Funding Stages

We believe it’s very important that our Brokers and Clients understand the different 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