Pre-Approval letter for commercial loans???

[Sean Grady]

I'm dealing with a "residential" real estate agent on a commercial property.  The agent keeps asking for a pre-approval letter and the deal is stalling out.  Is it common to provide a pre-approval letter from the lender on a commercial loan?

[Alex Bekeza]

@Sean Grady They're probably used to their standard home buying process on SFRs. However, sometimes I run into this same request. The issue is that most of these loans are so subject property based (rather than your income) that a pre approval drafted prior to a review of the properties financials is really worth less than the paper it's printed on. That being said, I often draft pre approval letters on these types of purchases as long as I have enough details on the deal to crunch a DSCR and proof of assets from the borrower.