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Commercial Real Estate Loan Application Timeline
A stage-by-stage view of how a commercial real estate loan moves from application through closing—plus the factors that can impact timing.
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Stage 1: Application & Qualification
You submit your application through our online form. Our team reviews the submission and issues a preliminary soft quote outlining potential loan terms.
Typical Timeline: 24 hours
You’ll receive: a soft quote outlining preliminary loan terms and required documents for the next stage. This is not a commitment to lend—it's our initial assessment to help you understand what financing might look like
Starter package: last year’s tax return/financials + trailing 12-month statements
Stage 1: Application & Qualification
You submit your application through our online form. Our team reviews the submission and issues a preliminary soft quote outlining potential loan terms.
Typical Timeline: 24 hours
You’ll receive: a soft quote outlining preliminary loan terms and required documents for the next stage. This is not a commitment to lend—it's our initial assessment to help you understand what financing might look like
Starter package: last year’s tax return/financials + trailing 12-month statements
Stage 2: Prescreen
We review all submitted documents, confirm loan structure and terms, and prepare a prescreen analysis to ensure the deal meets our lending criteria.
Typical Timeline: ~2 business days after receiving all necessary documents
Key deal details to confirm fit: overview + borrower/property financials (as applicable)
Stage 3: Letter of Intent (LOI)
Once prescreen is complete, we prepare a LOI outlining proposed loan terms, including rate, term, loan amount, fees, and conditions.
Typical Timeline: Issued after successful prescreen
What this means: The LOI is our formal loan proposal. Signing it and submitting the Good Faith Deposit moves the loan into underwriting. This is still not a final commitment to lend—that comes after underwriting and approval.
Stage 3: Letter of Intent (LOI)
Once prescreen is complete, we prepare a LOI outlining proposed loan terms, including rate, term, loan amount, fees, and conditions.
Typical Timeline: Issued after successful prescreen
What this means: The LOI is our formal loan proposal. Signing it and submitting the Good Faith Deposit moves the loan into underwriting. This is still not a final commitment to lend—that comes after underwriting and approval.
Stage 4: Underwriting
Our Credit team conducts detailed analysis of the property, financials, and loan structure. This includes ordering third-party reports (appraisal, environmental studies, engineering assessments if needed) and preparing a comprehensive Credit Approval Memo (CAM).
Typical timeline if waiting: 4-5 weeks if waiting on appraisal and third-party reports
Typical timeline if all documents are ready: ~1 week
Additional documents (as needed): third-party reports, entity/ownership docs, and property condition items
Stage 5: Approval
The Credit Approval Memo is reviewed and approved by AVANA's Chief Credit Officer. For certain loans involving participation partners or credit unions, their approval is also obtained.e a LOI outlining proposed loan terms, including rate, term, loan amount, fees, and conditions.
Internal typical timeline: ~2 business days
If participation or credit union approval needed: add ~2 weeks
What you'll receive: Official approval notification and next steps for closing.
Stage 5: Approval
Once prescreen is complete, we preparThe Credit Approval Memo is reviewed and approved by AVANA's Chief Credit Officer. For certain loans involving participation partners or credit unions, their approval is also obtained.e a LOI outlining proposed loan terms, including rate, term, loan amount, fees, and conditions.
Internal typical timeline: ~2 business days
If participation or credit union approval needed: add ~2 weeks
What you'll receive: Official approval notification and next steps for closing.
Stage 6: Closing & Funding
Legal counsel prepares loan documents, escrow is opened, wire instructions are coordinated, and loan funds are released.
Typical timeline: ~1 week after approval
May be requested for closing: final insurance, payoff details (refinances), and required entity documentation
Stage 7: Servicing
The loan is now active. Regular payments are made, and AVANA handles ongoing loan administration.
Ongoing activities: general loan servicing support, payment processing, annual financial reporting requirements
Stage 7: Servicing
The loan is now active. Regular payments are made, and AVANA handles ongoing loan administration.
Ongoing activities: general loan servicing support, payment processing, annual financial reporting requirements
Frequently asked questions
Find answers to common questions
What’s a “soft quote” and is it a loan commitment?
A soft quote is an initial view of potential terms based on application info; it’s not a commitment to lend, which comes after underwriting and formal approval.
How long does the entire process take from application to funding?
Most loans close in 6-10 weeks, depending on complexity, document readiness, and third-party report turnaround; participation or credit union approval may add time.
What documents will I need to provide?
Common items include financial statements (last 2 years), tax returns, rent rolls/operating statements, property details and existing loan docs, personal financial statement/background; for broker submissions: offering memo and client financial statements.
Why do third-party reports take so long?
Appraisals typically take 2-4 weeks, and environmental reports can take 1 3 weeks; ordering early and enabling quick property access can help.
What happens during underwriting?
The Credit team analyzes the property, borrower financials, and structure; orders third-party reports; and prepares a Credit Approval Memo—this stage typically takes 4–5 weeks.
What can I do to speed up underwriting once the process starts?
Prepare documentation upfront, respond to your BDO within 24-48 hours, keep one primary point of contact, and proactively flag potential issues (title/liens, zoning, environmental, compliance) or deal changes.
What if my loan needs participation or credit union approval?
This can add about 2 weeks after internal approval; the team will flag early if it applies.
Who is my main point of contact during the process?
Your Business Development Officer (BDO) is the primary contact from application through funding; after funding, Servicing becomes the main contact for administration.
Apply for a CRE Loan
Fill a 5-minute online form. Our team will contact you afterwards