Commercial Real Estate, also called Multifamily, is classified as an income-producing property with five or more units in one building. Any rental property under five units is considered residential real estate.
When it comes to commercial loan underwriting, this distinction becomes extremely important. Not only does loan underwriting hinge on the personal creditworthiness of the borrower, like residential lending, but it also depends on the income-producing power of the property.
When a borrower fills out a loan application, the lender will go through a series of requirements, the borrower and the property need to meet for the loan application to be approved. This process is called loan underwriting. Currently, most lenders use a mix of manual underwriting and automated underwriting to speed up the underwriting process and eliminate errors.
The commercial loan underwriting process can be quite time-consuming. The underwriter will spend the most time considering the three C’s of underwriting:
When you are familiar with the loan underwriting process and realize the requirements a borrower and property need for loan approval:
Lenders then know when they review your application, you have the necessary terms and conditions met. They can confidently approve your commercial real estate loan in less time.
Other loan underwritingbenefits to both borrower and lender is when all appropriate documentation is available, automated underwriting will expedite the loan underwriting process. Through automated underwriting for commercial real estate, lenders can have the answers they need in a matter of minutes, making it possible for a faster loan approval process.
Lenders rely on only the best companies to assist with automated commercial loan underwriting. The Service Hub from Clik.ai is one of those trusted resources.
Clik.ai has been helping Commercial Real Estate investors, brokers, lenders, and managers navigate commercial loan underwriting since 2017 and have helped identify $12 Billion in commercial real estate opportunities.
By working with the Servicing Hub, Commercial Real Estate investors and lenders can reduce operating expenses, stay competitive, free up time to focus on lending relationships, and spend time on deal analysis rather than paperwork for commercial loan underwriting.
When looking for a company to help with commercial loan underwriting, consider the Services Hub. Our on-demand team of commercial real estate analysts has expertise in commercial lease abstraction, automated commercial underwriting, and much more.