By: Laura Fish
The commercial loan process is well known for being wrapped in red tape. But why? Well, what do you do before you purchase something? You examine it thoroughly to make sure it’s in your best interest to buy it, right? Isn’t it reasonable to expect a lender, the one giving you the money to purchase that item, the opportunity to do the same? Let me help unravel the red tape.
What documents do I have to provide and WHY?
Before we can lend you money, we need to understand the church’s financial picture and the way the loan will help in your ministry. The list below is where we start with your application. We are assessing the financial health of the church, their ability to repay the loan and, eventually, the value of the property to be purchased.
Why are these documents so important?
Our assessment of these documents gives us a good picture of the health of the church and the viability of the property. We consider ourselves ministry partners with churches and want to see them grow and spread the gospel. To that end, we want to share our extensive knowledge in the financial area and make sure churches stay sound and capable of ministry. One of the ways we do this is to offer loans that are fully amortized over the life of the loan. We also are entrusted with protecting our investor’s funds.
Why does it take so long?
It may seem as if the process is long and drawn out, but there is much going on behind the scenes. Once an application is received, the underwriting process begins with loan, property and church analysis. We will need answers to a number of questions. The Loan Committee or Board must approve EVERY loan.
My loan is approved; when do I get my money?
Whoa, not quite so fast. Once a loan is approved, the Loan Closing Process is started. The church’s ability to buy the property has been approved (congratulations!) but there is more red tape to unravel regarding the property and the church documents.
Let us help
When your loan is approved, our loan closing team will work with you to ensure a smooth closing process. It’s not every day that a church buys, or builds on, a property, but our team has extensive knowledge in this area and can help guide you through the process. It also takes great teamwork to build great churches. Like Rome, churches aren’t built in a day.
Meet the team
Barb Ehlers – Relationship Specialist – Barb might be your first contact with Cornerstone Fund, as she calls churches and investors to see how we can help them. If you’ve ever met or talked to Barb, you won’t forget her sparkling personality and eager-to-please mentality.
Nate Krueger – Associate Director of Church Lending – Nate will be the one to do the number crunching and talk with you about all the different ways we can help you afford that building you’ve been eyeing or been saving to build. He’s known as the guy with a million analogies and creative ways to make financing work for our churches.
Laura Fish – Loan Closing Specialist – Laura gets the handoff once a loan is approved. She deals with churches and the myriad of contingency items and documents required to close a loan. You will hear from her quite a bit during the closing process, she’s known to be the “compliance gal.”
Adrienne Keyes – Loan Funding Specialist – Adrienne takes over once a loan is funded. She handles all the post-closing paperwork and loan payment details. You’ll chat with her about interesting things such as amortization schedules and P/I breakdowns. She also helps fund the construction draws for churches building and renovating. She might be soft-spoken, but she will make sure all your construction lien waivers are in place before your project ends so you have a lien-free property!
Got a question about our loan process? Just shoot me an email.