Typical documents include, profit and loss statements, tax returns, rent roll, property photos, personal financial statement and capital improvements summaries. Read below to learn more about the documents required to obtain a commercial loan.
Are you applying for a commercial real estate loan? Would you like to have your commercial loan flow smoothly and close in a timely manner? Well of course you would, after all who wouldn't. The problem is that most borrowers aren't sure how to make this happen. The easiest way to ensure a quick, easy, and accurate closing, is through preparation. In commercial lending, preparation means knowing what a commercial real estate loan underwriter is looking for, and providing it, before they ask.
Commercial Mortgage Loans - Documentation
· 3 most recent years tax returns - both personal and business -
· Extensions for any filings - if applicable -
· 3 months most recent bank statements - both personal and business -
· Personal financial statements - updated within last 60 days - Year-to-date business operating statements - if applicable -
· Year end business operating statements if business tax returns are on extension
· Personal resume - required for investment properties if self managed. Property management resume, or letter of credentials, if property is professionally managed
· Letter of explanation for any derogatory credit, including: slow pays, charge-offs, liens, judgments, child support, etc.
· Schedule of real estate holdings - include purchase date, purchase price, and current mortgage amount
· Subject property rent roll - if not 100% owner occupied - if property is owner occupied and held in a different entity, i.e. LLC, and leased back to the business, then rent roll and copy of the lease must be provided.
· Subject property leases - see above for owner occupied property
· Subject property income and expense statements, including year end and year-to-date
· For investment property with single or anchor tenant, include tenant financial statements
· Executive Summary
Commercial Mortgage Loan Purchase Documentation
· Two years and year to date P&Ls
· Current rent roll
· Subject property photos / offering memo / sales package
· Valid purchase contract - including any amendments -
· Selling agent or individual contact information
· Verification of escrows
· If seller is holding a subordinate position, include terms of the note
· Property insurance information
Commercial Mortgage Loan Refinance Documentation
· Two years and year to date P&L
· Current rent roll
· Subject property photos
· Capital improvements summary
· Payoff information, including: mortgagor or service provider contact information, payoff statement, and payment history
· Title policy
· Survey
· Property insurance information
· If there is subordinate financing on the property, you must provide a subordination agreement
If you have any questions, please call ROCFS at 410-415-3040 and one of our commercial mortgage professionals will help
you.