The Loan Process

Prequalification occurs before the loan process actually begins. At this stage, the S1 Commercial Loan Advisor will interview you and gather all the necessary information needed to determine how we can help. They will inquire about your needs, objectives and expectations. Once the scenario is understood, the Loan Advisor will send you a list of items needed (laundry list) to gain a Pre-Qualification and FREE LOAN QUOTE. We will submit this information package to suitable lenders and gather Letters of Intent (LOI). These Letters of Intent will highlight the terms offered by each specific lender. S1 will discuss each offer with you and help you choose the offer that most best meets your objectives.

The application is the beginning of the loan process and either occurs after you have found a property you want to buy or have determined that you wish to refinance the loan on your commercial property. Once you have accepted a (LOI) the S1 Commercial Mortgage staff will assist you completing all necessary LENDER APPLICATION forms or SBA FORMS. You will be required to supply all of the required documentation for processing. The lender at this point will ask for a “Good Faith Deposit” to start the processing of your loan. This deposit will go towards future 3rd party expenses such as Appraisal Fee or Environmental Report.

The lender’s underwriter will review your loan application package and ask for additional documentation if needed. Once reviewed and if qualified, a credit approval will be issued. At this time the lender will order the Commercial Appraisal. The Lender usually receives bids from 3-4 Appraisal firms and will select the most economical option. An environment report if needed will also be ordered at this time. The processor will also open an escrow account and order a title insurance policy at this time. Once the appraisal comes back and the results are reviewed by the Underwriting Manager an approval can be issued. This is a "Commitment to Lend". This is the FORMAL LOAN APPROVAL stage.

The closing will occur after all conditions are cleared, title is received and LOAN DOCUMENTS are drawn. The borrower will go into the Escrow Office to sign loan documents, or in many cases a licensed Notary Public will come to the borrower’s office or home. Once the signed loan documents are received back by the lender, the funding process can begin.
At funding, the lender "funds" the loan with a cashier's check, draft or wire to the closing agent, who disburses funds, in exchange for the title transfer to the property. This is the point at which you finish the loan process and actually refinance or buy the property, subject to the lender's loan. Closings occur at different places in different states. For instance, some states require that the closing take place at a closing attorney's office, while others use a title or escrow company. You may also be able to close at your home.
The Deed of Trust is recorded that same day, or the next business day. Then the escrow officer will disburse the funds to all parties and the process is complete.