Commercial Loans · 2 min read
Commercial Real Estate Loan Documents Checklist
A commercial real estate loan documents checklist: property, sponsor, entity and business plan items lenders ask for, and why.
This guide is part of our Commercial Real Estate Loans hub.
A complete file is the fastest way to real terms on a commercial real estate loan. Here is what lenders commonly ask for, grouped by category.
Property documents
- Purchase contract or current mortgage statement
- Rent roll with unit, tenant, rent, lease dates and deposits
- Trailing 12-month operating statement (T12)
- Two to three years of operating history when available
- Current leases for commercial tenants
- Photos, property description and any recent capital improvements
Sponsor documents
- Personal financial statement
- Schedule of real estate owned
- Resume or track record of similar projects
- Bank statements showing liquidity
- Credit authorization
Entity documents
- Articles of organization or incorporation
- Operating agreement
- EIN letter
- Certificate of good standing
Business plan items
- Capital improvement budget and timeline
- Pro forma showing projected income and expenses
- Exit strategy, such as refinance or sale
- Market data supporting rents and value
Third-party reports (after terms)
Once you accept a term sheet, the lender orders reports such as an appraisal, environmental site assessment and property condition report. These are paid by the borrower, which is why getting accurate terms first matters.
Why lenders ask for each one
The rent roll and T12 establish income. The PFS and REO show you can carry the deal and have done it before. The business plan explains the exit. Missing items do not always kill a deal, but they slow it down and can lead to tougher terms.
Financing a transitional property? Read commercial bridge loans explained.
Related guides
Explore the full hub: Commercial Real Estate Loans. Other financing: Fix and Flip & Hard Money Loans · DSCR & Long-Term Rental Loans · Unsecured Business Loans · Trust Deed Investing.
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Terms, leverage and timelines vary by lender, property and borrower qualifications. This article is general information, not financial, legal or investment advice, and not a commitment to lend.