So that you understand what to expect, this page is designed to give you an outline of our loan process.
Closing a small-balance commercial mortgage doesn’t have to be complicated. With your full cooperation, generally we are able to close a loan within 30 days.
1. Pre-Approval
The commercial mortgage transaction process begins when you submit your deal in the form of a complete loan application and credit report. Download and fill out the application on your computer or print and fill it in manually (then scan and email to us). No need to sign it. We will send it back to you for an electronic signature.
When we send you the application for signature, we will include a credit authorization, also for your signature, which allows us to access your credit report.
From there, our team will analyze a few important aspects, including:
- Property address, including ZIP code
- Property type
- Loan amount requested
- Estimated market value of the property
- Net operating income
- Borrower credit score
If your loan request fits within our guidelines, you will receive a Letter of Intent (LOI), indicating that we are interested in financing the deal. This typically occurs within 24 hours of submission.
2. LOI Acceptance
The LOI you receives will include the investor’s pre-approval terms, payment instructions, and additional key conditions.
Once the LOI is accepted and signed, it’s your job to return it to us, along with the $500 upfront fee.
At that point, we will really get things moving by ordering the property appraisal, title, and any necessary 3rd party reports. This is typically competed within 48-72 hours from when we receive the signed LOI.
3. Processing & Underwriting
In two or three weeks, our team will receive the completed appraisal and results of the other requested 3rd party reports. Then it’s time for our underwriting team to review all required financials and credit documentation.
Of course, the amount of documentation analyzed depends on the loan program you chose at the beginning of the process. For instance, the Lite Doc Investor Program is a solution that gives you investor clients the opportunity to secure financing without having to produce tax returns or a 4506T.
It is during this stage that it’s important for you to regularly communicating with us. If there are any additional documents required the quicker we receive them the better. The goal here is to quickly resolve any missing documentation issues so that the deal can close on schedule.
4. Approval
If there are no issues with the appraisal or 3rd party reports, the underwriting team will pass the deal on to the final underwriting stage. This is when you receive your final, official approval and the final loan terms are delivered to you. Once you’ve accepted the terms, (signed and returned), the Closing team will work with your Closing Agent to schedule the closing. The approval process should take about 24-72 hours to complete.
5. Closing & Funding
After the Closing Agent sets a date, the title company will prepare you for the closing by instructing you to bring all necessary documentation, identification and proceeds, if any, to the event. Once there, you will sign the closing statement and accompanying legal documents.
If this is a cash-out transaction, you can expect to receive funds within 24 hours of the closing.
If you submit accurate information at the beginning of a transaction and complications are minimized throughout the process, we can close and fund the small-balance commercial transaction in 30 days on average. The key is quickly receiving any necessary documentation when requested from you by us.