Silver Hill’s Commercial Mortgage Transaction Process Explained

Want to know how the small-balance commercial loan transaction process works at Silver Hill Funding, LLC? You’re in the right place! We’re going to break it down step by step to help you close your next loan with confidence and ease.

Starting with “Why”

Why take the time to detail every stage of our small-balance 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 like:

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.

We get it – these issues lead to frustrating experiences for everyone involved. And that’s what we want to avoid.

Here you’ll get 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.

You can get a definitive guide on how to close loans with Silver Hill here.

If you decide to submit your deal to Silver Hill, your Account Executive 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)
7. Copy of leases (if applicable)
8. Capital expenditures (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)
6. Copy of leases (if applicable)
7. Capital expenditures (if applicable)

Submission Requirements for No Doc Loans:

1. SHF completed/signed application OR 1003/personal financial statement/other application PLUS loan supplement form
2. Tri-merged 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.

Submission Requirements for Owner-Occupied Bank Statement Loans:

9. SHF completed/signed application OR 1003/personal financial statement/other application PLUS loan supplement form
10. Tri-merged credit report
11. Rent roll (multi-tenant properties)
12. P&Ls/operating statements last 2 years and YTD for property
13. Trailing 12 months’ business bank statements
14. Purchase contract (if applicable)
15. Copy of leases (if applicable)
16. Capital expenditures (if applicable)
17. Debt schedule (if applicable)

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.

 

Stage 1: LOI Acceptance

Send us your client’s executed Letter of Intent (LOI) and ensure they have deposited the appraisal fee and, if the transaction involves a commercial property, our non-refundable application fee (both are credited at closing).

YOU:

You and your client must also submit the following documents before we are able to order the appraisal:

• Completed Application
• Purchase and Sale Agreement (if applicable)

Note that the appraiser will require a Rent Roll, leases, and Operating Statement. We will not be able to complete the final underwriting process without these pieces in place, so be sure to help your client coordinate with the appraisal company through their document portal.

US:

Once we receive the executed LOI, necessary fees, and all required documentation, we will order an appraisal and background check.

BROKER APPROVAL CHECKPOINT: Only registered and approved brokers are able to do business with Silver Hill Funding. If your company is not already approved with us, be sure to register here.

Please note that we can move a loan transaction forward while your approval is in process.

 

Stage 2: Processing

US:

With the appraisal and background check now in process, we assign an expert Silver Hill Processor to your loan. Their first order of business is to send you a checklist of conditions required for this transaction:

• Initial conditions based on property and loan program type
• Entity-related documents
• Insurance contact information

Then your Processor will request the following 3^rd party reports:

• Environmental Screen (SBC only)
• Title (if we are responsible)
• Flood Certificate – the results will be used to determine whether or not flood insurance is required

YOU:

Your job at this stage is to help the borrower satisfy all required conditions before the AMC delivers a completed appraisal to our team. The more information we receive early in the process, the more certainty you can enjoy after the initial underwriting review.

What to expect with the Conditions Checklist:

During this early, critical stage of the transaction, you can expect to receive an updated Conditions Checklist email notification on a weekly basis. Take care to read through these updates carefully, as our team will highlight both missing conditions AND issues we’ve discovered regarding previously submitted documentation. These issues typically involve incomplete or expired documentation.

Please reach out to your Processor if you need clarification on any update during this stage.

 

Stage 3: Initial Underwriting

US:

Once we receive the completed appraisal, our Underwriting team will perform a preliminary review of the loan file. Your Processor will send you an updated Conditions Checklist highlighting any pending documentation and, if necessary, detailing any changes to the loan terms.

YOU:

Our team will not be able to finalize the underwriting process without all required conditions on hand, so be sure to review the updated Conditions Checklist and do your part to keep our transaction process on schedule. If we do not receive all remaining conditions in a timely manner, the loan can be in danger of being withdrawn.

 

Stage 4: Final Underwriting

Us:

It’s time for our team to make a final approval decision. We will need all required conditions plus the following reports before we can move forward:

• Appraisal
• Insurance
• Title
• Entity Documentation Clearance (if applicable)
• Certificate of Occupancy
• Payoffs (if applicable)

If the loan is approved, your Processor will send you a Final Loan Term Sheet (FLTS). The borrower can then acknowledge final terms by signing and returning the FLTS to us.

YOU:

Take this moment to help the borrower understand the listed terms and their next steps. Silver Hill will not schedule closing until we receive the signed FLTS, so this is an opportunity for you to keep the transaction on track.

 

Stage 5: Closing and Funding

Congratulations, the loan request is approved! Silver Hill funds the loan after the execution of loan documents and quality control review by the Closer. If all documents are in place, funds are typically disbursed within 24 hours of closing.

Note that you will receive your broker compensation 7-10 days following the disbursement date.

 

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 2^nd 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, Processor, 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 an Account Executive in your territory. And if you’re ready to become an approved Silver Hill broker, you can begin the application process here.