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First National strives to make our loan process as streamlined and as efficient as possible to meet the financing needs of qualified borrowers. Because we conduct our own due diligence and make our own loan decisions, we can execute creative programs quickly.
First National’s loan process begins with establishing lending parameters. This involves determining the criteria and conditions that applicants must meet to qualify for a loan. These parameters may include credit scores, financial stability, business history, and the purpose of the loan. Lending parameters play a crucial role in shaping the eligibility criteria for potential borrowers.
Once potential borrowers identify their financing needs, they can initiate the process by contacting a First National Banker. This typically involves providing basic information about the loan purpose, desired amount, and relevant financial details. The quote gives borrowers an initial understanding of the terms and conditions that may apply to their loan, helping them make informed decisions.
After receiving loan parameters, borrowers undergo a due diligence process. First National internally conducts a thorough examination of the applicant’s financial history, creditworthiness, and other relevant factors including inspection of the facility or location. This step is essential for assessing the risk associated with the loan and ensuring that the borrower can meet their repayment obligations. Due diligence may involve verifying income statements, tax returns, and other financial documentation.
Upon successful completion of due diligence, First National may issue a Letter of Intent (LOI). The LOI outlines the terms and conditions under which the loan is structured to close. It serves as an agreement between First National and the borrower, expressing the lender’s commitment to proceed with the transaction. The LOI is a legally binding agreement and provides the framework for the upcoming stages of the loan process.
Once the LOI is accepted, the formal underwriting process continues to closing. Borrowers are required to submit comprehensive documentation, including but not limited to financial statements, business plans, and legal documents. First National’s underwriting team thoroughly reviews this information to assess the borrower’s creditworthiness, the viability of the proposed project, and overall risk. The final underwriting process aims to ensure that the loan aligns with the lender’s risk tolerance and regulatory requirements and confirms the Borrower representations.
Upon successful completion of the final underwriting process, the loan is presented to the Committee for final approval. Once approved, the parties proceed to the closing phase, where legal documents are executed, and the funds are disbursed. Borrowers are then responsible for adhering to the agreed-upon repayment schedule, and First National monitors the loan throughout its term.
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First National’s comprehensive loan process is designed to be a streamlined process that evaluates the financial viability of potential borrowers and mitigates risks associated with lending, providing a structured and transparent approach to meeting the financing needs of businesses.
