Small Commercial Loan Timeline

Pre-Approval

1. Borrower submits all items on Executive Summary -Preliminary Approval form to Lender.

2. Lender calculates estimated loan proceeds utilizing the information provided by Borrower.

3. Lender conveys preliminary loan amount to borrower, and upon verbal agreement, a Conditional Commitment is issued along with third party questionnaires.

4. Loan amount indicated is based upon the submitted information and is subject to change upon full underwriting.

5. Borrower signs and returns Conditional Commitment, third party questionnaires, application fee and expense deposit.

6. Lender orders third party reports; (appraisal & environmental / engineering).

7. Due diligence package is issued to borrower; package includes: Cover Letter identifying third party vendors and confirming commencement of reports;

Checklist of information required by lender;
Mortgage Application;
Borrower Certifications (exhibits 1-13);

Samples and Requirements for:
Insurance (requirements - forward to insurance broker);
Borrower resume (requirements);
Zoning letter (sample - forward to local zoning official);
Title (requirements - forward to title company);
Survey (requirements - forward to surveyor)

Weeks 2-4

 

1. Third party reports in process.

2. Borrower submits required information

Week 5

1. Lender sends required items to lender’s counsel.

2. Lender receives third party reports.

3. Underwriting file is completed and loan is presented to committee.

4. Upon committee approval Lender issues Closing Notice.

Week 6

1. Lender’s Counsel issues documents for closing including a form of opinion letter.

2. (The final loan amount is set at rate lock, therefore loan documents will have blanks for the loan amount and interest rate).

3. Borrower signs and returns documents.

4. Upon receipt of signed documents lender’s counsel reviews all remaining legal documentation and upon satisfactory resolution of all outstanding issues, a rate lock is scheduled.

5. Loan rate is locked verbally with lender and confirmed by fax.

6. Upon receipt of written confirmation, loan documents are completed with the rate and loan amount and forwarded to the title company for recording the following day.