Today’s Church Lending Process

Real Estate Wealth Advisors president Patrick Dean reveals what to expect and how to prepare your religious organization for the lending process.
By: R.E. Wealth Advisors, LLC
 
BOCA RATON, Fla. - Aug. 23, 2013 - PRLog --  

STRINGENT CHURCH GUIDELINES
Given the complexities of many churches applying for loans and the number of church foreclosures continuing to rise, lenders have tightened the reins on lending to religious organizations. There is a need more than ever for sound church business management. Since 2006, the relationship between debt to income ratio, regular attendees and giving units has remained the core factor in determining the size of the congregation; not to mention, how much the bank can prudently lend.


It is the job of the lender to press the church for as accurate a number as possible, due to the fact that many churches don’t keep track of attrition. All religious organizations must identify and track the number of family giving units that give on a regular and significant basis. Besides, it’s a requirement of the lender. Now, I’m not talking about the Easter & Christmas giver. This is the dedicated individual the church can count on with measurable contributions year in and year out.

QUALIFYING YOUR MINISTRY
The lending approval process requirements for churches are a pretty unique one, as compared to other types of conventional lending. While the loan amounts are vastly different, lenders remain within predetermined financial parameters. These parameters are very narrow in range, but it’s necessary for continued healthy lending practices.

Based on the needed documentation by lenders, here are few of the church lending requirements for 2013:

o   Description of the Project
o   Completed Loan Application.
o   Most recent year to date Income & Expense Statement and Balance Sheet.
o   3 years of Income & Expense Statement and Balance Sheet.
o   Average Sunday Attendance, Membership & Family Giving Units Figures for the Past 3 Years
o   List of giving units/members.
o   The Pastor Bio & Brief History of Church
o   Detailed History of Capital Funds Campaign (Date of pledge, Length of Campaign, Amount Pledged, Amount Received YTD, etc.)

If accepted, the lender will issue the following:

o   Letter of Interest/Intent, better known as the LOI.
o   A good faith rate and fee range offer.
o   An appraisal to be done.

UNDERWRITING
Once the entire loan package is complete, the loan goes through several layers of underwriting reviews and often will be voted on by a board. After their approval is given, a term sheet is presented along with a commitment letter to the church for their acceptance. Upon acceptance, title work is ordered, and an expected close date is determined. The entire process usually takes 60 to 90 days from the day a complete loan package is submitted.

SOLUTION
Our company R.E. Wealth Advisors is an American church financing company providing religious organizations with a way to finance real estate purchases for acquisition of new properties, as well as refinancing existing debt. Within its footprint, R.E. Wealth Advisors can help facilitate loans ranging from $100,000 to $100,000,000.

Our Church Lender Directory goes beyond traditional banks, as we boast a great list of private investors. We understand the Christian Community. We can help with your church & ministry to fund challenging projects; such as, mission-sending organization, or pre-school; our ministry and church financing services are designed to meet your organizational needs.

Grant us the opportunity to pre-qualify your ministry and get a Funding Solutions Analysis and/or Lending Proposal for you from the appropriate lenders.

For more information on how R.E. Wealth Advisors, LLC can help your religious organization with funding please visit: www.chruch-loans-financing.com. Also, you can follow us on Twitter: @Real_EstateWA (https://twitter.com/Real_EstateWA), Linked-In (http://www.linkedin.com/company/real-estate-wealth-adviso...) and be sure to like us on Facebook (https://www.facebook.com/pages/RE-Wealth-Advisors/4660608...).
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Source:R.E. Wealth Advisors, LLC
Email:***@rewealthadvisors.com Email Verified
Tags:Lending, Church Lending, Financing, Religious Organizations
Industry:Financial, Loans
Location:Boca Raton - Florida - United States
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