3 Steps to a Quick Commercial Mortgage Closing

By: Zack North

Tips you can use to get the funding you need – fast


Many small-business owners and investors looking for a small-balance commercial mortgage are under significant time restraints – they need to act fast to secure a purchase or take out their short-term loan before the balloon payment comes due. Unfortunately, borrowers who partner with traditional banks can wait as long as 60-90 days while their transaction passes through loan committees and other forms of commercial lending red tape.


On the other hand, a non-bank alternative like Commercial Direct takes advantage of an experienced team and streamlined transaction process to regularly close and fund loans in 25-30 days. With some help from the borrower, the team can close in an even shorter amount of time.


If you do your homework before the transaction begins and maintain a focus on speed throughout the process, you can drastically reduce the length of a commercial mortgage transaction. Incorporate these 3 tips to expedite the transaction process and get the funding you need — fast.


Tip for a Quick Commercial Mortgage Closing


1. Come Prepared

You can make a big impact on transaction length by providing a complete package of required documentation at the start of the process.


Visit the lender’s website and look for a document checklist or resource page that lists the documentation they require for commercial transactions. Many lenders require similar documentation, but you could cause a significant delay by leaving important information out of your initial loan submission.


Commercial Direct requires the following documentation and information at the start of a small-balance commercial transaction:


  • Commercial loan application
  • Current credit report
  • Previous title policy
  • Insurance agent contact information
  • Requested Loan Amount
  • Loan Purpose
  • Occupancy
  • Credit Score Range
  • Time to Close


Our team can help you acquire this information, but you could save serious time in the closing timeline by having it available at loan submission.


2. Focus on Constant Communication

Commercial mortgage transactions are complex – but the process can become far more difficult if communication breaks down between the lender and borrower.


During the transaction, be sure to communicate regularly with your lender – especially if this is your first commercial transaction. Commercial mortgage transactions can be quite different from the typical home refinance – your lender should manage expectations, but you should never be afraid of asking questions and following up regularly to check progress.


While strong communication may not be the only key to an expedited closing, a breakdown or failure in this regard can sink any hope for a quick and positive experience.


3. Know Your Lender

The small-balance commercial mortgage marketplace is full of different types of lenders, from banks and life companies to agency options, marketplace lenders, and other non-bank alternatives. Each of these lender types has its advantages and disadvantages, but if speed is important to you, some of the more traditional options should be removed from consideration.


Take your local community bank – they offer the lowest rates and most attractive terms for borrowers who fit their requirements, but their transaction process can take up to 60-90 days and includes additional steps that can often delay closings. On the other end of the spectrum are hard money lenders, who offer temporary solutions that include high rates and reduced closing times.


Other types of non-bank lenders occupy the space between banks and hard money options. These lenders utilize varying transaction processes, with some being more effective than others. Certain non-bank lenders don’t even start their underwriting process until the 20th day of the loan transaction – effectively eliminating any chance of an expedited closing.


If you’re looking for a reasonable rate and a speedy transaction, a non-bank alternative like Commercial Direct could provide the best solution. Reduced documentation programs and a common-sense underwriting model give our team the agility they need to close many types of loans in 25-30 days. And unlike hard money options, we provide fully amortizing, long-term loans.


Every commercial mortgage transaction is different, and the occasional delay cannot be avoided. But while some lenders are simply unable to work fast due to their structure or underwriting process, a non-bank alternative like Commercial Direct is positioned to close loans quickly and painlessly. Keep this in mind when shopping for a lender partner and you’ll be much more likely to land on a solution that best matches your needs.


No two borrowers have the same specific set of needs. But a speedy and painless transaction seems to be at the top of nearly everyone’s list. If you partner with an experienced lender and work together throughout the process, you can receive the funding you need quickly and get on with your life.

Author: Zack North

Zack North is the Director of Marketing for Commercial Direct.  As a regular contributor to a number of top industry publications, Zack enjoys writing about topics that help investors and business owners approach commercial mortgage financing with confidence.

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