PulsePoints

Lenders usually get accurate data, but it’s almost always incomplete. Borrowers need to carefully review all statements, census data, and legal documentation. If the borrower will be paying off the debt, it’s important to make certain that the debt is open to prepayment.

It’s never a good idea to fudge even a little bit when presenting information to lenders. However, lenders routinely deal with projections and projections can get very aggressive.

A pragmatic approach is most desirable. It’s important to spend the necessary time and energy needed to generate and project the most accurate information possible.”

There are many ways to organize census data, none better than others. The key when presenting a rent roll or similar document is for the borrower to generate as much detail as possible. More information is generally better than less.

When lenders ask for current debt information, the important items are outstanding debt amount, term, interest rate, amortization, prepayment option, and personal recourse. Ideally, the lender will get a copy of the mortgage and note.

There are many reasons why it’s important for borrowers to be diligent and careful when presenting information to lenders.

Productive, long-term relationships are built on the expectation that the information provided by borrowers will be accurate and reliable. Long-term relationships are important because they enable borrowers to gain greater understanding of the capital markets but also because they make the outcome of any loan application more predictable.