If you are applying for a commercial real estate loan and would you like to have your commercial loan or apartment loan flow smoothly and close in a timely manner, the easiest way, and completely within your control, to ensure a quick, easy, and accurate closing, is through preparation.
In commercial lending, preparation means knowing what an commercial real estate loan underwriter is looking for, and providing it, before they ask.
Below is a sample of a commercial mortgage borrower checklist that will help with your preparation. The following is a list of items that you will need to prepare and make available to the commercial lender the day you apply, or as soon as possible thereafter:
Commercial Mortgage Loans General Documentation
# 3 most recent years tax returns - both personal and business -
# Extensions for any filings - if applicable -
# 3 months most recent bank statements - both personal and business -
# Personal financial statements - updated within last 60 days -
# Year-to-date business operating statements - if applicable -
# Year end business operating statements if business tax returns are on extension
# Personal resume - required for investment properties if self managed -
# Property management resume, or letter of credentials, if property is professionally
managed
# Letter of explanation for any derogatory credit, including: slow pays, charge-offs, liens,
judgments, child support, etc.
# Schedule of real estate holdings - include purchase date, purchase price, and current
mortgage amount
# Subject property rent roll - if not 100% owner occupied - if property is owner occupied
and held in a different entity, i.e. LLC, and leased back to the business, then rent roll
and copy of the lease must be provided
# Subject property leases - see above for owner occupied property
# Subject property income and expense statements, including year end and year-to-date
# For investment property with single or anchor tenant, include tenant financial statements
Commercial Mortgage Loan Purchase Documentation
# Valid purchase contract - including any amendments -
# Selling agent or individual contact information
# Verification of escrows
# If seller is holding a subordinate position, include terms of the note
# Property insurance information
Commercial Mortgage Loan Refinance Documentation
# Payoff information, including: mortgagor or service provider contact information,
payoff statement, and payment history
# Title policy
# Survey
# Property insurance information
# If there is subordinate financing on the property, you must provide a subordination
agreement