How long will the process take?
Assuming that the Borrower has made a decision to proceed and has delivered all the key documents needed to underwrite the loan to the broker, 30-45 days would be the typical range.
What differentiates a commercial mortgage from a residential mortgage?
A residential mortgage is limited to as the name implies, “residential properties” no greater than four units per building, whereas, a commercial mortgage is utilized to secure financing for a wide-array of property types. In addition, the residential loan process is essentially standardized through the use of guidelines established by Freddie Mac and Fannie Mae, while the commercial loan process can vary greatly from lender-to-lender.
What type of information will I need to provide NECL with to ensure that the loan process runs smoothly and efficiently?
Although each lender requires different types of specific information all lenders will want to see:
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NECL FORMS
- Tax returns of Personal and Business(if any)
for full doc
- Operating statements detailing any improvements or expenses incurred by the property
- Current rent roll including leases for any apartment building
- Personal financial statements for all partners
- 1003 form
- Credit Report
In what states does NECL do business?
NECL has the ability to finance deals in all 50 states.
How much equity does one need in order to be approved for a commercial mortgage?
Every commercial lender requires that the applicant have minimum 20% equity in the property. This translates into a Loan-to-Value (LTV) that is no higher than 85%. There are exceptions to this rule when two separate properties can be cross-collateralized.
What type of properties do you loan on?
Property types including: Retail, Mixed-use, Multi-family 5+ units, Hotels & Motels, Retail, Auto Repair / Auto Body, Bars/Restaurants, Dry Cleaners, Strip Malls, Office Buildings, student housing, warehouse/storage, mobile home parks, light industrial&many more.
How do Brokers get paid?
Brokers can get paid in two ways. First we will pay brokers yield spread on a case by case basis per separate negotiated agreement. Second, brokers can charge the borrower up front points and collect that amount from the funds collected at closing.
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