|
It can not be stressed enough about the importance of a
clear and concise submission of a loan. Frequently loans take much longer to underwrite and approve simply
because the underwriter does not understand the dynamics of the transaction. Omission of simple documents such as a
ratified purchase agreement or corporate tax returns and profit loss statements
will grind underwriting to a halt. Documents that are not current such as personal financial statements or
corporate balance sheets will have the same effect.
The first thing that should be prepared is an
Executive Summary of
the transaction. Make a concise one or
two page explanation exactly what you are seeking to do with this loan
so that the underwriter will have minimal questions regarding the purpose of
it. State important issues such as if you are purchasing real estate, business
enterprise only or a building purchase with a ground lease.
State in an
Estimated Use Of Proceeds
form all monies related to the transaction, i.e. purchase amount, working capital, construction amount, equipment costs etc.
You can find this form here:
Use of Proceeds form 
Closing
costs will be different in an SBA loan than in a conventional loan, although
the form is geared more towards SBA financing.
Assemble all necessary documents for the loan, i.e. financials, resumes, contracts. Please refer to our
Document Checklist
as a general guideline.
You can find this form here:
Document Checklist
Many loans take a few weeks to underwrite and approve, but expect this process to take significantly longer in the absence
of necessary documentation. Remember, the borrower has more control
in the speed of the approval than the underwriter. Leave no questions
unanswered.
Keep in mind these are general guidelines
for a submission. Your Lending In USA
representative will provide further details about proper submission.
|
