Construction loans for commercial real estate (CRE) remain a major part of commercial bank lending. Many community banks attempt to use versions of their residential formats and policies to administer commercial construction loans; however, this generally does not adequately control the situation due to several important differences between residential and commercial projects.
This program provides an overview of the key steps involved in effectively administering commercial construction loans..
Commercial lenders, credit analysts and support staff that deal directly with commercial construction loans; mortgage bankers, private bankers, small business lenders, loan review specialists, special assets officers, lending managers and credit officers indirectly involved in the construction lending process.
Top FAQs
The process for earning a "certification" involves taking advanced education, then passing an exam.
Mortgage Brokers typically help the purchaser negoiate a loan with lending institutions.
Commercial loans typically have lower terms and lower interest rates than residential loans. Purchasers expect to make money long-term via both rent and capital gains.
Depending on where you live, loan underwrites can expect to earn $100,000 or more.
A mortgage processor collects and reviews income, expenses, etc. If the information is favorable, the loan application is forwarded for loan underwriting. Essentially, the process determines the lender's ability to repay the loan.
Commercial mortgage loans are used to for commercial purposes such as commercial properties, warehouses, strip centers, and multi-family houses (four or more residences).
Commercial Mortgage Brokers typically earn between $100 and $150,000 annually.
A mortgage underwriter evaluates the applicant's credit history, assets, the size of the loan, then uses this info to dertermine if the applicant can pay back the loan.
A mortgage processor is responsible for assembling, administering, and processing loan application paperwork before it gets approved.
While Mortgage Loan Officers must be licensed, most states do not require loan processors to be licensed. That said, be sure to check your state's requirements.
A loan underwriter assesses the risk of lending money for a home, car, or debt consolidation.
Mortgage certification programs offer mortgage professionals a chance to acquire essential skills, enhance their professional standing, and earn more.
Potential risk of default, especially if not enough renters, economic downturn, etc. More qualification paperwork and requirements.
Depending on where you live, loan processors can expect to earn $50,000 or more.
While the Mortage Loan Office must be licensed, mortgage underwriters do not need a mortgage license.
