The review a lender runs before funding a commercial loan: third-party reports, title, borrower financials, and property documents, checked against the commitment.
The longer version
Due diligence is where the lender verifies that the deal it approved is the deal it is funding. The property side covers the appraisal, environmental and property condition reports, title, and survey. The borrower side covers organizational documents, financial statements, rent rolls, and insurance.
Diligence items feed the closing checklist. A diligence list that lives apart from the closing list gets reviewed twice and chased twice, which is where deals lose days.
In Prodeal
Borrowers deliver diligence items through an upload link with no login, so documents arrive named and filed. Role-based access keeps each party inside their own lane while the file assembles.
Common questions
- What does lender due diligence include?
- Third-party reports such as the appraisal, environmental and property condition, title and survey, the borrower and guarantor financials and organization, the leases and rent roll, insurance, and zoning, each reviewed against the loan's terms.
- How long does lender due diligence take?
- Usually several weeks, set by the longest third-party report rather than the lender's review. Appraisals and surveys are the common pacing items, which is why they are ordered first.
- What is the difference between lender and buyer due diligence?
- A buyer asks whether the property is worth the price. A lender asks whether the property and borrower will repay the loan and whether the collateral is clean. They overlap heavily but the questions differ.
- How long does a commercial loan take to close?Where diligence sits in the calendar.
- The commercial loan closing checklistHow diligence items become checklist lines.
- Prodeal vs DatasiteDiligence in a data room versus on a checklist.
- Due diligence softwareThe request list, the owners and the dates in one place.