Commercial Loan Process
Understanding each stage helps sponsors set realistic timelines and avoid documentation delays.
1. Inquiry and screening
Share property basics, loan purpose, target leverage, and timing. Complete inquiries allow lending partners to determine preliminary fit quickly.
2. Indicative terms
Partners may issue soft quotes or term sheets outlining rate structure, leverage, reserves, and conditions. Compare carefully—lowest coupon is not always best fit.
3. Due diligence and underwriting
Full underwriting includes third-party reports, legal review, and final credit approval. Respond promptly to conditions to protect your closing date.
4. Closing and funding
At closing, loan documents are executed, title updates, and funds disburse per the settlement statement. Post-closing, meet reporting and covenant requirements.
Educational content only. Not legal, tax, or lending advice. Not a loan offer.
