10 Questions to Ask a Probate Lender Before You Sign

Question 1: What Is Your Exact Rate Range?

Ask for a specific range, not a vague "competitive rates" answer. Any reputable specialty lender can tell you immediately what their rate range is. A lender who hedges on this is either not being transparent or does not have a consistent pricing framework.

North Coast Financial's answer: Our rates run from 9.5% to 10.95% annually. Where your loan falls within that range depends primarily on the loan-to-value ratio and the complexity of the trust or estate structure.

Question 2: What Fees Will I Pay at Closing?

Ask for a complete list: origination fee, any processing fee, any underwriting fee, any document preparation fee, and any other lender charge. Then ask separately about third-party costs like title and escrow. A good lender will give you a full itemized estimate before you commit.

North Coast Financial's answer: We charge an origination fee of 1.25 to 1.95 points. We do not charge appraisal fees, lender document fees, or junk fees. Third-party costs such as title, escrow, and recording are standard and will be estimated in the loan commitment.

Question 3: Is There a Prepayment Penalty?

This is one of the most important questions for trust and probate loans, because these loans are almost always paid off early, either when the property sells, when the estate settles, or when the borrower refinances. A prepayment penalty can cost thousands of dollars when you pay off early.

North Coast Financial's answer: No prepayment penalty. You can pay off the loan at any time without any penalty. We want you to be able to move on when the time is right.

Question 4: How Many Trust and Probate Loans Have You Funded?

Experience matters enormously in this lending niche. Trust and probate lending is not the same as standard residential mortgage lending. A lender with limited experience may not know how to navigate beneficiary notice requirements, court confirmation issues, or the specific documentation needs of a California probate. Ask specifically about trust and probate volume, not just total loan volume.

North Coast Financial's answer: We have been lending against California trust and probate property since 1981, with over $1 billion funded across all loan types, including hundreds of trust and probate loans. This is our primary specialty, not a side product.

Question 5: Do You Charge for the Appraisal?

Some lenders charge $500 to $1,500 for a formal appraisal on every loan, regardless of whether the loan closes. This is an upfront cost that comes out of your pocket even if the deal falls through. Ask specifically whether the appraisal fee is charged if the loan does not fund.

North Coast Financial's answer: We use an in-house broker price opinion to assess the property's value. There is no appraisal fee at any stage of the process. We do not charge you for property review, period.

Question 6: What Is a Realistic Funding Timeline?

Push back on overly optimistic promises. A lender who says "we can fund in 3 days, always" is either misleading you or about to disappoint you. Ask what the typical timeline is and what specific things could make your deal take longer.

North Coast Financial's answer: Best case is 7 business days for a straightforward deal with a complete package. The typical case is 10 to 14 business days. Things that slow deals down include incomplete documents, title issues, and required court confirmation. We will tell you on the first call if your situation is likely to take longer.

Question 7: Are You Licensed in California?

This should be a quick, verifiable answer. California requires lenders to hold a DRE (Department of Real Estate) broker license to arrange real estate loans. Ask for the DRE license number and verify it on the DRE's public website. Also ask whether the lender holds an NMLS ID for consumer lending compliance.

North Coast Financial's answer: Yes. DRE Broker License #01870870. NMLS ID 323044. Both are publicly verifiable.

Question 8: Will You Lend While the Estate Is Still in Probate?

Not all private lenders will lend on property that is actively in probate. Some will only lend on trust property where the trust is settled and a successor trustee is in place. If your situation involves an active probate case, confirm upfront that the lender can work in that context.

North Coast Financial's answer: Yes. We lend on property in active probate, as long as the executor or administrator holds current Letters and the loan structure is consistent with the executor's authority. Court confirmation may be required in some cases, and we will advise on that early in the process.

Question 9: What Happens If I Need to Extend the Loan?

Trust and probate situations do not always resolve on schedule. Probate can take longer than expected. A sale can fall through. Find out before signing what the lender's extension policy is: can you extend, what does it cost, and how much notice is required?

North Coast Financial's answer: Extensions are available in appropriate circumstances. We will discuss extension terms before the loan closes so there are no surprises if you need more time. Extensions are not guaranteed but have historically been accommodated for borrowers in good standing.

Question 10: Can I See a Sample Loan Document Before Signing?

Any legitimate lender will provide sample documents upon request. Reviewing the note, deed of trust, and any personal guarantee language before you are at the closing table is a basic consumer protection measure. If a lender refuses or is evasive about this, that is a warning sign.

North Coast Financial's answer: Yes. We will provide sample documents upon request to any serious borrower or their attorney for review. We want you to understand what you are signing before you sign it.

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