Once the lender receives the fully executed Formal Application, the funds for third party reports and all other requested items, the lender will assign the loan over to its underwriting department. It usually takes about four weeks in underwriting. Most of this time is taken up waiting on the third party reports, including the appraisal, engineering, environmental, and an on site inspection of the project by the lender. If the loan is approved the lender will issue its Loan Commitment, which actually looks just like the Formal Application. The applicant will usually have one week to accept the Loan Commitment.
Closing is normally quick, but can take as long as thirty days on large projects.
We have tried to detail as much of the application process as possible for you, however it is impossible to cover all types of projects and all types of loans in one summary. Please feel free to ask your HMC loan officer for additional information about your particular project and application.