How to Ensure that your Application for a Commercial Real Estate Mortgage Loan will be Approved

If you’ve looked to finance a commercial property in the last 3 to 5 years, you know that banks are happier to say no then they are to say yes. In this environment, it is imperative that you know your options.

The first and most important step to ensuring that your application will be approved is making sure that your loan officer puts together a winning loan package. The loan package describes who you are to the lenders. It needs to put your best foot forward as it explains your challenges in the most honest and accurate way. Banks and lenders will deny your loan on the slightest pretense of instability. Provided that you are qualified, as long as you follow the steps in this outline, your loan application should be successful.

Step 1:

Gather all your financial documentation and keep it up-to-date.

Step 2:

Gather all documentation for the property being financed and keep that up-to-date as well. This includes expense bills, tax bills, utility bills, audited financial profit, and loss rent roll leases bank statements management, company reports, and everything else.

Step 3:

Find an experienced professional, like Aurum & Sharpe, who has relationships with all the best lenders and is well respected in the marketplace.

Step 4:

Have an honest and detailed conversation with your mortgage broker to ensure that all potential issues are uncovered upfront. Banks do not like surprises.

Step 5:

Follow all guidance and recommendations made by your loan professional as they assure your loan through the process.

Step 6:

Act on any required conditions in a timely manner to ensure that your loan package does not stagnate in the lender’s loan committee. Time kills deals.

Step 7:

Once your loan officer has secured your commitment and the loan terms are locked in, move expeditiously to handle any last minute issues that arise. Do not delay to take care of something tomorrow that you could take care of today. Be aware that no matter how qualified you may be, or how perfect your paperwork may be, lenders will always come up with something they need clarification on, or something that they have to double and triple check before funding you alone.

Step 8:

Get ready for the closing. Make sure you have all the information for where the loan is to be funded and who is getting paid off, all your fees are accounted for, and that your mortgage broker and all other services will be paid.

Step 10:

Go to the closing and fund your loan.

Step 11:

Keep up with any post closing reporting requirements, etc.

Ready to get your loan application started?

If you’re ready to begin the mortgage application process, please contact us to schedule a complimentary consultation to answer any questions that you may have and to learn more about the timeline and costs of obtaining financing.

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