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4. Loan amount and purpose: How much do borrowers need, and what do they need it for? Is this a loan to facilitate the collateral's acquisition? For the project's construction? To cover infrastructure costs?
To assist borrowers, make sure that the loan includes all fees that must be paid to close the loan, such as legal costs, commitment fees, funding fees and broker fees. In addition, if an interest reserve is required, build it in to the actual loan request.
5. Loan type: Will the loan be a first-lien position? Second-lien position? Mezzanine?
Include an overview of all existing liens on the property, particularly if you are requesting a second lien or refinance. In some cases, first-lien holders may have the right to refuse additional liens placed on their collateral, which could be problematic.
6. Timing: How quickly do borrowers need to close? Why? Will their purchase contract expire? Will their existing loan come to term?
Many lenders get calls for deals that need to close immediately. If your borrowers need a loan fast, it's essential to know why so that the lender can assess if the deadline is real or if the borrowers just want it fast with no actual deadline, such as an expiration of a purchase contract, for example.
Answer the questions
One or two sentences may be enough to answer these questions. If additional information is needed, the lender will ask for it.
No matter how pressing the deal is, brokers should avoid overloading the lender with too much information or with irrelevant information. They also must make sure that they are familiar with all the information that they send to the lender. Don't dump a loan file on the lender's lap without digesting it first yourself.
In addition, establish a lender's communication preference as early as possible. In many cases, e-mails can be just as effective --...quot; or even more efficient ...quot;-- than phone calls. This is because phone conversations can easily be forgotten and notes can be lost. E-mails are useful because they can be filed and reviewed at a later time that is convenient to the lender. Make sure to give the lender some time to digest an e-mail before following up. And if the deal must close quickly, say so.
By being knowledgeable, brokers can ensure that lenders understand their deals and respond quickly.
Gardy Bloemers is vice president of Anglo-American Financial LLC,
responsible for loan origination and underwriting. Before joining Anglo in 2005, Bloemers was director of wealth management for Citibank in London. In addition to working for Citibank and the Munich Re in Germany, she established the U.K. office of U.S.-based venture-capital firm Katalyst. Bloemers received a master's degree in business administration from the Rotterdam School of Management and a bachelor's degree from Tufts University. Contact: firstname.lastname@example.org.
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