Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

How an Underwriter Can Make Your Commercial Real Estate Loan Application Experience More Pleasant for You?

By Edmund Brunetti Subscribe to RSS | April 9th 2012 | Views:
loading
 
  



In today’s dynamic environment it is considerably more difficult to finance a commercial real estate transaction. Securing commercial real estate loans from lending institutions can be a challenging task since most lending institutions are wary of the fluctuating market conditions today. Other factors such as loan rates, borrower’s management experience, credit worthiness of the sponsor, etc. are important factors to consider when it comes to securing commercial real estate loans. Even if you are successful in finding a lender, the application process and the stringent terms and conditions imposed by the lender can be a frustrating experience for most people. These unpleasant experiences can be improved by working with a credit underwriter who can guide you through the process.

A credit underwriting firm specialized in commercial real estate lending practice would know the underwriting guidelines of the financial institutions who the firm maintains close relationships with. Unlike a brokerage firm, a credit underwriting firm generally works with selective group of investors and it acts like a correspondent to the investors. When a file is received by the underwriting firm, it will be screened by its underwriter to make sure the file meets the lending guidelines and it has a potential to be qualified under the guidelines. Next, the underwriter will proceed to structure the file based on the investors’ guidelines. The required financial analysis and stressed tests will be performed by the underwriter to determine the feasibility of the file and if the file passed the tests, then a preliminary approval can be generated. While the underwriter is working on the file, simultaneously, the file is also shared with the investor so the approval process can be shorten. Once the file receives its preliminary approval, the underwriter will then generate a comprehensive documentation / due diligence checklist to the borrower. This checklist will be used as a guideline for the borrower to complete the due diligence process. There is no guess work involved and the borrower would have the comfort to know exactly where he stands in the process.

In many cases, the borrower maybe in a situation when a quick closing is required or the property involved may required a short period of stabilization, an experienced underwriter should recognize these scenarios and place the loan application under a bridge loan program whether it is an institutional bridge loan or a private equity type bridge loan. Bridge lenders often prefer to limit their lending practice to the four basic property types:

* Multifamily

* Office

* Retail

* Industrial

Some bridge lenders focus on hospitality properties and will have funds specifically allocated for this type of properties. Although the general guidelines may look the same, each lender has its own unique requirements in its underwriting and this knowledge is shared with the underwriting firms who the lenders maintain a close working relationship with.

A good underwriter should be able to provide its borrower a comprehensive solution to the project and not just a short term cure of the issues involved. For instance, when underwriting for a bridge loan scenario, the underwriter should also provide an analysis on the exit strategy. An exit for a bridge loan can either be a refinance to a permanent loan program or a sale. This analysis will require knowledge on both the bridge loan programs and the permanent loan programs.

The frustration a borrower may experience in the commercial real estate loan application process is not knowing the process or what to expect after the loan application is filed. Hiring an underwriting firm to work with you on the loan application will eliminate the “unknown” factors in the process; it will enhance the application experience by “knowing” exactly where you are in the process.

Edmund Brunetti - About Author:
For gathering more info about commercial real estate loans or about commercial real estate lending, and also about bridge loans, please check out these links.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/finance-articles/how-an-underwriter-can-make-your-commercial-real-estate-loan-application-experience-more-pleasant-for-you.htm

Related Finance Articles Subscribe to RSS

Bad credit loans no fees: Shake Hands with Cash Crunches with Smile
Published by Cameron White on December 13th 2011 | Finance
Bad credit loans no fees are always ready to shake hands with poor creditors to let them feel comfor...
 
Instant loans for Unemployed: a rapid approach in modernized world!
Published by Rider Abraham on June 7th 2012 | Finance
Unemployment is becoming one of the major issues in the whole economy but jobless should not get dis...
 
Mini text loans: Amount is small but enough for urgent needs.
Published by Moon Thomas on November 27th 2011 | Finance
These finances are meant for the people who are looking for short term loans. Through these advances...
 
Avoid defaulted private student loans for their negative consequences
Published by Michelsmith on December 8th 2011 | Finance
Defaulted student loans, be it federal student loans or private student loans, might lead to serious...
 
Secured personal loans: an approved aid against your own collateral!
Published by Keith Kelly on May 31st 2012 | Finance
Secured personal loans as the name clarifies are hassle free option of attaining fiscal aid by pledg...
 
Payday loans Australia: Faxless Short Cash for People of Australia
Published by Keith Kelly on March 22nd 2012 | Finance
The people of Australia who are to live on monthly wages or salary look for payday loans Australia. ...
 
How to get over with defaulted study loans?
Published by Peter Paul on December 8th 2011 | Finance
Defaulted student loans can be recovered but it is not advised to reach a defaulted loan. Rather an ...
 
Payday loans Canada: Cash at Finger Tips
Published by Daryl Hurtig on March 20th 2012 | Finance
Payday loans Canada are as good as short terms loans and are popular among the salaried people of Ca...
 
Online faxless loans Canada: No Faxing Funding for Canadian People
Published by Simon Ray on July 11th 2012 | Finance
Online faxless loans Canada have been introduced for the benefit of the salaried people of Canada. T...
 
Unsecured loans – Obligation free loans for nearly all fiscal needs
Published by Michael Haworth on March 16th 2012 | Finance
Unsecured loans are obligation free loans. These are suitable for almost all financial needs. Since ...
 
No credit search loans - Get Funds Without Verification Process 
Published by Alice Johnsonn on January 12th 2012 | Finance
No credit search loans don’t account your credit history and helps you to avail cash support in qu...
 
No faxing payday loans UK: Get the cash before payday
Published by Calvien Peter on December 8th 2011 | Finance
These finances are one of the best and ideal ways to get the cash. Applicant can easily get the mone...
 
Instant cash loans: a relief to immediate needs!
Published by Jimmy Gill on June 4th 2012 | Finance
Anyone can fall in financial crisis but it does not mean that there is no way out to this. Experts h...
 
Getting the most out of your unsecured business loans
Published by Mathias Scott on June 14th 2012 | Finance
An unsecured loan is one that you get without having to put forth a collateral. In this form of lend...
 
Student loans in default, a rising concern for the financial market
Published by Michelsmith on January 2nd 2012 | Finance
Student loans in default state is growing day by day. The governments are really looking into these ...
 
Payday loans – five points to ponder
Published by Jack on April 7th 2012 | Finance
For most people, getting payday loans is a simple task. Now it has become even simpler because one c...
 
Bed mattress your Derivatives Market Unlike More Financial loans?
Published by Robin Roach on July 5th 2012 | Finance
Concluding knowning that investment decision means to easy use in an individual's collection could a...
 
Consolidating home loans and other debts
Published by Brianna on April 23rd 2012 | Finance
If you are in debt and trying to get yourself out of it, then there are various options available to...
 
Cash loans bad credit- Fast Cash Notwithstanding Bad Credit
Published by Rider Abraham on March 21st 2012 | Finance
Cash Loans Bad Credit is an instant solution and a great short term financial support for persons wi...
 
Cash loans Canada: Finance at Finger Tips
Published by Amarjeet Singh on March 19th 2012 | Finance
Cash loans Canada help the salaried people of Canada to find perfect kind of solution in financial c...