Securing your financing for a commercial construction project may be one of the most complex parts of the entire project. You need to qualify and provide a lot of documentation, and you need to have a good idea of the amount you need to complete the project. Here are some steps you will have to take to get a loan for your commercial construction project:
Choose Your Lender
The first part of getting a loan is choosing your lender. You should use a local lender rather than one online or in another state, as you can more easily communicate in person if you have any questions throughout the process. When you want to go through the commercial construction loan process, you have a better chance of getting financed because they know the market in your area.
Plan for a Lender Review
Before you secure the loan, your construction equipment financing group may request a lender review. You will not need to have your financial documentation for this process. This period of time is meant to examine the basic details of what you want to construct. The lender will listen as you provide information about your overall vision and your timeline. You should have a calculation of how much the project will cost approximately and any projections you have. After this process, and if the lender is satisfied with your review, they will start the underwriting process.
Get an Attorney
You should also retain an attorney at this time. While not required, an attorney who specializes in commercial lending legal matters can help you throughout the entire process and ensure you have satisfied all the requirements for the loan. Your attorney can also assist with closing and listen in to ensure you get the best outcome.
Getting the Loan
After you receive a commitment letter for your loan, you will need to go through the closing process. You should receive a list of the documentation you need for the closing. This will include a lien search on you and anyone else who is a borrower, the title search of your property, and proof of your insurance. Once the closing is finalized, you will then receive the funds and begin your construction project.
Going through the commercial lending process can be complex. You need to work with a reputable lender. Be sure and research many lenders before you start the process to ensure you receive the best terms.Share
17 October 2019
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