On today’s show we are talking about negotiating with a lender. We have a loan application in process that has taken much longer to finalize than promised. 

It often happens that a project has complexity associated with it. The lender puts the data room into underwriting and what comes out the other end often is surprising. Surprises at this stage are usually not good surprises. The terms at closing can differ significantly from the terms offered in the signed term sheet. 

This is where it is important to ask questions. Why did you reduce the loan amount? Why did you increase the interest rate? Why did you increase the loan interest reserve to such a high level? 

It’s through this process that you can gain an understanding of how the lender is looking at the project. We have a file in front of a lender right now that experienced several misunderstandings. 

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