Learn How Your Commercial Loan Will Be Processed
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It is important to know how your loan application is processed in order to know your limitations and to go trough the process with ease. Following is a brief explanation on how commercial loans are processed and what to expect out of the qualification procedure.

When it comes to commercial loan applications there are two defined processes that take part on the loan qualification: The prequalification process and the actual qualification or approval process. These are two well distinct procedures with different purposes. Moreover, if you hire a broker’s services, the intermediation of the broker will add up an additional step with important implications.

The Brokers’ Assistance

Brokers can assist you in the process of obtaining your commercial loan. They will help you negotiate the best terms on your business commercial loan. The first step is to contact different lenders with your information and request quotes informally to help you compare their different offers and then decide which one is best for you.

Brokers will also assist you in contacting professionals that will provide you with reports, appraisals and all the backing up documentation you will need to process your commercial loan.

They will also assist you in preparing all the paperwork that you will eventually sign in order to successfully apply for your desired commercial loan. If you are applying for a commercial loan with your local bank you may not need the aid of a broker but it is always better to hire the services of a broker and get different loan offers so you can obtain better terms.

The Pre-Qualification Process

The pre-qualification process is important as it will determine how much money you can obtain. Pre-qualification is an informal process where the lender using the information you provide and that you will later need to prove, analyzes your credit and financial situation to see what kind of monthly payments you can afford and based on that information the terms of the commercial loan will be determined.

The type of information you will need to provide at this point is simple. For instance you will have to provide a copy of your credit report or authorization to pull it, your income, assets and debts (later you will need to show proof of all of this).

Once you know that you have been pre-approved and that you will be able to get approved for the loan that you want, you have to apply for the actual loan by submitting the application.

The Approval Process

Immediately after receiving your application, the approval process will begin. All the information will now be reviewed along with the backing up documentation that you provided. If necessary an investigation will be conducted as regards to your credit, income and assets (especially when used as collateral for the loan).

Once a decision is made which can take between five to ten days, a document will be prepared for both parties to review and sign. It is important at this point to have the document reviewed by an expert legal advisor with business knowledge too. Once all documentation is signed a few more days may be needed for the money to be released.

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Jessica Peterson writes finance articles for Yourloanservices.com where she shares her knowledge about how to get money for a starting-up business, consolidating any kind of debt, repairing a home even with a bad credit history and more.

Article Source: http://EzineArticles.com/?expert=Jess_Peterson