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Charlie2818, Other/Just Looking in Detroit, MI

How long does it take a Lender to make a decision on a commercial building?

Asked by Charlie2818, Detroit, MI Sat Dec 18, 2010

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Every bank moves at its own pace so it would likely take between 30-60 days from initial loan application. They will do a much more detailed underwriting than a traditional residential mortgage.

They will look at the rent roll, market study, valuation, building condition, appraisal, environmental assessment (if applicable), and most importantly to the Borrower's creditworthiness (ie. how financially strong & liquid are the loan guarantors). I'm guessing that your buying the property through a single asset LLC or LP, so most time will be spent on the Guarantors financial ability and your track record with other real estate assets to make sure that you will be able to repay the loan.
0 votes Thank Flag Link Sun Dec 19, 2010
Might be a couple of weeks to a few months. It depends on so many things....your credit strength, asset, value, market reports, history of performance, assets on hand at bank, type of business, experience in the business, their motivation and history with you, etc.

Any particular building that interests you?

Check out the link below for more possibilities.…
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0 votes Thank Flag Link Sun Dec 19, 2010
Bruce Lynn, Real Estate Pro in Coppell, TX
With any loan approval it takes time. It also depends on amount of the commercial building usage and involves your professional background list is endless.

Commercial lending is much more difficult to obtain a loan than residential

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes Thank Flag Link Sun Dec 19, 2010
There are so many things that go into getting an approval from a lender. The main thing is to be prepared prior to making an offer on a property. Contact your lender to make sure that with your credit score you will even be able to make an offer that will be considered. It's always good to do this before finding a property. Here is our lender at Home Team Mortgage Company, Denise Massey 817-654-8501 or I'm sure she will be able to answer any questions you might have and explain the entire process to you.
0 votes Thank Flag Link Sun Dec 19, 2010
There are many variables to your question. The greatest amount of time is getting them what they need. Once you get the loan officer the purchase agreement and all of your financials, they can then give you a conditional committment basd on the appraisal coming in at a certain price. They can also wait to make a decision for the appraisal to be finished and if they need any site assessemnts or other reports. So as far as time, it could be 24-48 hours once they receive everything but total time from application to decision could be 30 days. It should not be more than 30 days unless someone is dragging their feet in getting things into the bank.
0 votes Thank Flag Link Sun Dec 19, 2010
Does it depend on the amount!?
0 votes Thank Flag Link Sat Dec 18, 2010
Hi Charlie, It can take a few days to about 45days as been our experience. If you have all paperwork in correclty and your down to final approval that is.

All the Best
Dave & Lisa
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0 votes Thank Flag Link Sat Dec 18, 2010
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