The material facts of the transaction should be summarized and submitted to a lender via email as an organized written executive summary , followed by a phone call discussion . Usually , a request for more information is anticipated . Emphasize the positives first and the negatives later . However , do not bury the negatives so the lender discovers them next .
Lenders have long memories about who is professional and honest , supply only fragmented data , and summarily leave out adverse material facts . After a couple of repeated offenses , the assumption will be that the loan agent withheld the negatives intentionally . Reputations , both negative and positive , accrue quickly . Experience , understanding , and the propensity to fully disclose and protect the lender ’ s interest will ensure lasting relationships .
After reviewing the material facts , the lender may express an interest or decline the proposed transaction . Or the lender may ask for more information . If you receive a positive response , that is great , and if you receive a rejection , it is a rejection of your request , not a rejection of you . Move on to the next lender . Lenders have different risk assessment standards and pricing structures . For example , some lenders require an independent thirdparty appraisal , and some do not . Some lenders care about FICO scores , and some do not . Some lenders need assurances about the ability to pay , while others are less concerned . Some lenders should be more skilled in processing and underwriting and , therefore , take riskier deals unknowingly .
The loan agent looks forward to a term sheet or a letter of interest . The written term sheet will state the lender ' s terms and conditions to make the loan subject to an appraisal and underwriting of the material facts submitted by the
borrower .
The above is helpful as a platform for questioning borrowers for adequate information to submit to a prospective lender to obtain an expression of interest , a terms sheet , or a letter of interest .
I sincerely hope that you find value in this article . If so , please forward it to your associates . Please refer your friends and associates to my website at : www . danharkey . com .
Thank you ,
Dan Harkey
Educator & Private Money Finance Consultant
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