Getting your client’s commercial mortgage application approved by a credit committee can prove challenging as lenders processes and criteria are often vastly different and gathering the information requested can seem overwhelming.

Talking us through the best way to get your commercial application approved, Rob Lankey Managing Director at Aldermore Commercial Mortgages gives us his top ten tips…

Tip 1: Make it your business to find out

If you want your client’s commercial mortgage application to sail through a credit committee, you need to make it your business to find out how a lender’s credit committee works, because every lender is different in the way in which is assesses and approves loan applications.

The first step is to find out how cases are processed: who handles the cases, what size of case they’re authorised to approve and what size of case is referred to credit committee. All it takes is a phone call and most lenders will be quite happy to share this information with you - it’s in their interests to do so. 

Ask if there’s a critical loan size when the assessment process becomes more robust and when applications are referred to credit committee (again it will vary from lender to lender) and ensure you know the basic facts about how a lender’s credit committee operates. For example, do they meet once a week or more frequently; do they meet face-to-face or via teleconferencing or do they simply circulate a credit paper to key individuals for approval?

Also find out if and when a customer visit will take place before or after submission to credit committee and ask the same question about the valuation? Also confirm how much the whole process will cost your client?

This basic background information will enable you to gain a clear understanding of how your client’s application will be processed and will enable you to better manage their expectations.