How Lenders Underwrite a Double Close

Why is the deal underwritten instead of the borrower?

Because of where repayment comes from. A transactional loan funds the A–B purchase and is repaid from the end buyer's money at the B–C closing, usually the same day. If the end buyer's funds arrive, the lender is repaid. If they do not, the lender should never have wired. Your credit score does not change that equation, which is why Axelrad's transactional funding page says it underwrites the deal, not you. The live post on transactional funding and credit covers the credit question in detail.

What does the lender check, in order?

1. The A–B purchase contract. Fully executed, with all amendments. Price, property, parties and closing date.
2. The B–C resale contract. Fully executed by the end buyer whose funds will be verified. Price, property and closing date consistent with the A–B side.
3. The end buyer's funds. For a cash buyer, proof of funds. For a financed buyer, their lender and the conditions still open. Axelrad checks this first because it is what the loan is underwritten on.
4. Title readiness. Title confirms both legs are ready to close: liens, payoffs, required signatures and any curative work addressed.
5. The numbers. The advance requested, the earnest money already paid, and enough room in the B–C proceeds to repay the advance and fee.

Notice that steps 1 through 4 are about documents other people control: the seller, the end buyer and title. Your job as the borrower is mostly to collect them, check them against each other and send them together.

What gets a double close file declined or delayed?

What does the lender not need?

Per Axelrad's published requirements: no credit pull, no background check, no entity seasoning and no minimum deal size. Deals over $1 million are priced on a call.

A worked example

Example only, using the figures Axelrad publishes. The file:

• A–B contract at $200,000; $5,000 earnest money already paid.
• B–C contract at $230,000 with a cash end buyer who has sent proof of funds.
• Title confirms both legs are clear to close on the same afternoon.

The underwriting math is simple. The advance is $195,000. At 1 point, the fee is $1,950, so title must repay $196,950 from the end buyer's $230,000. After a hypothetical $3,000 of B–C closing costs, there is plenty of room. The file approves, Axelrad wires $195,000 to title, and both legs close.

Now change one fact: the B–C contract lists a different parcel number. Nothing else matters until that is fixed, because title cannot close a resale of a property that does not match the purchase.

How do you prepare a file that approves quickly?

1. Send both executed contracts together, with every amendment.
2. Include the end buyer's proof of funds, or their lender's contact and open conditions.
3. Have title's contact and a written status on both legs.
4. Check property descriptions, prices and dates for consistency before you send.
5. Flag anything unusual up front: two title companies, a hold-back, a payoff, a resale that might need more than a day.

The double-closing checklist has the same list in printable form.

Key takeaways

• Double close underwriting focuses on the exit: the B–C contract and the end buyer's verified funds.
• Title must confirm both legs are ready before any wire.
• Axelrad does not pull credit, run background checks or require entity seasoning for transactional funding.
• Mismatched contracts and unverified buyer funds are the most common problems.
• A complete, consistent file keeps the review moving.

Have both contracts?

Submit your file to Axelrad with both contracts, the end buyer's proof and your title contact for transactional funding.