The Commercial Loan Process - 5 Easy Steps
Step 1: Rapid Pre-Qualify
When you complete the
commercial application/questionnaire, you provide us
with a financial “snap shot” of your deal. This will give us the
data we need to assess the fundamental merits of your deal and
show us what kind of financing we may be able to provide for
you. We will pre-qualify your loan within 48-hours and inform
you of the viability of your request. All you need to do is fill
out the form and fax it to 248-281-0567 or email it to
info@castlecommercialcapital.com
to get started today.
Step 2:
Client Interview
Next we will set up a teleconference with you to dig into the
details of your deal and the financial information you provided.
This crucial step allows us to thoroughly examine your needs and
goals, the performance of the property, the possible obstacles
within your deal. This interview allows us to prepare your deal
properly so we can shop it to our network of over 120 lenders. At
this stage we will require you to submit a loan application, sign a
non-circumvent non-disclosure agreement, provide copies of your
financial reports and photos of the property.
Step 3:
Loan Packaging & Underwriting
In this lending market, the active lenders are being swamped with
loan requests. To get your deal at the top of the pile, it must be
packaged properly with all the necessary underwriting data they need
to commit to funding your loan. We will create an industry accepted
Commercial Mortgage Securities Association (CMSA) standard package.
The CMSA Investor Reporting Package (CMSA IRP®) is a transparent,
standardized set of bond, loan, and property level information
provided for all commercial mortgage-backed security (CMBS)
securitizations. This standard ensures all the elements of your deal
are structured in the format that many lenders use to underwrite and
approve their deals. We will send your completed package to lenders
who are financing deals in your respective asset class. We will
search for the one who is offering the best rate and terms that fit
your needs.
Step 4:
Letter of Intent
The interested lender will then provide a Letter of Interest (LOI)
or sometimes referred to as a "term sheet".
This means they are prepared to fund your deal pending their due
diligence. The LOI will spell out the rate, terms, due diligence
requirements, fees, and other details you need to make a sound
decision on your financing. However, this is not a loan commitment
to fund but an invitation to submit a complete loan package and the
terms and conditions under which your deal can be done if it is your
deal is acceptable . Also, be aware that the LOI is subject to
change based on the lenders due diligence.
Step 5:
Due Diligence & Closing
Upon your acceptance of the LOI, the lender will then order an
appraisal and an environmental study for the property to determine
its condition, performance, and market value. They will also request
additional financial, legal, and tax data to complete their due
diligence process. Once they are satisfied that your loan is a worthwhile
investment they will issue a loan commitment and seek to schedule a closing. Please note that this step
is the longest and most unpredictable in the process. The more
accurate information that you provide at the beginning of the
process the more rapidly you will move through this process.
Feel free to call us at 248-327-0566 if you want more info. |
