Commercial Loan Process
From identifying the right brokerage to post-closing servicing — what to expect at each stage of a commercial financing transaction.
Identify a Mortgage Brokerage
Locking in an experienced, qualified commercial mortgage brokerage is your first step to a successful loan process. Commercial real estate financing remains very much a relationship-driven business — lender programs and appetites are constantly changing, and tracking those changes is more than a full-time job. Many lenders and programs are also unavailable to the general public, as they don't want to serve as a call center for inquiries and only entertain quality loan packages from trusted sources. Most of the time, there is no additional cost to the investor for brokerage services, since net fees are paid by the lender.
Scenario Assessment
There are a multitude of commercial lenders in the marketplace at any given time, each with its own specialization and flexibility — there truly is a best fit for your request. It's crucial to have a discovery process to determine what you desire and what's important to you, and to anticipate the challenges we might encounter, so you have a clean process. Skipping this step can cost time, money, and legal liability, especially if you're already in escrow.
Review and Analysis
Our team does an extensive review of both borrower and property documentation, reviewing your file from every angle a commercial lender eventually will. We make recommendations to cure potential issues that would affect your application, and run different financing analyses so you can see how leverage points or changes in rate and terms might impact your investment ROI.
Loan Option Selection
CCG compiles and summarizes offers onto a client-friendly spreadsheet so we can easily compare loan terms, review together to discuss strengths and weaknesses, and make a final selection on the program that's the best fit for your request.
Lender Due Diligence
Once you've selected a lender, we move into their due diligence and approval process. An upfront deposit is usually required for good faith and to cover property reports. This is the lengthiest portion of the process — anywhere from 3 days for a bridge or private loan to over 60 days for permanent institutional loans.
Lender Approval & Documentation
After due diligence, the lender's management or committee approves the final loan terms. A final approval term sheet is issued and compared against the original Letter of Interest. CCG identifies and addresses potential issues before lender selection, so your initial terms are honored as expected in the vast majority of cases.
Condition Satisfaction
Loan approvals always come with conditions to funding — verifying property insurance, title insurance, executed loan documents, and coordination with escrow. CCG works to minimize loan conditions and request certain items be handled post-closing if they would otherwise hold up a deal.
Post-Closing & Servicing
Upon closing, you'll receive copies of all important documents, instructions on your first payment, loan servicing contact information, and a calendar of important dates. Our services to clients are life-long, not strictly transactional — the CCG team remains available for questions or advice throughout the life of your loan.