Commercial Loan Processing: Underwriting

Underwriting: This is when the clock really starts. You want to get your loan to this stage as quickly as possible. Underwriting can take a couple weeks to 30 days depending on your loan’s complexity. Often times (almost every time), underwriters will request more information or updates to the loan file. It is crucial that you are quick to get the information requested. The lender will put your file on hold until you get the package updated, which will push the clock back.

Due diligence reports like appraisals and feasibility studies will be ordered and reviewed during this stage. You will be expected to pay for these reports. Sometimes lenders will issue a conditional commitment letter before you order these reports.

Underwriting is when the final decision to approve or deny your request will be made. A commitment letter is issued during underwriting if the lender approves your request. In some cases multiple approvals may be needed for a final commitment. This is normal when the SBA or other participating lenders are involved.

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