COMMERCIAL   LOAN   CHECKLIST

Applying for a mortgage loan sometimes requires a lot of paper work. To simplify the process, we've compiled a list of items you'll need to bring with you to the mortgage application interview. Depending upon your circumstances, you may need to bring additional documents with you, so please don't hesitate to call us if you have any questions about the application process.

1. Current rent roll
2. Last two years property operating statements
3. Photos (exterior and interior)
4. Locational map
5. Site plan (for retail)
6. Tenant profiles describing the larger tenants
7. Borrower profile including real estate experience and financial information (if available)

PRELIMINARY   INFORMATION  CHECKLIST
To commit a deal

 

Brief statement of the prospective Mortgage Loan request including loan amount, loan term and amortization, interest rate preference and use of proceeds.

Property Information

Description of the Property including square footage, year built and renovated, parking provided (including total spaces, covered and handicapped) a description of the HVAC system, type of building construction, type of window systems, type of elevator systems, type of roofing systems. If available please include:

a.) Property description from an old appraisal or engineering review
b.) Floor plans
c.) Site Plan
d.) Description of general capital improvements made to the property (over the past 3 years) and the costs incurred.
e.) Pictures of property from all sides including aerial photographs (if available), pictures of the parking areas and entrances to the property from the highway. Also include pictures of surrounding area.
f.) Neighborhood and regional map locating the mortgage property.

Operating Statements

Property operating statements and year end occupancy for

a.) The past 3 operating years. The operating statements should also include an explanation of the capital costs incurred each year.
b.) Current year to date operating statement including capital expenditures incurred.
c.) Current year budget including the capital expenditures planned.
d.) Copies of real estate tax bills for the past three years.
e.) Tenant delinquency report for the past year.
f.) Monthly occupancy history for the past two years.

All statements should be signed, certified as "true and correct" and dated by the Borrower. The operating statements should itemize base rent, tenant operating reimbursements, percentage rent, antenna rent, and miscellaneous income. The statements should also have sufficient detail to identify the different operating expenses, insurance and taxes and also separately detail the capital improvement costs by tenant improvement, leasing commission and general property improvement costs.

Tenant Information

Current rent roll, signed, dated and certified to be correct. The rent roll should include for each tenant: suite number, square footage, current annual base rental rate, expense reimbursement payments, current lease commencement and expiration date, date of original occupancy, and for retail properties only, percentage rent/breakpoint and current sales per square foot. The rent roll should identify any space leased but not occupied and also list any vacant space. In addition the Borrower is asked to provide:

a.) A copy of all tenant leases and a copy of the standard lease form.
b.) A financial statement on tenants over 5,000 sf (if available).
c.) A list of all tenants over the past 3 years (new or renew) with the terms of their leases itemizing all rent concessions, tenant improvement and leasing commissions for each tenant.
d.) Sales history on all tenants for the past three years.

Market Information

A summary of market conditions, vacancy supply, absorption, planned construction and other factors affecting the future market conditions. Include with this information a summary of competing properties, where located (in relationship to the subject property), occupancy, asking rental rates and an assessment of the competitiveness of the subject.

Demographic and economic data on the area.

Market sales comparables and rent comparables.

Borrower Information

Describe the Borrowing entity and identify each partner and their respective interests. Describe the experience and financial capacity of the Key Principals. Be sure to include:

a.) A description of the property management and leasing company’s experience and their relationship to the Borrower.

b.) A description of the circumstances of any prior loan restructuring, foreclosure, bankruptcy or other similar circumstances affecting the Borrower or its Key Principals.

c.) Current financial statements for the Borrower and the Key Principals, signed, dated and certified to be true and correct.

Deal Specific Information

1. Copy’s of any past Appraisals, Physical Engineering and / or Environmental Reports.

We will attempt to procure the best rates, terms & conditions currently available for your project.THIS IS OUR GOAL on every transaction.

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All of the above will not apply. This is just a check list of some of the items that may apply.