Paperwork Needed to Buy Commercial Real Estate in Minot ND

What paperwork is needed for a commercial mortgage in Minot? The usual documents include: profit and loss statements, tax returns, rent roll, property photos, personal financial statement and capital improvements summaries. Continue reading to learn more about the paperwork you need to obtain a commercial loan.

The best way to ensure a quick, easy, and accurate closing, is through preparation. In commercial lending, preparation means knowing what a commercial real estate loan underwriter is looking for, and providing it, before they even ask for it.

 The following is a list of items that you will need to get ready and make available to the commercial lender as soon as you can when applying:

 Commercial Mortgage Loans - Documentation

• Personal and Business Tax returns of the most recent three years
• Extensions for any filings  if applicable
• Personal Business Bank Statements of the most recent three months
• Personal financial statements  updated within last 60 days
• Year-to-date business operating statements if applicable
• Year end business operating statements if business tax returns are on extension
• Personal resume which is required for investment properties if self managed
• Property management resume, or letter of credentials, if property is professionally managed
• Letter of explanation for any derogatory credit, including: slow pays, charge-offs, liens, judgments, child support, etc.
• Schedule of real estate holdings - include purchase date, purchase price, and current mortgage amount
• Subject property rent roll - if not 100% owner occupied - if property is owner occupied and held in a different entity, i.e. LLC, and leased back to the business, then rent roll and copy of the lease must be provided
• Subject property leases
• Subject property income and expense statements, including year end and year-to-date
• For investment property with single or anchor tenant, include tenant financial statements

Commercial Mortgage Loan Purchase Documentation

• Two years and year to date P&Ls
• Current rent roll
• Subject property photos / offering memo / sales package
• Valid purchase contract including any amendments
• Selling agent or individual contact information
• Verification of escrows
• If seller is holding a subordinate position, include terms of the note
• Property insurance information
• Commercial Mortgage Loan Refinance Documentation
• Capital improvements summary
• Payoff information, including: mortgagor or service provider contact information, payoff statement, and payment history
• Title policy
• Survey
• Property insurance information
• If there is subordinate financing on the property, you must provide a subordination agreement