The church provides BCLC with a title commitment policy. This is a written statement from a title company indicating willingness to insure a first lien on the property. Upon receipt of the policy from a title company, BCLC will supply the church with a commitment letter. The commitment letter will indicate approval of the loan and provide detailed information regarding requirements that must be met related to the permanent loan closing. The church can use the commitment letter to help secure interim financing for the project from a bank or other lending agency.
Interim financing is the money used during the construction process.
The interim lender will request some of the same financial information required by BCLC plus a working set of construction plans, construction bid, information about the contractor, builders risk insurance and a title commitment. It is important that interim financing be secured before any work begins on the project. When the project is completed and the church notifies BCLC they are ready for permanent financing, a BCLC representative makes final inspection of the project and a letter of closing instructions is sent to the title company. BCLC will wire the loan proceeds to the title company for their distribution. If the loan requested is to purchase land or an existing building, the same procedures should be followed for Steps 1 through 5.