Setting Up a Professional Executive Loan Summary for Prospective Lenders
It is essential to build and maintain strong relationships with lenders to achieve long-term success as a procuring broker.
Here’s why:
· Access to Capital
Lenders are your gateway to funding. A strong relationship ensures you have reliable sources of capital for your clients, even in tight credit markets.
· Faster Approvals
When lenders trust you, they prioritize your submissions. This means quicker underwriting, fewer delays, and a smoother closing process.
· Better Terms
Established relationships often lead to more favorable loan terms—lower rates, flexible structures, and higher loan-to-value ratios—giving you a competitive edge.
· Problem-Solving
Deals rarely go perfectly. A lender who knows and trusts you is more willing to work through challenges, such as appraisal issues or Borrower documentation gaps.
· Repeat Business
Strong relationships create a pipeline of repeat transactions. Lenders prefer brokers who consistently deliver well-prepared packages and honest communication.
Best Practices for Building Relationships
- Communicate Clearly: Provide complete, accurate loan summaries and respond promptly to questions.
- Be Transparent: Disclose both strengths and weaknesses of a deal upfront.
- Deliver Quality: Submit organized, professional packages that make the lender’s job easier.
- Follow Up: Stay engaged after closing—thank them, share updates, and maintain contact.
Bottom Line: Your reputation with lenders is one of your most valuable assets. Treat every interaction as an opportunity to build trust and demonstrate professionalism. Over time, these relationships will become the foundation of your success.
Why an Executive Loan Summary Matters
As the procuring broker, your role is pivotal in the loan process. You are not just a broker, but the primary communicator between the Borrower and the lender, responsible for answering all questions and presenting the proposed transaction in a clear, concise, and professional format. This document, known as the Executive Loan Summary, is not just a formality, but a crucial tool for earning lender confidence.
Key Components of an Executive Loan Summary
· Broker Information
o Your name and contact details.
o Desired fee for the transaction.
· Property Description
o Type of property, location, and condition.
o Income details (if applicable).
o Estimated value and supporting data.
· Visual Exhibits
o Include property photos, a location map, and a detailed property description.
o Organize exhibits logically for easy review.
· Transaction Analysis
o Positive Attributes: Highlight strengths such as substantial protective equity, stable income, or desirable location.
o Potential Weaknesses: Be transparent about risks or challenges. Lenders appreciate honesty and proactive solutions.
Best Practices for Sending Exhibits
- If you have more than 5–6 exhibits, split them into two or three emails to avoid exceeding the file size limit.
- Consider using secure file-sharing platforms like LockBox for large data transfers.
Follow-Up Protocol
- Email the Executive Loan Summary and exhibits to the lender promptly.
- Follow up within two business days to confirm receipt and address any questions.
- Be prepared to provide additional information or clarifications to help the lender make an informed decision.
Pro Tips for Success
- Anticipate Questions: Think like a lender—what would you need to approve this loan?
- Stay Organized: Keep all supporting documents in a digital folder for quick access.
- Communicate Clearly: Use bullet points, headings, and concise language to make your summary easy to read.
Closing Thought
A well-prepared Executive Loan Summary is not just a formality; it’s a crucial tool that demonstrates professionalism, builds trust, and accelerates approval. By presenting a complete, transparent, and visually supported package, you not only position yourself as a broker who delivers results but also build the confidence that you are presenting the best possible case to the lender.
Here’s a sample Executive Loan Summary you can use as a template:
Executive Loan Summary
Prepared By:
Dan Harkey, Procuring Broker
Desired Fee: $XX, XXX
Property Overview
- Property Type: 4-unit residential income property
- Location: 123 Main Street, Los Angeles, CA
- Condition: Well-maintained, recently renovated kitchens and bathrooms
- Current Income: $6,500/month gross rental income
- Estimated Value: $1,200,000 (based on comps and preliminary valuation)
Loan Request
- Loan Amount: $750,000
- Lien Position: First Trust Deed
- Loan Purpose: Refinance existing debt and provide funds for property upgrades
- Exit Strategy: Sale within 24 months or refinance with a conventional lender
Positive Attributes
- Strong protective equity (approx. 38%)
- Prime location in a high-demand rental market
- Stable rental income with long-term tenants
- Borrower has strong credit and verifiable income
Potential Weaknesses
- Borrower’s liquidity is limited; reserves are minimal
- Property is in a market with moderate price volatility
Supporting Exhibits
· Property photos
· Location map
· Comparable sales report
· Rent roll and income statement
· Preliminary title report
(If exhibits exceed email size limits, send in multiple emails or use LockBox for secure transfer.)
Next Steps
- Executive Loan Summary and exhibits emailed to lender on [Date].
- Follow-up scheduled for [Date + 2 days].
- Expect lender questions; additional documentation will be provided promptly.
Closing
A well-prepared Executive Loan Summary is more than a formality—it’s your opportunity to demonstrate professionalism, transparency, and value to the lender. By presenting a clear, concise, and visually supported package, you make it easy for lenders to evaluate the transaction and build confidence in your ability to manage the process. This proactive approach not only accelerates decision-making but also positions you as a trusted partner in every loan transaction.