- Are you a direct lender?
- Can you use a credit report I've run myself?
- Does CLC charge deposits?
- How has the economic downturn affected Commercial Real Estate ?
- How long will it take for my loan to close?
- What criteria will I need to meet in order to be eligible for a loan?
- What happens if my credit score is below the minimum requirement?
- What will you need from me to begin the loan process?
- Why It Is Necessary To Obtain Your FICO Score?
- Why should I choose your CLC to finance my commercial loan?
Commercial Lending Capital, Inc is a correspondent and partner with several of the nation's leading financial institutions. We have spent years pre-negotiating discounted rates/terms, implementing internal support staffs and obtaining programs that small Brokerage firms would never have access to. The majority of the time Commercial Lending Capital will close loans in our name, and have first payment default liability. However, in a situation where circumstances drastically change, (severe drop in credit, insufficient cash-flow, undisclosed deferred maintenance, etc.) we do have access to additional programs that will still allow us alternative options to keep the loan in-house! The great news to you is that we don't lose the loan, and all of your hard work isn't wasted! This is what separates CLC from the majority of other lenders you encounter.
Unfortunately, we cannot use a credit report that you have obtained yourself.
Why? Because we cannot guarantee the information is credible. Often times information you obtain via the internet, or other means, does not report precise and up-to-date FICO information. By utilizing our system, we can guarantee that the information we obtain is current and reliable.
Why? Because we cannot guarantee the information is credible. Often times information you obtain via the internet, or other means, does not report precise and up-to-date FICO information. By utilizing our system, we can guarantee that the information we obtain is current and reliable.
CLC does not charge deposits, however we do charge flat rate fees. The fees are based on the amount of work already performed at the time a loan commitment is executed. CLC will also be liable for paying the cost of the appraisal and any other required 3rd party reports that are necessary in advance.
Impact of Capital Markets on Commercial Real Estate Values
The economic downturn is reducing demand for commercial real estate, and vacancies are expected to rise moderately, though they will remain in a healthy range. Nonetheless, investors are facing higher borrowing costs and have access to less leverage, which negatively impacts values. Leverage is one of the prime motivators for investors to purchase real estate for a few reasons. To start, it allows investors to control a larger property than they otherwise could if they had to pay all cash, thus increasing their return on equity. Leverage also allows investors to spread their equity across multiple properties, minimizing their risk through diversification.
When there is uncertainty in the markets, lenders hedge their risk by building in greater cushion in their underwriting, including increasing 1.) Debt Service Coverage Ratio (DSCR) requirements, (2) wider loan spreads, (3) and decreasing Loan-to-Values (LTVs).
The economic downturn is reducing demand for commercial real estate, and vacancies are expected to rise moderately, though they will remain in a healthy range. Nonetheless, investors are facing higher borrowing costs and have access to less leverage, which negatively impacts values. Leverage is one of the prime motivators for investors to purchase real estate for a few reasons. To start, it allows investors to control a larger property than they otherwise could if they had to pay all cash, thus increasing their return on equity. Leverage also allows investors to spread their equity across multiple properties, minimizing their risk through diversification.
When there is uncertainty in the markets, lenders hedge their risk by building in greater cushion in their underwriting, including increasing 1.) Debt Service Coverage Ratio (DSCR) requirements, (2) wider loan spreads, (3) and decreasing Loan-to-Values (LTVs).
- Rising DSCR - Prior to the capital markets shakeup, DSCR was at an average of 1.1:1, which means lenders required $1.10 in NOI for each $1 in debt service. Lenders today are mitigating risk by requiring NOIs are 1.25:1 greater than debt service.
- Wider Loan Spreads - Competition among lenders forced spreads to historically low levels in 2006 and early 2007, with the average falling to 100 to 110 basis points over the 10-year Treasury, which at the time was around 4.65 percent. The 10-year Treasury has retreated to the mid-3 percent range, but lenders are pricing in more risk, pushing loan spreads to an average of 275 basis points of the 10-year Treasury.
- Lower LTVs - Approximately one year ago, LTVs were 75 to 80 percent. The rapid price appreciation cycle has ended, and tighter credit markets are encouraging lenders to become more cautions. As a result, LTVs have decreased to the 65 to 70 percent range.
Loans typically close in 30-60 days. However, several factors can affect the amount of time it takes for your loan to close. The ease of which we can order an appraisal on your building will play a major role. Typically, buildings in more suburban areas will be much easier to obtain an appraisal for than on than buildings in more rural areas.
Making sure to return the documentation we require from you in a timely fashion will also assist in speeding up the loan process.
Making sure to return the documentation we require from you in a timely fashion will also assist in speeding up the loan process.
Credit score:
Your credit score will play an important role in determining the rates and terms that are available to you. Our minimum mid
credit score requirement is a 575+.
Building type:
We are capable of financing an array of different building types. Typically, a lender looks for a structure that could have several uses. Please see our list of eligible properties to determine if your building meets our criteria.
Down payment:
If you are making a new purchase, it will be necessary to provide us with proof of funds for the down payment. We will also require a copy of your most recent bank statement, as well as a copy of your purchase agreement.
Appraisal:
The largest factor is determining if the property can support the loan amount you are requesting. This is determined by ordering appraisal, which will assess the actual current value of the property.
Your credit score will play an important role in determining the rates and terms that are available to you. Our minimum mid
credit score requirement is a 575+.
Building type:
We are capable of financing an array of different building types. Typically, a lender looks for a structure that could have several uses. Please see our list of eligible properties to determine if your building meets our criteria.
Down payment:
If you are making a new purchase, it will be necessary to provide us with proof of funds for the down payment. We will also require a copy of your most recent bank statement, as well as a copy of your purchase agreement.
Appraisal:
The largest factor is determining if the property can support the loan amount you are requesting. This is determined by ordering appraisal, which will assess the actual current value of the property.
Naturally, we will not be capable of providing you with an approval. However, we will be happy to provide you with a pamphlet outlining the steps to take to help improve your credit score.
1. 10 minutes to complete a 1003 loan application with one of our knowledgeable loan officers.
2. A completed Credit Report Authorization form, allowing us to determine your credit score.
That's it! Once we have the above information, we are capable of putting a Conditional Loan Approval in your hands in less than 24 hours. This is our guarantee to our clients. No long waiting periods, as our state of the art software determines your fundability in minutes!
2. A completed Credit Report Authorization form, allowing us to determine your credit score.
That's it! Once we have the above information, we are capable of putting a Conditional Loan Approval in your hands in less than 24 hours. This is our guarantee to our clients. No long waiting periods, as our state of the art software determines your fundability in minutes!
Almost all mortgage lenders utilize credit scoring in the approval process. Your score is a reflection of how you have paid your past credit obligations. It is also a predictor of the likelihood that you will default, (be 90 days or more late) on a credit obligation in the next 24 months. It will have a major impact on the interest rate, amortization length, and loan to value available to you.
Your credit score is created by the Fair Isaac Corporation, which is why your credit score is sometimes referred to as a FICO score. The three major credit data repositories are TransUnion, Equifax, and Experian. It is required that we have scores from all three of these credit bureaus in order to present you with a Conditional Loan Approval.
Obtaining your credit score is essential for providing you with the most accurate rates and terms that are available to you. Commercial Lending Capital, Inc requires that all potential borrowers give us authorization to have your credit report run by our organization. A suitable credit score is required in order to be eligible for financing through the Commercial Lending Capital, Inc
Your credit score is created by the Fair Isaac Corporation, which is why your credit score is sometimes referred to as a FICO score. The three major credit data repositories are TransUnion, Equifax, and Experian. It is required that we have scores from all three of these credit bureaus in order to present you with a Conditional Loan Approval.
Obtaining your credit score is essential for providing you with the most accurate rates and terms that are available to you. Commercial Lending Capital, Inc requires that all potential borrowers give us authorization to have your credit report run by our organization. A suitable credit score is required in order to be eligible for financing through the Commercial Lending Capital, Inc
Because commercial loans are our ONLY business! We do all of our underwriting and processing in house, using state of the art software that assists in speeding up the loan process. We can also guarantee a loan approval in less than 24 hours, which means no long waiting period to find out if you're eligible. We offer competitive rates and terms, and will continue to work with you until we find the best loan options available to you. We will manage your loan from start to finish, which means you will never have to worry about dealing with anyone but US.
