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Benefits of Working with a Commercial Loan Broker

Tags: commercial loans, easy commercial loans, help finding a commercial loan
Thursday, Feb 01, 2018
by Barb

When it comes to financing a commercial property, a commercial loan broker that has years of expertise can save a great amount of time and money for its clients.  The Madison Group (TMG) provides a commitment to provide superior capital market expertise and highly competitive loan products.  This enhances the firm’s ability to serve their clients in their endeavor to create and preserve wealth.   TMG and its network of lenders ensure that the clients have access to the best loan programs in the country. Whether it's an initial purchase or a refinance their dedicated staff works with owners of commercial real estate to ensure the loan meets the client’s financial goals.  

The process of completing a commercial loan can be difficult.  The TMG staff will assist the client each step of the way to complete the transaction.  Outlined below is a good idea of how the loan process works and what you can expect along the way while working with a commercial loan broker like The Madison Group.

Step One: Pre-Approval (Qualify)
1.  An introduction call with the client to clarify their needs and goals for the transaction.  After this initial contact, a brief list of property and borrower documents will be requested. Receipt of these items is essential in order to get an accurate quote.
2.  After we receive your documents, the loan originator will do a preliminary analysis on your file to determine your debt service coverage, property income and expenses, and other factors are in order.  Engaging broker services usually requires signing a consultant agreement.
3.  Your loan is packaged and sent to our best lenders to obtain a loan quote or offer.
4.  After pre-approval with a lender, you can expect a quote for rates, terms, costs, valuation estimate, expected time-frames, and instructions on how to proceed to step two.

Step Two: Application and Engagement
1.   The next step in the process, you will be asked to sign the Letter of Interest or Application with a lender whom you have chosen and accept the loan terms.  Additional documents and a more complete loan package may be requested by the lender and their underwriters.
2.  Upon underwriter’s satisfactory review of the loan file, you will then need to make a deposit so that the Lender along with the processing staff can order the 3rd party reports and engage an appraiser and inspector.

Step Three: Processing (Verify)
After 3rd party reports have been ordered, the Processing Staff will request some additional items of verification. This list will usually include personal tax returns, entity documentation, funds verification, etc. but may vary depending on your specific program.  It may take several weeks for all the 3rd party reports to be completed.

Step Four: Closing (Finalize)
Once 3rd party reports are completed and the verification process satisfied, a final loan approval will be issued. Upon approval, and any prior-to-closing conditions are satisfied, the lender will draw loan documents. The processing staff ensures a coordinated and timely closing by working closely with your title and escrow agent. 

As you can see, working with an experienced team like The Madison Group, will provide expertise and support to you during this sometimes demanding process.  Contact The Madison Group to get started with our team today.