- Make sure your two most previous years - both
personal and business -tax returns are complete and
filed
- If you have filed an extension, have the
extension readily available and make sure the
extension has not expired
- If you have filed for an extension, compete year
end operating statements, and if possible, have them
prepared and audited from you accountant or CPA
- Sign all copies of your tax returns. Most banks
will not accept copies, if you only have copies,
sign the copies and notify your accountant that you
need the originals
- Prepare year-to-date personal financial
statements and business operating statements - no
more than 60 days old
- Locate your 3 most recent months bank statements
- all pages
- If you are refinancing: make sure you have your
payoff statements, survey, title policy, and
appraisal in hand
- If you are purchasing: the sales contract must
be valid. If the contract will expire prior to the
closing of your commercial real estate loan, get an
extension upfront
- For investment properties, make sure all tenant
leases are valid
- ensure lease terms match rent roll -
- Pull your personal credit report. Clear up any
mistakes - if you have any derogatory items, write a
letter of explanation and include with your loan
package - do not try and hide any derogatory items,
underwriters are human, they realize people make
mistakes and look favorably towards a borrower
that owns up to their mistakes
- If the borrowing entity is a corporation, make
sure the corporation is in "active" status, i.e.
active business license, occupational license, etc.
- Put you accountant and lawyer on notice upfront
that you are applying for a commercial loan. Inform
them you will need up-to-date business and financial
documentation. You will be surprised how many times
a borrower will hear, "thanks for telling me, I was
going on vacation for a couple weeks, I will prepare
what you need before I leave"
- Be realistic about the property's value. There
is nothing worse than putting together a great loan
package, having perfect credit, getting approved for
a low interest rate, spending the money on an
appraisal, only to have the value come in far less
than represented - ending up in a decline and a
bunch of wasted time and money
- Do not misrepresent anything on your loan
application, whether minor or major in nature, it
gives the underwriter a bad taste in their mouth if
discovered - often just bad enough that if your loan
is "on the fence" of either being approved or declined, it
will most likely be declined
- Do not, under any circumstances, order your own
appraisal - it is a conflict of interest for a
borrower to order an appraisal on there own behalf,
as it could be seen as an attempt to influence the
property's value
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