Commercial Loan Processing: Beginning Stages

Commercial loan processing falls into a few stages. They are gathering, prescreening, underwriting (bank, participants, SBA), documentation, and then booking. Here are the expectations you need to have in mind during each stage of the commercial loan process and a timeline.

Gathering: This entails putting together your complete loan package. This stage can take as long as needed for the borrower, you, to gather all the needed info for your banker.

Prescreening: Your banker will review your loan package for accuracy and completeness. He/she will look for red flags or deal killers. They may even conduct some preliminary underwriting. In some cases, your banker will prepare the full underwriting and be your first approval. This stage can take a couple days to a week. A letter of intent is customary to request at this time. Although it isn’t an approval, it will outline fees, rates and terms if your loan were approved.

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