Investing into a multifamily apartment project requires a hefty amount. So, one must need to do a thorough market research regarding several factors including market rents, operating expenses and obviously multifamily apartment loans. As such loan is of big size, therefore, the borrowers need to provide a project description along with the summary. The description includes the provision of basic necessities as well as amenities, plan of the building, rough estimation of the project cost and how much the project is environment-friendly.
Once you are done with the initial processing, the lending authority will issue an 'Invitation letter'. This letter is a written acknowledgement that your project is worth getting the multifamily apartment loans. Once your project is considered feasible, the next step of loan processing starts. During this period, the cost of the project is analyzed in detail. Finalized architectural plan, construction costs and other details are meticulously checked. Review of the design of the proposed building and its cost are evaluated to finalize the deal and determine the size of the multifamily apartment loans. When all the necessary steps are finished, a commitment paper will be handed over to you. The paper is a proof of an investor's intention to finance your project and it also mentions the rate of interest charged for the loan.
Closing is the final step of the multifamily apartment loans processing. The investors need not to be worried regarding the permanent loan interest rate risk due to the locking of interest rate for both mortgages. Different sources are there to provide the borrowers with the multifamily apartment loans. The interest rate and repayment facilities vary from one lender to another. Some non-traditional lending programs issue a commitment paper containing the details of all the relevant items including the approval of design, cost and general contractor.