A borrowerrequirementsto go through amethodso as tomeet the requirementsfor a commercial loan,and also thismethodiscalledpre-qualification. Ineasyphrases,this indicatesthe borrowerhas tofulfillall the commercial lender?s essentialdemandsahead ofhe or she canlastlymeet the requirementsto apply for a loan.What isimportantat this stageis always tobear in mindthe pre-qualificationmethoddoesn?tmake surethat the borrowerwill beapproveda commercial loanand alsothat the loan applicationis eligible. Pre-qualificationis onlyonefactorwithin thebeginningmethodof a loan application.
Just whatEnds upIn the course ofthe Pre-Qualification Stage?
In the course ofthe pre-qualification, thecommercial lenderor perhaps abroker meetswith thepotentialborrowerand they alsotalk aboutthe latter?seconomicdetails. The lendermay possiblyquestionthe would-be borrowerfactsin connection withprofits,employment, thekindof commercial loan requested, thegroundsforgettingthe loan,where thecash-flowis likely tocome fromto repaythe loan,as well aswhattypeof collateralis theBorrowerwilling topromiseto thelender.
So that you canpre-qualify for a commercial loans, the commercial lender has toensurethat thepotentialborrower?searningsas well asresourcesarefirmenoughto affordas well assecure thedebtas soon asthe loanis eligible.
The commercial lendermay possiblyalsoappearto theborrower?scredit file,soit really isimportantthat the borrowerhas acleancredit recordand alsobackground.
Thenlastly,determined bythefactsthe borrowerprovided, the commercial lenderestablisheswhich loan program willwork best withthe borrower. The commercial lendermay also,at this stage,offerthe borroweran estimateonjust how muchthepayment per monthwill bedetermined bythe borrower?sfinancialstatusand theexistinginterest ratesfor thepickedloan program. Borrowersareencouragedthat thismethodis perfect forfree; no commercial lendershouldcollect any pre-qualification feeas well ascharge.
Pre-approval
Commercial loan pre-qualificationsdon?tensurethat a borrowerwill certainlyqualify fora commercial loan. The borrowerhave tosubmit documentsthatsecure thecommercial loan requestwith outany kind ofwarrantyofapprovalfrom the commercial lender.Wheneverapotentialborrowersubmitshis pay stubs, his W-2s, his bank statementsas well as otherdocuments,and thecommercial lender hasnoticedhiscredit historyas well asscore, then the lendercan easilycompletea pre-approvalfor aspecificloanquantity. The lenderis able todo thisdue to the factthe documents submittedby thepotentialborrower havesuppliedenoughfactsfor ainitialapprovaland ultimatelya commitment.
The commercial loan applicationwill thenbe processedas well asunderwritten; a property and/orresourceswill beselectedas well asestimated;after whichthe applicantcan getthe final loanapproval,as well aswith any luck ,shortly afterthat be cleared to close.
Source: http://www.topics-info.com/finance/why-is-pre-qualification-an-important-factor-in-commercial-loans
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