Getting Prepared for a Commercial Loan Request

Understanding how to put together a commercial loan package can be one of the most useful tools for many investors and business owners. Even though it could feel frustrating and overwhelming, it's crucial to get this procedure right when thinking about your financial future. Here are some things you should know about putting up a financial package when applying for a commercial loan.

Preparing Your Commercial Loan Financial Package

Loan programs and lenders differ greatly from one another. The requirements unique to your lender should be carefully reviewed and followed. Here is a simple list of the things you should gather before getting in touch with lenders to request a loan quote. Of course, lenders will always ask for more information, but having this information at the ready puts you ahead of the game.

General Information

• Specific loan request (loan amount, term, interest rate, amortization, fixed or variable, etc.)

• Property address

• Color photos of the property

• Current ownership information

• Name of current lender and payoff amount (you should know if there is a prepayment penalty and how much it is, too)

• Description of any past or present loan defaults, bankruptcies, foreclosures, or lawsuits

• Copies of any purchase or lease agreements

  Financial Documents

• Personal financial statement (PFS), including a schedule of real estate owned for each sponsor

• Three years of personal/business tax returns

• The past 3 years of annual operating statements for the property, broken down month by month

• Trailing 12-month operating statement, broken down month by month

• Copy of the current rent roll

• Copy of any previous appraisals

 Property Documents

• Description of construction and property details

• Survey or building plans

• Schedule of capital repairs completed in the past 5 years, including description and cost

• Property management company information

• Copy of any previous appraisals