The last thing you need is to have a financing delay postpone your next commercial real estate venture, and knowing how to prepare for your loan application will both speed up the process and prevent unnecessary interruptions. Next time you're ready to put in an application for commercial real estate financing, here's what you should know about getting the loan to close faster.
Avoid Dealing with Inexperienced Lenders or Brokers
One of the biggest things that can draw out a loan closure is working with a lender who doesn’t have enough experience to expedite the process. This is especially true when it comes to choosing a financial partner who has experience with the type of loan product you're looking for. On the other hand, when you deal with experienced lenders, they’ll know exactly what to do to get you the type of loan you're looking for, and they’ll have the process down to a science, meaning they won’t waste any time in processing, approving, or closing your loan.
Make Sure You’ve Got All Your Financial Eggs in One Basket
- Make sure your personal and business tax returns have been filed for the previous two years if you're applying for a full doc loan. Keep in mind that alternative options are available if you are unwilling or unable to produce tax returns.
- Request current business and financial documents from your accountants and lawyers.
Be Prepared to Provide Follow-Up Information Quickly
After you file the initial application, there could be a great deal of back and forth between you and the lender, especially if more documentation or information is required. The easier you are to reach and the faster you can provide this information, the quicker you'll be able to secure your commercial real estate financing. Make sure your lender or broker has multiple ways to get a hold of you, and always follow up to make sure that documents you’ve sent were properly received.
Keep the Lines of Communication Open
A final key to fast commercial loan closings is staying on top of everyone involved with regular follow up. For instance, you'll want to keep in touch with the lender to ensure they have everything they need from you. Similarly, if you require an appraisal, you may need to act as the liaison to make sure everybody has what they need to approve and close your loan.
Securing your commercial loan is an essential stage in your venture. The good news is that if you're asking yourself how to close my commercial real estate loan as quickly as possible, then these simple tips will help you get the financing you need, when you need it, without any of the delays. No matter what type of loan you're looking for, you’ve come to the right place for commercial lending, so apply today to get the ball rolling on your next project.