Lenders care mainly about the following during the loan application process; the historical and current performance of the subject property; your personal financial strength as a borrower; and your experience as an investor or operator of income-producing assets (whether as a business owner, landlord, or property manager).
After communicating your loan needs to the experts at Realty Yield, we will request that you provide some preliminary information that will allow us to begin "shopping" for the best loan for your particular needs. These items will include:
+ Description and details about your (subject) property
+ Current loan/mortgage information
+ Resume/Bio for each borrower
+ Personal Financial Statement (PFS) for each borrower
+ Schedule of Real Estate Owned (SREO) for each borrower
+ Current rent-roll for your (subject) property
+ Prior two-2 years and year-to-date Operating Statements
From here, you will receive one or more loan quote offers from the lenders in our network. After selecting from those preliminary offers, the process of making formal loan application will begin. The chosen lender will pre-underwrite your loan to evaluate the risks related to your credit, capacity, and the condition of your collateral. Once the preliminary underwriting is complete, the lender will provide you with a Term Sheet – also known as a Letter-of-Intent (LOI), outlining the full expectations for the loan. From there, the lender will order an appraisal, any other required third-party reports and move your file through the formal underwriting process. The Credit Department will then generate a FINAL Commitment Letter and close the transaction through escrow.
In the early phase of the application process, you should expect prospective lenders to ask for resumes or bios demonstrating your track record with past commercial mortgages, investment properties, or small businesses. As you move through the underwriting process, your chosen lender will need more formal documentation (see Documentation section below) to fully underwrite your loan. The lender will conduct a credit check, and possibly (depending on the lender) require a background check. The lender may also want to review your business plan, references, financial statements, or current proof of your net worth.
Every lender operates on its own schedule and some are faster than others. Having the experts at Realty Yield connect you to the right lenders will streamline the process to help move things as quickly as possible. The timeline varies depending on your mortgage needs: For short-term bridge or private financing, we can help borrowers see fast closings, usually within 30 days. For first-lien mortgages up to $10M, timelines between 45 and 75 days should be expected.
The documentation you will need to provide for the underwriting of your apartment/commercial mortgage varies depending on the type of loan and the amount of capital you want to borrow. In general, the more documentation provided, the better the rate/terms.