Cohen Commercial Equity
Loan Process
Loan Process
Commercial Loan Processing Explained
It is important to understand the process behind commercial loan processing to gain an
insight into how a financing institution assesses and decides on whether or not a loan is
granted. While commercial loans provide an attractive source of income in terms of
interest, lenders exercise a lot of care in evaluating borrowers to ensure that funds lent
out are recovered along with the earnings.
Applying for a Loan
Lenders basically pre-qualify potential borrowers by assessing their background and
capacity to pay. The process starts by initial gathering of background and personal
information such as purpose for the loan, your income and existing debts. To formalize
and commence the loan process, you must then fill-up and complete a loan application
form.
Requirements to Expect
Take note of the documentary requirements that will go with your loan application. This
may require some consideration and time to gather. A business loan for example, may
require a business profile that gives a general background of your business. In addition,
a business plan that clearly describes how your business will be run and how it is
projected to perform financially will be required.
Standard requirements for different loan types will include personal financial statements
listing all personal assets, liabilities, as well as your personal tax return for the past three
years. Another fundamental requirement is collateral. Collateral for a loan may include
assets such as real estate and stocks or bonds, hard goods such as equipment, and
other personal assets and guarantees. This is meant to give the lender some guarantee
that you will be committed to seeing your loan repaid. It also offers assurance that should
you fail to meet your loan obligations, they can recover from your assets the money that
they have lent out.
Processing Your Application
A loan officer will review your application and documentary attachments. Your loan officer
will review your credit reports, collateral documentation, as well as your income
information. Some additional documentation may be requested in order to support the
information in your loan application so that all details may be properly assessed and
verified.
Loan Underwriting
Once all documentary attachments are deemed satisfactory, your loan application will
then be submitted to a loan underwriter or a loan committee. They will review, assess,
and eventually decide whether your loan will be approved.
At this time a processor will present you with a letter of intent or term sheet for signing.
This document includes the amount of financing, terms of payment, type of security or
collateral, and other key terms. The decision to approve or reject is usually made within
five days. Expect some requests for you to provide additional documentation during this
underwriting process.
You will be required to sign the letter of intent and along with it, you may be asked to give
a check to serve as a deposit, and to pay for some third-party reports used in the
underwriting process such as appraisals.
Finally Getting Your Loan
Once all the conditions and requirements are satisfied, the loan application package is
resubmitted to the loan committee for final approval. Upon loan approval, you will be
required to sign the final loan documents. If you have a closing agent (an attorney or
escrow company representative for example), they will receive the closing documents
and coordinate the signing of all necessary papers. They will also coordinate the transfer
of funds, record the deed transfer and mortgage, and order title insurance.
With all requirements met and all closing documents in order, your loan can finally be
released! This can be done in several ways - electronic wire transfer to your designated
account, or issuance of a cashier’s check or draft in your name.
Apply For Commercial Loans using our FREE Commercial Loan Application to compare
rates and contact a Cohen Commercial Equity Loan expert. We have over 300
commercial real estate lenders, business and construction lenders as well as private
equity groups waiting to help you. call 1-800-928-6154
It is important to understand the process behind commercial loan processing to gain an
insight into how a financing institution assesses and decides on whether or not a loan is
granted. While commercial loans provide an attractive source of income in terms of
interest, lenders exercise a lot of care in evaluating borrowers to ensure that funds lent
out are recovered along with the earnings.
Applying for a Loan
Lenders basically pre-qualify potential borrowers by assessing their background and
capacity to pay. The process starts by initial gathering of background and personal
information such as purpose for the loan, your income and existing debts. To formalize
and commence the loan process, you must then fill-up and complete a loan application
form.
Requirements to Expect
Take note of the documentary requirements that will go with your loan application. This
may require some consideration and time to gather. A business loan for example, may
require a business profile that gives a general background of your business. In addition,
a business plan that clearly describes how your business will be run and how it is
projected to perform financially will be required.
Standard requirements for different loan types will include personal financial statements
listing all personal assets, liabilities, as well as your personal tax return for the past three
years. Another fundamental requirement is collateral. Collateral for a loan may include
assets such as real estate and stocks or bonds, hard goods such as equipment, and
other personal assets and guarantees. This is meant to give the lender some guarantee
that you will be committed to seeing your loan repaid. It also offers assurance that should
you fail to meet your loan obligations, they can recover from your assets the money that
they have lent out.
Processing Your Application
A loan officer will review your application and documentary attachments. Your loan officer
will review your credit reports, collateral documentation, as well as your income
information. Some additional documentation may be requested in order to support the
information in your loan application so that all details may be properly assessed and
verified.
Loan Underwriting
Once all documentary attachments are deemed satisfactory, your loan application will
then be submitted to a loan underwriter or a loan committee. They will review, assess,
and eventually decide whether your loan will be approved.
At this time a processor will present you with a letter of intent or term sheet for signing.
This document includes the amount of financing, terms of payment, type of security or
collateral, and other key terms. The decision to approve or reject is usually made within
five days. Expect some requests for you to provide additional documentation during this
underwriting process.
You will be required to sign the letter of intent and along with it, you may be asked to give
a check to serve as a deposit, and to pay for some third-party reports used in the
underwriting process such as appraisals.
Finally Getting Your Loan
Once all the conditions and requirements are satisfied, the loan application package is
resubmitted to the loan committee for final approval. Upon loan approval, you will be
required to sign the final loan documents. If you have a closing agent (an attorney or
escrow company representative for example), they will receive the closing documents
and coordinate the signing of all necessary papers. They will also coordinate the transfer
of funds, record the deed transfer and mortgage, and order title insurance.
With all requirements met and all closing documents in order, your loan can finally be
released! This can be done in several ways - electronic wire transfer to your designated
account, or issuance of a cashier’s check or draft in your name.
Apply For Commercial Loans using our FREE Commercial Loan Application to compare
rates and contact a Cohen Commercial Equity Loan expert. We have over 300
commercial real estate lenders, business and construction lenders as well as private
equity groups waiting to help you. call 1-800-928-6154
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