Funding Stages

We believe it's very important that our Brokers and Clients understand these stages, so that the process is followed and everyone's expectations are met.

Project Funding Stages

Stage 1: Pre-Underwriting Tier 1-2

  • Submission from the client, with Application and Checklist of Documents.
  • The Project goes through the Underwriting Predictive Risk Modeling.

Stage 2: Underwriting

  • Underwriting either sends the client a denial or a pre-approval letter. 
  • Internal approval with partners.
  • Waiting for the client to send the rest of requested documentation required to get a term sheet.

Stage 3: Final Underwriting

  • After all the documents provided by the client, we provide a term sheet. 
  • After Term sheet is agreed upon by all parties, Final underwriting will send out all additional needed documents that were not provided previously.

Stage 4: Contract Stage

  • After Final Underwriting approves the Project, Risk Management then takes over.
  • Legal will start working on the loan agreements and documents.
  • After contracts are agreed upon and signed by the client, Risk Management gives final approval.
  • After all internal approvals from Risk Management, legal and Loan Documents are signed by
    all parties Loan Documents are lodged with Custodian and Escrow Attorney.

Stage 5: Custodial Engagement (Tier 1 & 2 Funding Only)

  • We provides references of previous clients (If needed).
  • Custodian Attorney provides introduction of Custodian.
  • Custodian provides verification of source of funds.
  • Custodian sends a letter to the client, Custodian Attorney, Custodian and to us confirming that all parties can perform, based on the signed Loan Documents.

Stage 6: Closing (Tier 1 & 2 Funding Only)

  • Client follows instructions of the Attorney / Custodian and transfers Cash Collateral to the Custodian.
  • Custodian confirms to the client, Attorney / Custodian that all parties have completed their initial responsibilities. (Tier 1 & 2 Funding Only).

Stage 7: Post Closing (Tier 1 & 2 Funding Only)

  • Custodian / follows the draw schedule stated in the Loan Documents and provides the draws to the client.
  • Funder collects interest-only payments and principal payments based on the Loan Documents and agreements.

Project Funding Stages Tier 3

Stage 1. Pre-Underwriting

  • Submission from the client, with Application and Checklist of Documents (Application).
  • The Project goes through the Underwriting Metrics (See Funding Metrics).

Stage 2. Underwriting

  • Underwriting either sends the client a denial or a pre-approval letter. 
  • Internal approval with Partners.
  • Waiting for the client to send the rest of requested documentation required to get a term sheet.

Stage 3. Final Underwriting

  • After all the documents provided by the client, we will provide a term sheet specifying the terms and expectations of all parties.
  • After Term sheet is agreed upon by all parties, Final underwriting will send out all additional needed documents that were not provided previously. (Application/Checklist)

Stage 4. Contract Stage

  • After Final Underwriting approves the Project Risk Management then takes over.
  • Legal will start working on the loan agreements and documents. (Loan Agreement see Section 9)
  • After contracts are agreed upon and signed by the client Risk Management gives final approval.
  • After all internal approvals from Risk Management, legal and Loan Documents are signed by all
    parties. Loan Documents are lodged with Custodian and Escrow Attorney.

Stage 5. Closing

  • Client follows instructions of the Depository.
  • Depository confirms that all parties have completed their initial responsibilities.

Stage 6. Post Closing

  • Depository follows the draw schedule stated in the Loan Documents and provides the draws to the client.
  • Funder collects interest-only payments and principal payments based on the terms and conditions in the Loan Documents.

Have Questions? Call: (678) 369-3996