How a Broker Referral to a Private Lender Works

A broker referral to a private lender is simple in outline: you package the deal, submit it through the lender's referral form, confirm you are authorized to speak for your client, and the lender reviews it and follows up with you. The details below help you do it cleanly, keep your client relationship intact and avoid wasting your time and the lender's.

This is how our referral process works at US Lending & Company, and much of the advice applies to any private lender you work with.

Step one: decide whether the deal fits

Before you submit, make sure the request matches what a private lender does. Private money suits deals where speed, flexibility or an unusual property or borrower profile gets in the way of conventional financing. Our underwriting is equity-led, which means we look at property equity, the borrower's capacity to make payments and the exit, rather than relying on a credit score. If you want a sense of what we weigh, read what private lenders look at when underwriting.

Not every deal fits, and a quick honest conversation up front saves you time. See our broker guide to placing a deal with a private lender for the larger picture.

Step two: package the file

A well-packaged referral is faster to review. Prepare:

• The property address, type and current condition
• The loan purpose: purchase, refinance, construction or renovation
• The requested loan amount and your estimate of value
• The borrower or entity, and a brief description of their experience
• Existing liens, if any
• The exit: how the loan gets repaid or refinanced
• Anything unusual, stated up front

The last item matters most. A problem you disclose early is a conversation. A problem the lender finds later is a loss of trust. Our documents page shows what is commonly requested.

Step three: submit through the referral form

Our referral form takes five short steps. You can refer a deal from any of the 50 states, and we confirm receipt of your submission. A member of our team follows up within one business day.

Step four: client-contact authorization

When you refer a deal, you are sharing a client's financial and property information. Make sure you have their permission to do so and to have the lender contact them if needed. State clearly in your submission whether the lender may reach out to the client directly or should work only through you. Setting that expectation at the start prevents confusion later and protects your client's trust.

Protecting the relationship

Brokers worry, reasonably, about whether a lender will go around them. Ask any lender how it handles broker-originated clients, and get the terms of your arrangement in writing where appropriate. Equally important is how you manage your client's expectations. Describe timing as a range with conditions, not a promise. We can offer approval in as little as 24 hours and funding in as little as seven days, subject to a complete file, underwriting, title review and property valuation. Approval is not guaranteed. A client who understands that is a client who stays with you.

What happens after you submit

1. Receipt and follow-up. We confirm we received your referral and follow up within one business day.
2. Initial review. We review the deal against our programs and may ask clarifying questions or request missing items.
3. Underwriting. We look at equity, capacity and exit, and order title and property valuation.
4. Decision and terms. If the deal proceeds, we set out the terms. Every application is reviewed individually.
5. Closing and funding. Once conditions are cleared, the loan moves to closing.

Throughout, we keep you informed. Our article on why private loans get declined is useful to share with clients before submission.

About compensation

Our broker program pays among the highest commissions in the business. Specific terms are discussed when you submit a deal, and we do not publish figures here.

Ready to refer a deal? Use our referral form, or call (800) 943-1314 to talk it through first. You can also apply directly for a client. General information only, not legal, tax or investment advice.