After you submit, the process runs through initial review, a term sheet, document collection, third-party reports, underwriting, and closing. With a complete package, the whole sequence can move in as little as two weeks.
You've submitted your application. Your documents are in. Now you're waiting, and wondering what's actually happening on the other end.
The commercial loan process can feel like a black box. You send things in and hope they come out funded. But understanding what's happening behind the scenes helps you be a better borrower and anticipate what comes next.
Here's what typically happens after you submit a bridge loan application.
Within the first day or two, someone reviews your submission to make sure they have what they need. They're checking whether the information is complete, whether the deal makes sense at first glance, and whether there are obvious issues?
If things look good, you'll likely get a term sheet, a preliminary outline of the loan terms the lender is willing to offer. This isn't a final commitment, but it shows they're interested and gives you something concrete to evaluate.
If there are questions or missing documents, you'll hear about them now. Respond quickly, deals lose momentum when files sit waiting for borrower information.
Once you've agreed to the term sheet, the lender orders an appraisal. This is usually the longest single item in the process.
The appraiser schedules an inspection, analyzes comparable sales and rental rates, and writes a report estimating the property's value. For commercial properties, this typically takes 2-3 weeks, sometimes longer for complex properties.
Depending on the property, the lender might also order environmental reports (Phase I), property condition assessments, or surveys. These can run in parallel with the appraisal.
This is also when title work begins. A title company examines the property's ownership history and identifies any liens, easements, or other issues that need to be resolved before closing.
While third-party reports are being prepared, the lender's underwriting team digs into your deal.
They're analyzing the property: current income and expenses, lease terms, market conditions, comparable properties. They want to understand whether the property can support the loan and what could go wrong.
They're analyzing you: your experience, your financial strength, your track record. Can you execute the business plan? Do you have reserves if something goes wrong?
They're analyzing the exit, and it comes down to three questions: how you are going to pay off this loan, whether the exit strategy is realistic, and what happens if things don't go according to plan?
Expect follow-up questions during this phase. Underwriters always have questions. The faster you respond, the faster they can finish their analysis.
When underwriting is complete and the appraisal comes in, the lender makes a final decision. If everything checks out, you get a loan commitment, a formal document outlining the approved terms and conditions.
The commitment will include conditions that need to be satisfied before closing. These might include: finalized title insurance, updated rent roll, verification of insurance, entity documentation, or resolution of any issues identified during due diligence.
Review the commitment carefully. Make sure you understand all the terms and conditions. If something doesn't match what you expected, ask about it now.
With the commitment in hand, everyone shifts to closing mode.
The lender's legal team prepares loan documents. The title company prepares closing documents and schedules the closing. You work on satisfying any remaining conditions.
You'll receive a closing disclosure showing the final numbers: loan amount, interest rate, fees, and costs. Review this carefully and ask about anything that doesn't look right.
The lender will also coordinate wire instructions for funding. Make sure you understand where money is coming from and where it's going.
On closing day, you sign the loan documents. This might happen at a title company, attorney's office, or sometimes remotely via mobile notary.
Once everything is signed and the lender confirms the documents are in order, they wire the funds to the title company. The title company disburses the money, paying off any existing loans, paying closing costs, and delivering your proceeds.
The deal is done. The property is yours (or refinanced), and your loan is now active.
Have questions about a deal in process, or ready to start a new one? We're here to help. Call 801-706-2802 or email info@bluridgefunding.com.
Dillan is Managing Partner at BluRidge Funding, where he leads investor relationships and capital operations. He founded Summit Home Loans in 2018 and has spent his career on the capital side of real estate finance, matching deals to the right funding sources. More about the team.
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