Application ChecklistIn order to get an accurate commercial loan quote from a lender you need to provide them with a complete commercial loan request package. The items listed below are required to complete your online loan package. Use this page to gather the information you will need for your commercial loan application.
Borrower Contact Information
Borrower name (as it appears in the formation documents). What type of entity is the borrower (e.g. corporation, llc, etc.)
Credit, Net Worth and Liquidity
Please enter the following information for all borrowers with greater than 25% interest in the property: approx. net worth (pre-loan), approx. liquidity (pre-loan), borrower's approximate credit rating (FICO score). Has this borrower ever declared bankruptcy? If yes, please explain.
Is a member of the borrowing organization a felon? If yes, please explain. Is there pending litigation, criminal connection, foreclosures, or bankrupticies? If yes, please explain.
Resumes for the Principals
Provide a brief description of the relevant experience of each of the principals. Provide a representative list of previous or current commercial real estate projects.
Financial Operating History (if existing property)
If the request comes after March, provide the operating history for the most recent 13 months.
Provide a current rent roll showing:For each current tenant: suite, sq ft, current monthly rent, lease start, lease end, rent increaseFor vacant space:suite, sq. ft. market rent.
Income/Expense Pro-forma Budget (for projects with less than 2 years of operating history)
Provide pro-forma income statement with projected rents, other income and expense items at stabilization.
Average Daily Rate and % Occupancy
Provide: Average Daily Rate, % Occupancy and Room Count for past three years. Note: ADR * % occupancy * rooms * 365) should equal annual room revenue.
Project Cost (If operating less than 2 full years)
Provide total cost of project. The following is a guideline list of items for the Project Cost:
Acquisition Costs (if a purchase)
Provide the total cost of the acqusition (including: purchase price, commissions and other closing costs.)
Is the project governed by rent control?If so, provide documentation on how the ordinance controls rent increases.
Desired Financing Amount, Type and Terms
What kind of financing do you want: long term fixed rate (> 5 yrs)(these have big prepayment penalties), short term fixed rate, variable rate, fixed to variable, interest only? Required amount. Desired term. Desired amortization? Non-recourse? Is this a cash out loan? If so, please explain use of cash.
If there an existing loan on the property? If so, please provide: lender, loan amount, due date, prepayment Penalty (if any), interest rate, end of term, payment. Has the existing lender been approached about refinancing their note? If so, what was their response? Note: Check to see if there is a demand notice period and conditions (some lenders require a 90 day written notice and will charge a fee if you request the loan closed earlier).
Be aware of contents of police report (class B or C properties)
Be aware of (but do not provide) contents of police report. Know if the police have visited the property and for what incidences.
Provide a brief description of the location (this is often found in an appraisal). Include access information (arterials, mass transit and freeway interchanges). Define the market area (commercial business district (CBD), suburban park, freestanding) and the distance from the CBD center. What kinds of properties are in the surrounding area.
Planning Development/Chamber of Commerce
Gather information on the local economic environment and adjacent property uses, condition, and trend.
Provide a brief description of the building, construction, condition, age, amenities, parking and loading areas.
Photographs, site plans, floor plans, etc.
Provide photos (digital preferred) of property exterior (and interior if available).
Purchase Contract (if a purchase)
Provide a copy of the purchase contract and all amendments. If the contract is not complete provide a copy of the Letter of Intent.
Appraisal and Market Survey
Provide a copy of the most recent appraisal, if available.
Environmental status report
Provide latest environmental status report, if available (especially if there has been an issue or a cleanup).
Investment Sales Package (if a purchase)
Provide the investment sales package as it will contain much of the information required to create the loan request.
Are there asbestos problems
Is there asbestos in: sheet linoleum, fire proofing, insulation, ceilings? If so, please explain? Is there an Operating and Maintenance Plan (O and E) for containing the asbestos? If so, please explain?
Are there seismic issues (CA, WA, OR)?
Is the project older than 1990 or located on or near an earthquake fault (CA, WA, OR)? If so, is the building designed for earthquake safety?
Is the property on a ground lease? If yes, please explain:
Underground Storage Tanks (UST)?
Is there an underground storage tank on the property or has there ever been an underground storage tank removed from the property?
Provide a market report:For loans over $3M, provide Pannell, Kerr, Forster (PKF) or comparable market report.For loans under $3M STAR Report http://www.str-online.com/
If major tenant is a franchise, provide a copy of the franchise agreement.
Are there subsidized units? If yes, how many units? Indicate subsidized units on rent roll.