You deserve a transparent, and smooth transaction process from your lender. If you understand each step of the process and see unfold the way you were told it would, then you will have the confidence to complete the process.

The Process “Snapshot”

1. Loan submission
2. Lender’s acceptance
3. Conditions
4. Underwriting
5. Closing

Depending on your unique needs and what you would like to accomplish, you will have to submit specific paperwork to move forward through each of these stages and get your loan finished as quickly as possible.

Your needs must be met for your business to thrive whether you’re and investor or owner-occupied property owner. You as a borrower should know what to expect regarding your lender’s guidelines and timelines. Communication is key. When working with a lender, they need to be available to you. For example a lender that provides you with a point of contact that is reliable and reachable via text, online, email and by phone just makes you feel important.

Three steps that your lender will take to make you feel comfortable and get your deal finished 

Set Expectations for You 

The first thing lenders should do is get very acquainted with each of the clients they work with on their deals. Every client is different, so it’s crucial to keep them informed about their transactions to make certain there is a fit for your current needs.

In some cases, transaction length will be the deciding factor for a client choosing between a bridge loan and permanent financing. Keeping this in mind it’s also important for the lender to communicate these timelines to borrower.

Even if a lender’s client doesn’t have a pressing need for financing, it’s still a smart idea to explain the transaction process and set expectations for each step. Over-communicating early on could save clients significant headaches when approaching closing.

For example, borrowers who are not familiar with commercial lending may not fully understand how long the property appraisal process takes or how much it costs. Lenders can eliminate the element of surprise by simply sharing information.

As you likely know, every commercial loan presents unique challenges – no two fundings are alike. Helping your borrower feel confident and comfortable regardless of this reality will create a much smoother transaction process for all parties.

Submit a Complete Package

One of the easiest ways to experience a smoother (and quicker!) transaction is by providing a complete package of the required documentation at the beginning of the process. Submitting incomplete documents will often cause delays in the process. Your lender should provide a full and detailed required documents list so that clients and work through the list and prepare the required information.

Could One of These Programs Work for You

You can see what our direct lender requires for each program below. When it comes time to submit these documents, remember that you can use DocuSign to accelerate the process and we use AES 256 SSL encryption standard.

Submission Requirements for Full Doc Program:

SHF completed/signed application OR 1003/personal financial statement/other application PLUS loan supplement form

Tri-merged credit report

Rent roll (multi-tenant properties)

P&Ls/operating statements last 2 years and YTD for property

Last 2 years’ tax returns

Purchase contract (if applicable)

Submissions Requirements for Lite Doc Investor Program:

SHF completed/signed application OR 1003/personal financial statement/other application PLUS loan supplement form

Tri-merged credit report

Rent roll (multi-tenant properties)

P&Ls/operating statements last 2 years and YTD for property

Purchase contract (if applicable)

Submission Requirements for SFR Program:

SHF completed/signed application OR 1003/personal financial statement/other application PLUS loan supplement form

Tri-merged credit report

Rent roll (multi-tenant properties)

P&Ls/operating statements last 2 years and YTD for property

Purchase contract (if applicable)

Communicate With All Parties

Communication is key when closing a commercial loan. Your transaction manager is responsible for making sure everyone is on the same page at every step of the transaction process.

Hopefully, your transaction manager can develop a strong process relationship with you as this will help get your deal completed very quickly.  

Good lenders offer excellent products and set milestones for each client throughout the transaction process. Delays occur in some deals and good lenders with dedicated transaction managers schedule calls to overcome them in a timely manner. Whether it’s a kickoff discussion between all parties or a check-in once the lender receives all necessary 3^rd party reports, these communication touchpoints can reduce delays and limit borrower confusion.

What’s Next?

The commercial transaction process is complex, but it doesn’t have to be impossible. With these simple steps, you can be on your way to experiencing a smooth closing.

Interested in experiencing our lenders commercial loan transaction process? Our lender offers very flexible products that have heled thousands of business owners and investors get the funding they need when the banks cannot or will not help. 

To make certain that you get the information that you need, please complete our short form and we’ll direct you to the proper point of contact.