every title company is comfortable with hard money closings, and working with the right one prevents unnecessary delays.

What are the most common closing pitfalls borrowers run into?

The biggest issues are slow document turnaround, wiring funds at the last minute, and title problems that surface late in the process. To avoid surprises, return all paperwork as soon as you receive it, confirm your wire instructions directly with your escrow officer by phone, and make sure you disclose any known title issues upfront. Borrowers who stay organized and communicative close faster and with fewer headaches.

What Borrowers Ask About Hard Money Loan Closings and Escrow

Closing on a hard money loan is faster than conventional financing, but there are still costs, documents, and steps you need to prepare for. Below are the questions borrowers ask most often about the closing and escrow process at Veristone Capital.

What closing costs should I expect on a hard money loan?: Typical closing costs include an origination fee (usually 1 to 3 points), escrow and title fees, document preparation fees, recording fees, and prepaid interest. The exact amount varies by deal size and state, but plan for closing costs to run between 2% and 5% of the loan amount. Veristone Capital provides a full cost breakdown before you commit to the loan.
How much money do I need to bring to closing?: You will need to bring your down payment (the difference between the loan amount and the purchase price), plus closing costs. These funds must be wired or delivered as a cashier's check. Personal checks are not accepted at closing. Your escrow officer will send a final settlement statement with the exact amount a day or two before closing.
How does escrow work on a hard money loan?: Escrow works the same way it does on any real estate transaction. A neutral third-party escrow company holds all funds, collects signatures, and coordinates the transfer of title. Once all conditions are met and both sides have signed, the escrow officer records the deed and disburses funds. Veristone Capital works with experienced escrow companies across the Western United States.
How long does it take to go from approval to funding?: Veristone Capital can move from approval to funding in as few as 5 to 10 business days. The main variables are how quickly the appraisal or BPO comes back, how fast title clears, and how promptly the borrower returns signed documents. Delays usually come from the borrower's side, so staying responsive keeps things on track.
What happens on closing day?: On closing day, you sign the loan documents at the escrow or title company. This includes the promissory note, deed of trust, and any other loan-specific paperwork. Once all signatures are collected and funds are verified, the escrow officer submits the documents for recording with the county. Funding typically happens the same day or the next business day after recording.
Is title insurance required on a hard money loan?: Yes. Veristone Capital requires a lender's title insurance policy on every loan. This protects the lender (and indirectly the borrower) against liens, encumbrances, or ownership disputes that were not discovered during the title search. Borrowers can also purchase an owner's title policy for their own protection, and we recommend doing so.
Who handles the closing on a Veristone Capital loan?: Closing is handled by a licensed escrow or title company. Veristone Capital has established relationships with closing agents across the Western United States who are familiar with private lending transactions. This matters because not every title company is comfortable with hard money closings, and working with the right one prevents unnecessary delays.
What are the most common closing pitfalls borrowers run into?: The biggest issues are slow document turnaround, wiring funds at the last minute, and title problems that surface late in the process. To avoid surprises, return all paperwork as soon as you receive it, confirm your wire instructions directly with your escrow officer by phone, and make sure you disclose any known title issues upfront. Borrowers who stay organized and communicative close faster and with fewer headaches.

Tim Mushen

VP of Marketing and Technology

Disclaimer: Veristone Capital does not provide legal or financial advice. The information on this page is for general informational purposes only and should not be construed as legal, financial, or tax advice. Consult a qualified attorney, accountant, or financial advisor to evaluate your specific situation before making any investment or lending decisions.

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What Borrowers Ask About Hard Money Loan Closings and Escrow

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