When I am reviewing a loan file one of the first things I look at and look for is the executive summary or loan summary.  A well written executive summary shows the quality of the borrower and the value of the project. The goal of well written loan summary is to give the underwriter enough information to understand the commercial loan and to determine if the loan will fit within the lender's lending guidelines. Below are items that should be included in a well written and complete executive summary.

Salient Facts

 Lenders want to know the details of the commercial real estate loan. Property location, property type, number of units, lot size, and the square footage are all important in the underwriting process. Also include the loan amount and property value. I am always amazed when a loan summary is missing the loan amount or the property value. If the property is being acquired, include the purchase price. You might also include useful ratios such as loantovalue (LTV), loantocost (LTC), and the debt service coverage ratio (DSCR). Rounding these ratios to the nearest 5 or 10 integer can appear deceiving. I personally prefer that these ratios be expressed to two decimal places....<< MORE >>