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Our Commercial Mortgage Transaction Process

Want to know how the commercial loan transaction process works at Silver Hill Funding, LLC?

Let’s break it down step by step.

Note: you can watch a webinar recording on this topic here.

 

Starting with “Why”

Why take the time to detail every stage of our commercial lending process? Because knowing what to expect makes a big difference for both brokers and borrowers.

It’s no secret that commercial transactions are more complex than their residential counterparts. If you’ve closed loans with different types of lenders in the past, you may have found yourself running into the same set of complications:

  1. Rules and responsibilities are never clearly defined
  2. The lender doesn’t communicate requirements in a clear manner
  3. The broker and borrower don’t know what to expect at each stage

These issues lead to frustrating experiences for everyone involved. And that’s what we want to avoid.

Our team at Silver Hill is committed to giving you all the information you need so you feel confident about closing your loan. We know your reputation is on the line and that you want to create a great client experience of your own.

So let’s get started.

 

Stage 0: Submission

The key to a strong submission is a clear understanding of our loan programs. Knowing Silver Hill’s borrower, property, and credit guidelines will help you quickly determine whether our solutions are a good match for your borrower.

Our post on closing loans with Silver Hill should give you the basic info you need.

If you decide to submit your deal to Silver Hill, your Regional Manager will ask for a few items based on the loan program that best fits your client’s needs:

 

Submission Requirements for Full Doc Loans:

  1. SHF completed/signed application OR 1003/personal financial statement/other application PLUS loan supplement form
  2. Tri-merged credit report
  3. Rent roll (multi-tenant properties)
  4. P&Ls/operating statements last 2 years and YTD for property
  5. Last 2 years’ tax returns
  6. Purchase contract (if applicable)

 

Submission Requirements for Lite Doc Loans (No Tax Returns):

  1. SHF completed/signed application OR 1003/personal financial statement/other application PLUS loan supplement form
  2. Tri-merged credit report
  3. Rent roll (multi-tenant properties)
  4. P&Ls/operating statements last 2 years and YTD for property
  5. Purchase contract (if applicable)

 

Submission Requirements for No Doc Loans:

  1. Completed loan application
  2. Credit report

No Doc Loan note: Borrowers will be required to submit a purchase contract for transactions involving a real estate acquisition. Appraisal companies may require property documentation to assess final value.

If you’re looking to submit small-balance commercial scenarios to Silver Hill, your first step should be to contact a Regional Manager in your territory. They can walk you through the process and direct you to resources that can make life easier, like our Silver Qualifier Mortgage Calculator or Application Checklist.

 

Stage 1: LOI Issue and Acceptance

Once your Regional Manager reviews your submission and determines that it meets Silver Hill’s guidelines, the following steps take place:

  1. A Letter of Intent (LOI) is delivered within 24 hours of receipt for all required documents
  2. You must then submit the signed LOI and documents within 15 calendar days
  3. The borrower submits payment through our online portal
  4. The loan status changes to “Processing”
  5. Your Regional Manager then delivers the submission to our Underwriting team.

These steps are set in motion within 48 hours of submission.

Stage 2: Conditions Update

At this point, our team will order 3rd party reports, such as the title, appraisal, background check, environmental screen, and credit report.

Strong communication at this stage is especially crucial. That’s why we take the time to properly introduce you to your Silver Hill Transaction Manager.

Along with a welcome letter, you’ll receive a conditions list that notes the documentation required before your borrower’s loan can close.

A quick tip before we move on to Stage 3: You can increase certainty of funding by returning all documentation before the appraisal is delivered.

 

Stage 3: Underwriting and Review

After receiving the completed appraisal, our underwriters perform a full review of your client’s file. Then we issue a pre-approval letter based on the information submitted to date.

This letter details the documents our team still needs to finalize the underwriting process.

To ensure that our letter is accurate and up-to-date, work with your client to submit all documentation before our team receives the appraisal.

As you know, all sorts of issues can arise during the underwriting of a commercial loan. Checking in regularly with your Silver Hill team (your Regional Manager and Transaction Manager) will help you feel more confident about the loan’s status.

This will also help you answer any questions your borrower may have.

Since commercial loan appraisals are more complex and take longer to complete, our target window for the completion of the Underwriting and Review stage is 2-3 weeks.

 

Stage 4: Final Underwriting

This is where we make a final approval decision. Our team will review all conditions and the following reports:

  • Appraisal
  • Insurance
  • Title
  • Entity documentation
  • Certificate of occupancy (if applicable)
  • Payoffs (if applicable)

You can expect this step to take about 48 hours.

 

Stage 5: Closing and Funding

Congratulations, the loan is approved! Silver Hill will fund the loan after your borrower signs the loan docs and the closing agent reviews all documentation.

Funds are then disbursed within 24 hours of closing. We’ll then pay your fee as well.

 

When Everything Goes Right

Our Sales and Operations teams work very hard to provide a positive experience for you and your clients. Some closings are more challenging than others, but we’re proud of the feedback we consistently get from brokers who close loans with Silver Hill.

See just 2 testimonials below:

“This is the 2nd loan that I have completed with this team. In my history as a commercial loan officer, I have never seen a better process. I am impressed, to say the least. This team is the next level in the future of commercial lending.” – Eric G.

“My Regional Manager, Transaction Manager, and the entire team were a pleasure to work with! Can’t wait to get the next loan closed with the team!” – George P.

If you’re interested in creating a success story of your own with Silver Hill, make it a point today to connect with a Regional Manager in your territory. You can also create your free online account and get instant access to resources you can use to market our alternative lending solutions.