Based in Montvale, New Jersey, Wanda Tineo has a strong background in the real estate and insurance sectors. Among Wanda Tineo’s areas of extensive knowledge is the underwriting of commercial loans toward the purchase of real property.
Prior to the formal start of the credit approval and underwriting process, the lender and borrower often sit down and have a preliminary meeting that centers on current interest rates and case specific factors that will impact the chances of the loan being closed.
One major area of focus of the lender is net operating income (NOI), or the total income amount collected from investment properties, after vacancy losses and operating expenses are factored in, This provides an estimate of the returns on investment that can be realized, and whether the loan is feasible.
Discussions often center on deciding on an appropriate NOI, with criterion such as debt service coverage ratio and loan-to-value ratio used to determine the level of lending risk and terms to be offered.At this point documents such as real estate proforma and rent roll may be evaluated internally, with a term sheet drawn up that allows the underwriting process to proceed.
