Mortgage Banking

Making sense of commercial real estate finance.

Information Needed for Underwriting

Posted by Jordan Crouch on October 18, 2007

The is a list of information needed for underwriting a commercial real estate loan. The more information I have up front, the easier it is to underwrite the deal, get a lender to quote it, and get that quote to the borrower.

  1. Property P&L – last 3 years & year-to-date
  2. Detailed rent toll with lease start/stop dates
  3. Borrower Profile
  4. Copy of existing appraisal
  5. If #4 not available, provide land size, parking count, age, address, building description & zoning
  6. Existing loan balance & lender
  7. Copy of purchase agreement if applicable
  8. Desired loan amount, term & amortization
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2 Responses to “Information Needed for Underwriting”

  1. Rob said

    That is a good list. It is important for developers and investors to have a good understanding of the underwriting process a lender goes through. I hacked together a post about the process we go through as a construction and mini-perm lender, which can be found here:

    http://ideatrending.com/?p=4

    I would also be interested in hearing how your process differs as a mortgage broker, and what your lenders expect to get from you.

  2. Rob, I checked out your post. From my perspective, lenders focus much more on the borrower’s financial strength when the real estate cannot support the loan repayment, for example, on a construction loan or a partially empty building (value added play). If the property can support the debt service, a lender will focus on the property first and then the borrower. We do more of the latter type of financing. If I haven’t answered your question enough, please email me.

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