There is a misconception that private lending = loose lending. Some believe that a lender only needs to validate the security to assess a loan. This may be the case for a ‘loan to own’ lender, but not for a prudent and responsible private lender.

Private loans are assessed differently to traditional residential or commercial loans.  While each lender may have specific requirements and steps, our process involves:

1. Scenario Submission – providing as much information about the borrower background and creditworthiness, security, loan request, purpose and exit strategy helps us provide a more rapid response.
2. Funding Terms – Vado Private will issue high-level funding terms via email for the client to review for amending or acceptance. If the client and the lender agree to terms, the loan application process begins.
3. Indicative Term Sheet – a detailed document is issued outlining all of the terms and conditions upon which Vado Private intends to provide funding, subject to due diligence and credit assessment. A commitment fee is payable upon it’s acceptance and funding is allocated for the transaction.
4. Due Diligence – Vado Private will work through all required information to formally approve the application. This includes the ordering and review of valuation reports, credit reporting, completion of application forms and vetting of other information such as trust deeds, contracts of sale, discharge requests and loan statements.
5. Formal Approval – conditional approval becomes formal approval once valuations and due diligence is completed. A formal letter of offer is issued to the client for acceptance and the lender’s lawyers are instructed to issue loan documentation.
6. Loan Documentation – Lawyers are instructed to issue all formal loan documentation in preparation for settlement.
7. Certification – Lawyers will review signed documents and check for any outstanding matters to ensure settlement can be booked.
8. Settlement – be it refinance, purchase or otherwise, Lawyers will book and complete settlement of the loan facility, registration of mortgage and remit settlement proceeds from trust accounts.

Throughout the process, we maintain clear communication with you, the conveyancer, and other relevant parties to ensure a smooth transition from loan application to settlement.