To make sure a loan will provide them a good return, lenders care mainly about two things during the loan application process: Your personal financial strength as a borrower, and your experience as an investor or operator of income-producing assets (whether as a business owner, landlord, or property manager).
What Should You Expect?
After submitting your loan needs to the experts at InvestmentProperty.loans, you will receive one or more loan quote offers from the lenders in our network. After selecting from those offers, you may need to provide the selected lender with a little more information before beginning the process toward a formal loan application.
Once you submit the application, the lender will pre-underwrite your loan to evaluate the risks related to your credit, capacity, and the condition of your collateral.
Once the preliminary underwriting is complete, the lender will provide you with a Term Sheet – also known as a conditional commitment letter – outlining the full expectations for the loan, and may order third-party reports such as an appraisal and any environmental screenings if necessary. Once those third-party reports are complete and final, you will receive a commitment letter and close the transaction.
In the early phases of the application process, you should expect prospective lenders to ask for resumes or bios demonstrating your track record with past commercial mortgages, investment properties, or small businesses.
As you move through the underwriting process, your lender will also need more formal documentation (as we discuss in the Documentation section) in order to underwrite your loan. The lender will also conduct a credit check, and oftentimes request a full background check
In addition to the items discussed below, the lender may want to review your business plan, personal references, financial statements, or current proof of your net worth.
How Long Will It Take?
Every lender operates on its own schedule, and some are faster than others. Having the experts at InvestmentProperty.loans connect you to the right lenders will streamline the process to help things move as quickly as possible.
In addition, the timeline varies depending on your mortgage needs: For short-term bridge financings, we can help borrowers see fast closings within 30 days. For first-lien mortgages up to $5M, 30 days may be feasible but longer timelines between 45 and 60 days may also be expected.