Commercial Bridge Loan Process (Step-by-Step)
The commercial bridge loan process is designed for speed and efficiency. Nationwide lenders use streamlined underwriting to close quickly while maintaining strong risk controls. Here is what to expect from submission to funding.
Step 1: Initial Deal Submission
The borrower provides the property address, purchase contract or payoff statement, current rent roll, trailing 12-month financials, property photos, and a written business plan. Most lenders have a one-page deal intake form.
Step 2: Term Sheet (24–48 Hours)
The lender issues a term sheet outlining the proposed loan amount, interest rate, term length, leverage, origination fees, and estimated closing timeline. This is non-binding but reflects the lender’s intent.
Step 3: Underwriting (3–7 Days)
The lender reviews the asset condition, market fundamentals, borrower experience, renovation budget, and exit strategy viability. Additional documentation may be requested during this phase.
Step 4: Third-Party Reports
Standard third-party reports typically include an appraisal, Phase I environmental assessment, and a property condition report (PCR) if needed. These are ordered by the lender and paid for by the borrower.
Step 5: Legal and Closing
The lender prepares loan documents, reviews entity and organizational documents, and issues closing instructions. The borrower signs, funds are wired, and the loan closes.
Most commercial bridge loans close within 14–21 days from term sheet execution, though some deals close faster when documentation is ready.