Application

You have weighed the pros and cons of ownership vs. leasing, examined your finances, and researched the desired location of your space. It is now time to secure your loan. At your application appointment, your loan officer will need a good deal of information about your business and its finances.

If you are purchasing through an assistance or specialty program, you might need to provide additional documentation. Be prepared for additional questions and requests for information. It could take several weeks for you to gather all the information the lender needs to make a decision on your loan application. 

Types of information and documentation the lender will request :

• Income Items and Verification
  • Year-To-Date Profit and Loss Statement signed by you and your accountant (self-employed borrowers);
  • Corporate/Partnership Tax Returns with original signatures;
  • Partnership Agreements;
  • Rental/Lease Agreements for space you presently occupy;
  • Copy of Notes Due. These are loans you have made to others, and represent money owed to you;
  • At least the last two months of bank statements;
  • Verification of stocks owned and dividends paid; and
  • Tax returns from at least the previous three years.
    
• Sources of Funds for Down Payment
  • Original bank statements for the last three months from savings, checking and investment accounts;
  • Stocks and securities account statements for the last three months;
  • HUD settlement statements, if using funds from the sale of a property; and
  • Sales of assets, including proof of ownership, proof of sale and proof of funds transfer.
    
• Payment History and Credit Items
  • Cancelled rent or mortgage payment checks for the past 12 months, if not available on credit report;
  • Name and address of present mortgage holder; and
  • Name and address of landlord and a 12-month rental payment history. Recent receipts or cancelled check are acceptable.
    
    
• Explanation letter for any of the following credit issues
  • Slow pay on credit,
  • Default or foreclosure,
  • Judgment or liens, and
  • Bankruptcy.
    
    
• Additional Information, if applicable:
  • Closing statement from sale of present property; and
  • Construction/Permanent Loan -- a signed construction contract with cost breakdown, builder plans and paid receipts.