Routine 60-day closing : Week 1, term-sheet acceptance, deposit , third-party orders. Weeks 2 to 4, third-party reports , title, survey. Weeks 3 to 5, credit committee approval. Weeks 4 to 7, lender-legal documents and borrower-legal review. Week 6 to 7, title exceptions cleared. Week 8, closing and funding.
What needs to happen each week
Week 1: term sheet signed, good-faith deposit funded, engagement letters with third-party providers, kick-off call with lender and borrower counsel. Order title commitment, survey (or bring forward existing), appraisal, environmental, PCA, and zoning.
Weeks 2 to 4: lender's underwriting team works through the package; Q&A from credit officer; sponsor responds quickly to all requests. Third parties deliver drafts: appraisal first, environmental and PCA next, zoning typically last.
Weeks 3 to 5: lender's credit committee reviews and approves. Commitment letter issued. Lender legal engaged.
Weeks 4 to 7: lender-legal drafts loan documents (note, mortgage, assignment of leases, recourse guaranty, environmental indemnity, SPE provisions). Borrower legal reviews and negotiates. Title exceptions worked through with title agent and borrower counsel.
Weeks 6 to 7: insurance certificates issued in lender-required form, SPE conversion completed (if not already), opinion of borrower counsel drafted.
Week 8: pre-closing call to confirm all conditions satisfied. Documents signed, funds wired, mortgage recorded, title insurance issued.
What slows the timeline: surprise title exceptions, environmental Phase I recommending Phase II, appraisal coming in low, lender credit committee meeting only every two weeks. Each adds 1 to 4 weeks.
Sources
- Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations · Mortgage Bankers Association · 2026-Q1
- Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS) · Board of Governors of the Federal Reserve System · 2026-Q1