What can the Borrower do to make the commercial loan close faster? You cannot control the timing of the appraisal or the preparation of the loan documents in the commercial lending process. However, you can provide the Bank with:
1. A copy of the prior survey. Assuming this survey still accurately sets forth the current status of the improvements on the land, the closing agent should be able to use the prior survey without the need of the Borrower to incur the expense of a new one.
2. A copy of prior title work (owner’s or lender’s policies). The prior title work, depending upon the date it was issued and type of policy (owner’s or lender’s), could save you considerable money on the title premium. It should also decrease the expense and amount of search time incurred in examining title to the particular parcel.
3. Current lender loan statements setting forth the name, contact information and approximate balance owed for each loan to be paid off at closing.
4. A declaration page for the building and hazard insurance. The Bank will need to confirm that your building is adequately insured and the policy contains the type of insurance required by underwriting guidelines. For example, most Banks now require windstorm coverage, which coverage was not required for many older loans.
5. A copy of any prior environmental site assessment (Phase I or Phase II Reports).
By providing this information to the Bank as soon as you can, the Borrower will not only save time in closing the loan, but likely your money as well.
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