It is no secret that commercial real estate financing takes time, sometimes a lot of time. You may feel helpless, as a borrower, after you sign on the dotted line of your application and find yourself just sitting around waiting, but there are some things that can be done beforehand to make the process go as quickly as possible.
Getting to the point of signing on the dotted line with commercial real estate financing is a flurry of activity. Negotiating, contacting lenders, getting the paperwork in line and making sure that you are staying on top of the terminology are all things that take a great deal of time. But once you sign, the process (at least from the point of view of the borrower) comes to a halt and you must just sit and wait. But if you properly prepare, you might end up having to wait less than other borrowers.
One thing that you can do to make sure that your commercial real estate financing application is not ignored is to quickly and thoroughly complete the forms that the lender gives you. It might seem like common sense, but this is a mistake that many borrowers make and will help you to stand out. What lender is going to want to work quickly for you if you do not do the same for them? By showing the lender, through your actions, that you are willing to work just as hard as they are, you are going to increase your chances of them working quickly on your loan application. This will greatly speed up the process for you.
It is absolutely critical that all of the forms that your lender will give to you be filled out as completely as you can possibly do them. Many commercial real estate financing forms ask for a tremendous amount of detail. Do not ignore this. Even if it feels like you are repeating what is already in your documentation. Having this done before the third-party appraisal of the property comes in will keep your loan at the top of the que for the lender and underwriter, but if you wait, and the appraisal comes in without your paperwork, you will quickly find your loan at the bottom of the priority list.
Another tactic that will help leave a good impression and make a lender want to work harder for your loan is to simply follow their rules. Again, it might seem like common sense, but many borrowers will try to argue about the different processes that lenders use. There is no point in doing so and the only outcome is going to be making the lender frustrated with you and not wanting to work as hard.
Is there anything that I can do while my commercial real estate financing application is being processed?
There is actually very little that you can do, outside of waiting. If you have properly prepared and have been responsive to your lender quickly and with attention to detail, you will likely get immediate attention. The one thing that you can do is to continue to be responsive. If your lender asks for further documentation or for other information about the property, get that information to them quickly. The more you drag your feet, the more your lender is likely to move on to another project. The key to commercial real estate financing is to be responsive and be thorough.
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.
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