{"id":463,"date":"2016-10-10T22:00:25","date_gmt":"2016-10-10T22:00:25","guid":{"rendered":"https:\/\/elkins-lane.com\/wphome\/?p=463"},"modified":"2016-10-10T22:06:08","modified_gmt":"2016-10-10T22:06:08","slug":"a-borrowers-guide-to-managing-the-lending-process","status":"publish","type":"post","link":"https:\/\/elkins-lane.com\/wphome\/a-borrowers-guide-to-managing-the-lending-process\/","title":{"rendered":"A Borrower\u2019s Guide to Managing the Lending Process"},"content":{"rendered":"


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\nMost commercial real estate borrowers will deal with a <\/span>commercial bank<\/span> on transactions up to $10 million, although some small life companies may welcome deals around $10 million, and CMBS lenders on smaller net-leased transactions. Getting a bank loan, of course, is a <\/span>process. <\/span>A CRE purchase often will involve a <\/span>contract contingency for financing. <\/span>So the clock is ticking, but not simply for your real estate agent, the attorney, if involved, but also for you! Suffice it to say, the deal is a long way from being done so a hands-on approach for the borrower is imperative. As a former lender, I am familiar with the internal loan drill and there can be hiccups and derailments along the way. <\/span><\/p>\n

Thirty years ago loan officers had substantial lending authority. When I left banking my authority was $5 million. Most so-called loan officers have been schooled and equipped with only the most rudimentary tools, and frankly not qualified to assess <\/span>risk<\/span>. Today authority usually rests with a \u201ccommittee\u201d which includes an analyst and other bank lending officials. Remarkably, the frontline person you are dealing with is marginalized. Moreover, you may not have a qualified person doing your bidding. C\u2019est la vie!\"\"<\/span><\/p>\n

When I refer to <\/span>managing the lending process<\/span> I am suggesting that you, to the extent possible, engage yourself, as well as your real estate agent (broker), in this intricate process with ardent oversight as to requirements of the lender, compliance with the purchase and sale contract (PSA) b, and in general, closely monitor each step along the way. As a caveat, if this is not done don\u2019t be surprised when you \u201cget a surprise\u201d, either delaying or jeopardizing your deal. <\/span><\/p>\n

The following bullet-points (no order) will go a long way towards shepherding your deal to the finish line:<\/span><\/p>\n