Commercial Mortgages 101: Everything You Need to Know to Create a Winning Loan Request Package

approval by the loan committee. Remember, basic information found

on a loan application such as the borrower’s name, address, phone

number, employer, income, and basic property information is never

enough and should always be supplemented with a complete loan

request package. A loan r equest package is similar to a business plan

and highlights the salient facts of the loan transaction. A standard

commercial loan request package is divided into six sections with the

following headings:

1. Executive Summary

2. Property Description

3. Location and Demographics

4. Property Economics

5. Market & Submarket Data

6. Sponsorship

Executive Summary

The first section of the loan request package is the executive summa-

ry, which is a two- or three-page summary of all of the parts of the

entire package; the remaining sections contain the supporting mate-

rial that the executive summary has highlighted. The executive sum-

mary is really the heart and soul of the loan request package and is

the first section the lender will read. Whenever a lender needs more

details about a certain fact presented in the executive summary, he or

she can simply refer to the relevant supporting section at a later time.

An executive summary is an abbreviated narrative or list of all of

the salient facts about the loan request, the property, a nd the bor-

rower. It is much more detailed than the loan application but is brief

enough that a loan officer can quickly make a decision about whether

the bank is interested in making the loan. The idea is to provide as

Preparing the Loan Request Package

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