AIM Financial Services

Process

As is the case in any service related industry, communication is key. Therefore, regular updates are given to the borrower from our loan coordinator and commercial

Once a financing need is identified, the process begins with a simple dialogue to determine the viability of the need. For instance, by understanding the occupancy level, gross revenues, expenses and resultant net operating income (NOI), we can quickly calculate the approximate loan size the apartment property will support. If we’re in concurrence, the 4 step process begins:

Step One….. Letter of Intent (LOI) Stage: We will request a current Rent Roll, Operating History (operating results for the last 2 fiscal year ends the current year to date) and 5 Digital Photos. Within 2 hours will issue a LOI that will detail the loan amount, rate and term we believe we’ll be able to deliver based on this preliminary information.

Step Two…….Due Diligence Stage: We obtain the remaining items for the loan package (i.e. loan application, tax returns (personal and corporate, if applicable), leases, 2 month bank statement and borrower resume), the check for the third party fees (i.e. appraisal, property inspection and processing) and executed business contract. Also, we obtain the contact information for the borrower’s closing agent/attorney and insurance agent.

Step Three……Underwriting Stage: We prepare the underwriting package from this information, draft other documents and forms for the borrower to review and sign and submit the package for final approval. Additionally, we begin coordinating the closing process with the closing agent/attorney as well as correspond with the insurance agent to determine that the completeness and accuracy of the required insurances are being met.

Step Four………Closing and Funding: We coordinate with all parties, closing agents for the lender and borrower, and confirm that all documentation is complete to ensure an accurate and efficient closing process.

The entire process takes between 30 and 45 days and depends mostly on the timeliness and accuracy of the initial documentation. The appraisal process is fairly consistent at 3 weeks as we deal with national appraisal firms. Therefore, the workability of the title company and insurance agent can play a significant role in extending or improving this timeframe.