Gather These Commercial Real Estate Loan Documents for Streamlined Approval Process

August 16, 2022

A successful commercial property transaction starts with finding the ideal location for your development or business. Once you’ve found your perfect spot, you’ll need to start the financing process for acquiring and developing the property. That’s where we can help by offering commercial real estate loan programs that fit your deal.

In order to apply and qualify for a commercial loan, your business will need to gather and prepare a large amount of completed, detailed financial and legal documentation. Learn about the importance of preparing commercial real estate loan documents in advance, and how early preparation can streamline the application and approval process.

Why Early Preparation Helps with Commercial Real Estate Deals

Commercial real estate loans provide financing solutions for businesses that want to purchase and develop a property, but they don’t want to use their working capital or jeopardize their existing cash flow to finance it. Lenders need to be confident that your business can repay a commercial real estate loan, which is why we ask for significant documentation to make an informed lending decision.

As a potential borrower, your company can build that confidence by providing a thorough account of your financial standing, legal documentation, future plans, and other necessary documents.

Providing us with complete paperwork will help expedite our review. We want you to be prepared for the documentation required for each of the commercial real estate loans that we offer. By providing you with this information, we are confident that we can work together to streamline the loan approval process.

Types of Commercial Real Estate Loan Applications

Applying for a commercial real estate loan is a process that depends upon the purpose and type of property you plan to buy or build. You should be able to clearly document the benefits of acquiring the property for the business, or the expected completed value if you plan to rent out or later sell the developed property.

The two most common types of commercial real estate loans are owner-occupied real estate loans and non-owner-occupied real estate loans. Each type of loan has a different set of documents required for the loan process, so it’s essential to understand the specific requirements to ensure a smooth application process.

1. Commercial Owner-Occupied Real Estate Loans

A commercial owner-occupied real estate loan is intended for businesses that plan to occupy the property being purchased and developed, such as a medical facility, restaurant, office building, or retail store.

The loan documentation required for this type of financing should demonstrate your company’s ability to pay off the loan and the long-term value and benefits the property will provide the company.

The required documentation for a commercial owner-occupied real estate loan includes, but is not limited to the following:

Purchase contract
Detailed information regarding the use of the property
Environmental assessments (e.g. are there environmental concerns on the property?)
Overview of the company’s business model
Floor plans, building specs, budgets, and contractor information for construction projects
At least three years of business financial statements and tax returns
Financial projections that reflect the company benefits from acquiring/developing the property
Company’s corporation, LLC, or other legal entity documents
A personal financial statement that reflects all assets, liabilities, net worth, and cash flow of the guarantor/owner
Acceptable credit score and credit history of the business and its guarantors/owners that meet the bank’s underwriting criteria
Required permits or business licenses

Loan documentation should confirm that your business’s historical cash flow should be sufficient to service all existing debt as well as the requested loan.

2. Commercial Non-Owner-Occupied Real Estate Loans

If your business plans to acquire and/or develop a commercial property with the intention of renting or leasing the space or selling it at a future date, then a non-owner-occupied real estate loan will be the optimal choice for your financing needs.

All required commercial loan documents for these loans should verify your company’s experience specific to the property type. Additionally, the property’s historical cash flow will be important to determine the viability of the project.

The required documents for a commercial non-owner-occupied real estate loan include, but are not limited to the following:

Purchase contract
Detailed information regarding the property being acquired. For income-producing rental properties, lease terms and tenant information should be included.
Environmental assessments
Floor plans, building specs, budgets, and contractor information for construction projects
Description of each owner/guarantor’s experience in buying, selling, and managing this specific type of real estate
At least three years of business financial statements and tax returns
Recent market/value information for the sub-market of the property
Legal documents of the entity that will own the property
Financial projections and operating history of the property
A personal financial statement that reflects all assets, liabilities, net worth, and cash flow of each guarantor/owner
Acceptable credit score and credit history of the business and its guarantors/owners that meet the bank’s underwriting criteria
Permits and licenses

Ultimately, the expected cash flow and property value will be the primary factor in determining the approval of a commercial non-owner-occupied real estate loan.

Apply For a Commercial Real Estate Loan Today

Texas Gulf Bank has 100 years of experience helping Texas businesses, developers, and investors achieve long-term success and growth by offering financing solutions for all types of industries. We believe in the value of building strong relationships with our customers, and this starts with offering personalized service and expert guidance for your specific business goals and needs.

We offer a straightforward commercial real estate loan application process that is supported by our team of experienced loan officers who can guide you through each step in the process. As an independently-owned bank, we offer flexible and expedited loan reviews, and approved loans are quickly funded in order to help your business complete your acquisition.

Start working with Texas Gulf Bank today to pursue your commercial real estate goals, and learn why thousands of businesses have made us their preferred banking lender for their commercial real estate loans.

For more information about the commercial real estate loan documents that we require as part of the loan application, contact our team to request a consultation. You can also call us at 800.467.7216 to get started today.

All Loans Subject to Credit Approval