Blog

Helping CRE Owners Get the Best Outcome From Underwriting

undwerwriting photo

PLUM Lending is a full-service commercial real estate capital provider to owners and investors. We offer a full array of loan options for all property types, and in-house underwriting that is centered around the goals of the borrower.

If you are seeking debt for your commercial real estate investment, whether it’s for refinance, acquisition, or other, here are some important tips to help expedite approval and streamline the underwriting process:

 

  1. Plan Ahead: Gather what is needed for the underwriting checklist early so that you are armed with what you need to get the most accurate quote from lenders.

 

  1. Explore Options: You may be surprised by what you are offered if you put the right lenders to work for you. Talk about what is important to you, such as: Recourse or non-recourse, loan term, prepayment penalty, desired rate, plans for cash-out and timeline for the transaction. Having an underwriter that can pivot easily to help you understand the loan type that is best for your transaction is important.

 

  1. No Surprises: Changes can take place with your loan transaction from the time a quote is given through the due diligence and loan closing process. Choose a lender that is giving you a true quote, based on all the required information and have a discussion about any issues that would impact the underwriting early on. Otherwise, you may end up wasting time pursuing a path that cannot be achieved in the end.

 

  1. Keep an open line of communication: The more an underwriter understands about your particular property and financing needs, the better.

 

As we review each individual transaction, we focus on both the needs of the borrower and addressing potential risks of the loan. Our goal is to be transparent to all parties so that there aren’t any surprises during the approval process or closing.”

 

PLUM specializes in the capitalization of middle-market commercial real estate properties nationwide. We deliver creative and customized direct lending programs and a full array of loan options for all commercial property types.

Explore your PLUM loan

Related

Ensure a Smooth Refinance: Tips for Quick Loan Closings

A quick, smooth loan closing begins before you reach out to a lender.  It’s made possible by understanding the type of documentation lenders look for, and when, and in which format, they need to receive it.    The type of property being financed will influence key documents; however, the following are items that are consistent across…

Read More >>

Understanding the Structure and Benefits of CMBS Loans

CMBS loans have become popular in 2024 as regional and local banks have slowed or halted new loan production. For those that aren’t as familiar with the CMBS product, the loans are heavily structured and largely originated by lenders with little to no customer relationship. The loans are quickly sliced, diced, pooled and converted into…

Read More >>

Actions By The Fed Do not Singularly Determine Commercial Real Estate Interest Rates

While the Fed is an important driver in the economy, it isn’t the only factor that shapes long-term interest rates for commercial real estate.  We saw interest rates move independently of the Fed’s actions in the year 2000.  At that time, the Fed had abandoned their two year fight against inflation and turned on its…

Read More >>

We all could use an extra $800,000

Santa came early for some commercial real estate owners who locked a rate in the past week.   The 10YR US Treasury yields dipped then rallied last week, declining to 4.11% before bouncing back to current levels near 4.25%.  Is this dip and then increase back to the prior week’s levels a sign of a…

Read More >>

CRE Owners Catch a Break

CRE Owners Catch a Break   This past week, commercial real estate owners caught a huge break.  The 10YR treasury yields fell almost 0.30% throughout the week, and are 0.80% lower than their high of ~5.00% in mid October. Not even Friday’s comments by Fed Chair Powell that “rate cuts are premature” stopped yields from…

Read More >>

© 2019 PLUM Lending. All Rights Reserved. | Terms of ServicePrivacy | Plum, Inc. dba Plum and/or Plum Lending