Every lender typically establishes unique lending criteria shaped by internal factors such as decision-making policies, corporate structure, and funding origins, as well as external factors such as prevailing real estate market conditions, economic fluctuations, and the characteristics and value of properties being considered for financing, among others.
When considering funding for your real estate project, it is common knowledge to undergo the process of being vetted by the lender. However, it is equally prudent to conduct due diligence on the lender before formally seeking financing. This step may even be taken before signing a purchase and sale agreement to gain insight into the lender’s expectations, thus mitigating the risk of being tied to a property that could prove challenging to finance.