Is this necessarily a BAD thing?
Cambridge Realty Capital Companies Chairman Jeffrey Davis says borrowers are sometimes surprised when they learn how forthcoming their lender expects them to be. Get over it, he advises.
Davis says lenders expect borrowers to be knowledgeable experts when describing their business. If the borrower hopes to get anywhere, they must be prepared to share pertinent operational details.
According to Davis, the more the borrower is able to articulate about the business, the better his/her chances for obtaining hoped-for financing becomes.
Sometimes, for competitive reasons, borrowers may be reluctant to give up certain types of financial information. But withholding information really isn’t an option.
As part of the underwriting process, lenders are obligated to gather specific information for HUD and other lending institutions. There’s simply no way around this.
The types of questions borrowers typically find most perplexing are those dealing with occupancy and lease-up projections, expense management and costs, or timing issues. It may be that the borrower is not reluctant to share needed information but has trouble organizing it in an efficient way, which can have the same result.
Important to any relationship between borrower and lender is the understanding that information shared will be held in strictest confidence. Before deciding to work with any lender, it’s important to make certain that trust and confidence are part of the equation.