Commercial Application Process
RateShop has streamlined the critical path for borrowers to obtain the type of financing they need.
The following forms outline the basic information we need to qualify a loan, all of which is provided in the commercial mortgage section in Vault. Please call us if you require any assistance or have questions.
Forms:
- Loan Summary
- Application
- Net Worth Statement
- Environmental Questionnaire
Additional Information Required from the Borrower:
• In the case of rental properties the rent roll, which must include: tenant name; net leasable area occupied in square feet or if residential the unit occupied; monthly rent paid; annual rent paid; any recoveries paid; any tenant inducement paid; commencement date; expiry date.
• Three years of financial statements for the property, borrower and any guarantors.
• Commercial Appraisal: This should be recent, and from a recognized appraisal company. Commercial appraisal reports will usually need to be from an appraiser with an AACI designation.
• Environmental Report: A phase I report is ideal. If issues are present, a lender may require subsequent reports.
• Geotechnical Report: May be required where land is involved.
• Quantitative Survey: In the case of a construction loan, the lender will likely require a quantitative survey to determine the cost to complete the project at every draw advance.
• Land Title Document: A current copy of the land title will likely be required by a lender.
• Personal Net Worth Statement: You can use your application, but some lenders may require a statement on their own form.
• Financial Statements of the Borrower or Guarantor Company: The lender will usually request the last two years’ financial statements for companies that are the borrower or the guarantor for the loan.
• Operating Statement: In the case of commercial or mixed-use properties, the lender may request the operating statement of the building to determine current costs.
• Commercial or Personal Credit Bureau: The lender may require corporate credit bureaus, or personal credit bureaus from the borrower.
• Tax Statement: This is from the municipality in which the property is located. It will contain critical information about the property.
• Real Property Report: This may be required, as it can identify issues with adjacent properties.
• List of Professionals Involved in the Transaction: This list will include realtors, appraisers, lawyers, etc.
• Lease(s) (if applicable): In the case of mortgage profiles that involve properties with cash flow, the lender will need to review a lease to identify the strength of the tenant and the amount of time remaining on the lease.
• Purchase and Sale Contract (if applicable): This will be required in the case of a purchase, or if the exit strategy is from a firm sale.
• Building Report (if applicable): The lender may require a building report to assess the effective age of the building.
• Existing Mortgage Statement: In the case of a refinance, the lender will need to view the state of the existing financing.