Avoiding Common Delays in the Private Lending Process

When timing matters, even small delays can derail a project. Private lending is known for its speed and flexibility—but only if borrowers come prepared. If you’ve ever wondered why your loan didn’t move as quickly as expected, chances are it hit one of a few common roadblocks. The good news? Most of them are easily avoidable.

Below are some of the most frequent causes of delays—and how you can stay ahead of them.

1. Incomplete Documentation

One of the biggest slowdowns in any loan process is missing or delayed paperwork. At a minimum, lenders need:

• Property address and details
• Entity documents
• Purchase contract or payoff demand
• Insurance agent contact
• Borrower financials (bank statements, REO schedule)

Tip: Having these items organized and ready to send can cut days off your approval timeline. If you’re not sure what’s needed, ask your lender upfront for a checklist.

2. Unclear Title or Ownership Issues

A clean title is critical. If there are lingering liens, boundary disputes, or unresolved probate or trust issues, the loan can’t move forward.

Tip: Order a preliminary title report early—or ask your lender to do it—and review it with your escrow/title team for any red flags.

3. Vague or Incomplete Construction Budgets

If you’re seeking a loan with renovation or construction funds, a detailed and realistic budget is key. Missing line items, vague cost estimates, or poor contractor documentation will stall underwriting.

Tip: Provide a full budget broken down by scope of work, include permits where needed, and share GC experience. The more detail, the better.

4. Missing Exit Strategy

Private lenders always want to know: how will the loan be repaid? A lack of clarity on the exit—whether it’s a refinance, sale, or long-term hold—can signal risk.

Tip: Be prepared to share your timeline, comps, and any refinance or listing plans. A clear exit builds confidence.

5. Slow Communication

When a lender has to follow up repeatedly for the same items, it slows everything down.

Tip: Assign a point of contact who can respond quickly, coordinate documents, and keep the process moving.

Bottom Line

Delays in private lending are rarely caused by the lender—they’re usually the result of missing information. The more complete and organized your submission, the faster your deal gets funded. If you’re working with a lender like TaliMar Financial, strong preparation not only speeds things up—it also builds long-term trust for future deals.

Need help preparing your next loan request? Our team is happy to walk you through what’s needed.

Disclosure: TaliMar Financial, Inc. dba TaliMar Financial, CA DRE License 01889802 / NMLS 337721. For information purposes only and is not a commitment to lend. Programs, rates, terms and conditions are subject to change at any time. Availability dependent upon approved credit and documentation, acceptable appraisal, and market conditions.