The following outlines a schedule for the processing of a loan request. This schedule assumes that the Borrower takes as much time as possible to review and respond to the offer, application, commitment, document requests and legal review. This process can be cut in half with prompt reviews, timely responses, wire transfers, responsive attorneys, and completed, satisfactory third party reports.

 
Initial Offer:As a result of Sterling Commercial Capital’s no-cost evaluation of a preliminary loan submission, this email states initial interest and briefly outlines possible loan amount, rates, terms and conditions.

1 to 2 days after receipt of basic loan information

Letter of Intent:If the terms of the initial offer are agreed to by the Borrower, a formal Letter of Intent is generated which incorporates the terms included in the initial offer. The LOI creates a formal relationship between Lender and Borrower, and requires a small retainer, which pays for preliminary due diligence, credit and other services. Generally, the Letter of Intent expires a week after its issue.

1 to 2 days after being advised that the initial offer is acceptable

Underwriting leading to Loan Commitment:After the required documents have been provided, detailed underwriting takes place, after which a contingent commitment to make the loan is issued, which includes definitive loan amount, rates, terms, and various conditions, which, when satisfied, formalizes the loan transaction. Generally, the conditions include a satisfactory appraisal, environmental assessment and engineering report on the property (ordered by the Lender), title report, survey, certification of borrowing entity, among the many conditions. Acceptance of the Loan Commitment requires a good faith deposit of a Commitment fee, to fund the third party reports and subsequently the legal retainer. The Commitment expires within a week after its issue.

Usually issued within a week after completion of underwriting

Third Party Report Period:Appraisals can take up to 4 weeks; Phase 1 environmental assessments and property condition engineering assessments are usually completed within 2 weeks; all are commissioned and carried out during the same period

Commissioned and starts within a week after Commitment is accepted, and all deposits received; usually takes up to 4 weeks.

Final Due Diligence:After receipt of all third party reports, title search, property survey, and various other informational and legal documents, the transaction is reviewed, revised, updated, modified if necessary, and preparations are made for the Loan Closing. A final site visit takes place.

This can take between 1 and 2 weeks, depending on the results listed above.

Loan Documents:Documents are issued by the Lender’s closing attorney once all open items are resolved. The closing attorney needs no more than a week to issue documents, secure local counsel for Lender, negotiate issues and revise documents, assist the Borrower’s attorney with local opinion letters, etc.

The closing date is finalized during the final week.

Loan Closing:Ten business days after all documentation has been received.