Credit Evaluation School Dec 2022

COMMERCIAL LOANS COMMERCIAL REAL ESTATE

What is it: A loan to a commercial business for business purposes secured by real estate for the purpose of purchasing, acquiring, developing, or constructing an income producing property. Typical loans within this category are: business and industrial properties, apartment or condominium buildings, hotels, hospitals, golf courses, nursing homes, mini-storage warehouses, etc.

4. PRIMARY DOCUMENTS REQUIRED:

☐ Promissory Note ☐ Borrowing Resolution ☐ Article of Incorporation ☐ Mortgage or Deed of Trust (properly filed) ☐ Appraisal or Evaluation ☐ Independent Review of Appraisal or Evaluation ☐ Title Insurance Commitment or Preliminary Lien Search ☐ Title Insurance Policy or Title Opinion ☐ Evidence of Property Insurance ☐ Tax Returns ☐ Balance Sheet and Profit and Loss Statement ☐ Lease or Rental Agreements (depending on property type) ☐ Assignment of Rents (depending on property type) ☐ Guarantees (if applicable) ☐ Personal Financial Statement for Guarantors (if applicable) ☐ Tax Returns for Guarantors (if applicable)

Page 4