Sources: senior loan , mezzanine debt (if any), borrower equity, deposit credit. Uses: purchase price (or refi payoff), origination fee , third-party costs, lender legal, title and survey, transfer taxes, prorations, upfront reserves , cap -ex budget, working capital. Sources must equal uses to the dollar.
Lines that lenders scrutinize
Purchase price: ties to the executed PSA. Any seller credits, post-closing escrows, or holdbacks reduce the effective price and should be shown net.
Origination fee: typically 0.5% to 1.0% on bridge, 0% to 0.50% on agency, 0.25% to 0.75% on perm. State the fee in dollars and basis points.
Third-party costs: appraisal, environmental Phase I, property condition assessment, zoning report, legal opinion. Itemize where possible; lenders compare against their own panel cost estimates.
Lender legal: typically capped at term sheet, push for a defined cap (often $25K to $75K depending on deal complexity). Open-ended lender legal is a frequent cost surprise.
Title and survey: existing survey may be reusable on refi if dated within 5 to 10 years; new survey is required on acquisition.
Transfer taxes and recording: state and local, varies materially by jurisdiction. New York City, Washington DC, Philadelphia, and certain California counties have particularly high transfer-tax exposure.
Reserves at closing: real-estate tax, insurance, replacement reserve, TI/LC. State both upfront amount and ongoing monthly funding.
Cap-ex budget: itemized by line item with timing. Lenders want to see the value-add plan funded.
Working capital: 1 to 6 months of operating cash flow held separately from reserves. Lenders look for working capital on bridge and value-add deals especially.
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