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When considering a loan, what is the lender looking for as it relates to the sponsorship? Experience...

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Finance

  1. When considering a loan, what is the lender lookingfor as it relates to the sponsorship?
  1. Experience in ownership/management of commercialproperties
  2. Conservative levels of DSCR and LTV throughout the existingportfolio of properties owned by the borrower
  3. Good quality credit profile
  4. All of the above
  1. Once the term sheet is signed and the processleading up to the closing of the loan begins, which third partyreport takes the longest to prepare and therefore ordered first bythe lender?
  1. Environmental and Engineering
  2. Appraisal
  3. Zoning
  4. None of the above
  1. A developer purchases a piece of land on which (s)heplans to build a 30-unit multifamily building with 4 retail spaceson the ground floor. What type of loan is (s)he most likely to getfor the construction period?
  1. Short term construction (bridge) floating rate loan
  2. 10-year fixed rate loan with a 30-year amortizationschedule
  3. 5-year fixed rate first mortgage
  4. None of the above
  1. What are the main points to look for in the termsheet?
  1. Loan amount and maximum LTV
  2. Interest rate, loan term and prepayment penalty
  3. Borrower’s experience qualification requirements
  4. a and b
  5. All of the above

Answer & Explanation Solved by verified expert
3.7 Ratings (488 Votes)
1 All of the above Experience in ownershipmanagement of commercial properties ensures that the sponsorborrower would have caliber to make the project successful eliminating the risk of default Conservative levels of DSCR and LTV throughout the existing portfolio of    See Answer
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When considering a loan, what is the lender lookingfor as it relates to the sponsorship?Experience in ownership/management of commercialpropertiesConservative levels of DSCR and LTV throughout the existingportfolio of properties owned by the borrowerGood quality credit profileAll of the aboveOnce the term sheet is signed and the processleading up to the closing of the loan begins, which third partyreport takes the longest to prepare and therefore ordered first bythe lender?Environmental and EngineeringAppraisalZoningNone of the aboveA developer purchases a piece of land on which (s)heplans to build a 30-unit multifamily building with 4 retail spaceson the ground floor. What type of loan is (s)he most likely to getfor the construction period?Short term construction (bridge) floating rate loan10-year fixed rate loan with a 30-year amortizationschedule5-year fixed rate first mortgageNone of the aboveWhat are the main points to look for in the termsheet?Loan amount and maximum LTVInterest rate, loan term and prepayment penaltyBorrower’s experience qualification requirementsa and bAll of the above

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