Apartment Refinance Checklist

What this checklist covers

This is the document list for refinancing an existing apartment building with 5 or more units, organized in the order lenders ask for things. It covers agency, bank, HUD and life company refinances; any given lender will skip some items and may add a few of its own. Each item says who usually provides it and why the lender wants it, so you know what to chase and from whom.

Most refinance delays come from the borrower side: a rent roll that does not tie to the T-12, an operating agreement nobody can find, a payoff quote requested too late. Working through the list before you apply removes most of them.

Your refinance checklist

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Before you call lenders

Copy of your current note and loan agreement, with the maturity date markedEvery refinance date works back from maturity.youPrepayment terms: lockout end, penalty type and open-window start dateThe exit cost decides whether refinancing now pays.youOne line on the goal: payoff, cash out, lower payment, remove recourse, or exit a bridgeLenders structure the loan around what it has to do.youTarget loan amount, term, fixed or floating, and prepayment preferenceQuotes are only comparable when they price the same request.youYour estimate of value with recent comparable salesLeverage limits are applied to value, so a realistic number avoids surprises at appraisal.youA sizing check at today's rates using lender-adjusted NOIIt shows whether the deal covers the payoff before anyone orders reports.you

Property financials

Trailing twelve-month operating statement (T-12), month by monthLenders underwrite NOI from actual trailing results.property managerOperating statements for the prior two to three calendar yearsThey show the trend behind the trailing twelve months.property managerCurrent certified rent roll with unit, type, rent, lease dates, deposits and concessionsIt is the lender's source for occupancy, in-place rent and lease rollover.property managerDelinquency and aged receivables reportLenders size on rent collected, not rent billed.property managerOperating account bank statements for recent monthsDeposits verify that reported collections are real.youCurrent-year operating budgetIt explains expected changes in expenses the lender will underwrite.property managerMost recent property tax bills and any pending appealTaxes are usually the largest expense lenders trend forward.youCurrent insurance declarations pages and premium invoicesInsurance cost and coverage are underwritten and must meet lender requirements.youUtility bills and any ratio utility billing income detailThey support utility expense and reimbursement income lines.property managerOther income detail: parking, laundry, storage, feesLenders only count other income that is recurring and documented.property managerCapital expenditure history for recent yearsIt shows the condition story behind the property condition report.you

Property information

Unit mix: count, bedrooms, square footage by unit typeRents and value are compared per unit and per square foot.property managerCurrent exterior, interior and amenity photosLenders screen condition before committing to reports.youList of renovated units, scope and costIt supports premium rents and lower future capital needs.youStandard lease form and a sample of executed leasesLenders confirm lease terms match the rent roll.property managerManagement agreement and major service contractsThe lender reviews fees and termination rights and may require a subordination.youAny regulatory agreement, rent restriction or housing assistance contractRestrictions change underwritten rents and program eligibility.youOpen code violations, permits and certificates of occupancyOpen violations can hold up closing or require escrows.youPrior appraisal, property condition and environmental reportsThey help the lender scope new reports and spot issues early.you

Sponsor and borrowing entity

Ownership organizational chart showing every owner and percentageLenders identify key principals and anyone needing background checks.youBorrowing entity formation documents and operating agreementThe lender confirms who can sign and whether the entity meets single-purpose rules.attorneyCertificate of good standing for the borrowing entityIt confirms the entity legally exists and can borrow.attorneyPersonal financial statement for each key principal and guarantorLenders test net worth and liquidity against the loan.youSchedule of real estate owned with debt on each propertyIt shows experience and contingent liabilities.youRecent brokerage and bank statements proving liquidityStated liquidity has to be verified.youRecent tax returns for principals and the entity, if requestedSome lenders, banks especially, review returns as part of credit.youSponsor and management company resumeOperating experience affects eligibility and pricing.youSigned authorizations for credit and background checksLenders must run checks on key principals.you

Current loan

Most recent mortgage statement and servicer contactIt identifies who issues the payoff and the current balance.youWritten payoff quote for your target closing date, including any prepayment premiumThe new loan has to cover the actual payoff.youPrepayment notice sent by the deadline in your noteMany notes require advance written notice before a payoff.youCurrent escrow and reserve balances held by the servicerBalances are often refunded after payoff and affect closing cash.youDetails of any second mortgage, mezzanine loan or preferred equityAll existing debt must be paid off or approved by the new lender.you

Third-party reports (lender-ordered)

AppraisalIt sets the value that leverage limits are applied to.lender ordersProperty condition report or inspectionIt sizes repair escrows and replacement reserves.lender ordersPhase I environmental site assessment or environmental screeningEnvironmental problems can make a property unfinanceable.lender ordersZoning report or letterIt confirms the building can be rebuilt as-is after a loss.lender ordersSeismic report where required by locationEarthquake risk can require added insurance or limit loan size.lender ordersSite access, unit access list and a contact for inspectorsReports stall when inspectors cannot get into units.property manager

Closing

Title commitment and surveyThe lender needs a first lien and a clear picture of the boundaries.lender ordersInsurance certificates naming the new lenderCoverage must meet the new lender's requirements on the day of funding.youAttorney review of the loan agreement, note and guarantyYou should understand carve-outs and covenants before signing.attorneyTenant estoppels or commercial leases, if the building has retailCommercial income needs separate verification.property managerClosing statement and wire for any cash due at closingEscrows, reserves and costs are funded at closing.youPost-closing calendar: reporting dates, escrow analysis, insurance renewalsMissed reporting or insurance lapses can trigger defaults.you

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How to use it

1. Start with "Before you call lenders." These items take an afternoon and decide whether the rest is worth doing. If the sizing check shows the loan will not cover your payoff, read when it won't size before you collect anything else.
2. Send your property manager the financials and property sections now. They hold most of those documents, and month-by-month statements take time to produce.
3. Gather the sponsor and entity items yourself. They do not change much from deal to deal; keep a current set so the next refinance is faster.
4. Request the payoff quote when you have a target date, and check your note for a prepayment notice deadline.
5. Leave third-party reports to the lender. The lender orders the appraisal, property condition and environmental reports after you sign an application. Your job is access to the property and units.
6. Use closing items to plan cash. Escrows, reserves and closing costs are funded at closing.

Check items off as you go. Your progress saves in this browser only; nothing is uploaded. Print it or download it as a PDF to share with your property manager or attorney.

Check the numbers before you send them

Two documents carry most of the underwriting: the rent roll and the T-12. Before you send either, run them through our tools so you see what the lender will see:

• The rent roll analyzer reads a pasted or uploaded rent roll in your browser and flags occupancy, loss-to-lease, concessions, delinquency, month-to-month share and lease expirations.
• The T-12 underwriting calculator restates your NOI the way a lender does and shows what the difference does to loan size.

If the rent roll and T-12 disagree on occupancy or collections, fix or explain the gap before a lender finds it.

Notes for specific situations

• Agency loans lend to a single-purpose entity. If your building sits in an LLC with other assets, plan a new entity with your attorney early. See refinancing a bank loan into agency debt.
• Affordable or rent-restricted buildings need the regulatory agreement or assistance contract up front; it changes the rents a lender can underwrite.
• Mixed-use buildings need the commercial leases and usually tenant estoppels.
• Bridge loan payoffs need the exit fee and any extension terms in the payoff figure. See refinancing a bridge loan.

For the order of events and how long each takes, see the refinance timeline; for program limits, see refinance requirements.

Take it offline

Prefer a spreadsheet you can save, send or change? The same math, with formulas you can see.

Frequently asked questions

What documents do I need to refinance an apartment building?

Expect to provide a trailing twelve-month operating statement, a current rent roll, prior years' operating statements, property tax and insurance bills, the entity's formation documents and operating agreement, an ownership chart, a personal financial statement and schedule of real estate owned for each key principal, proof of liquidity, and your current loan statement and payoff quote. The lender orders the appraisal and other third-party reports.

Who orders the appraisal on an apartment refinance?

The lender does. On agency, HUD, bank and life company loans, the lender engages the appraiser and other third-party report providers, typically after you sign an application and pay deposits toward their cost. You provide access to the property and units, plus the financials and property information the appraiser and inspector request. An appraisal you ordered yourself is usually not accepted for underwriting.

How recent does my rent roll need to be?

Lenders want a current rent roll, typically dated within the last month or so, and will ask for an updated one before closing. Requirements vary by lender. Make sure it ties to your T-12: occupancy and rent on the rent roll should be consistent with recent months of collections, or you should have a written explanation for the difference.

What is a schedule of real estate owned?

A schedule of real estate owned lists every property you or your entities own, with its value, debt, lender, maturity and cash flow. Lenders use it to judge your experience and to see contingent liabilities, such as guarantees on other loans, that could compete with this property for your attention or cash. Keep a current one so each refinance starts faster.

Does the checklist save my progress?

Yes, in your browser only. Checked items are stored locally on the device you are using and are not uploaded or shared. If you clear your browser data or switch devices, the checklist resets. Print it or download it as a PDF to keep a copy or share it with your property manager or attorney.

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• T-12 UnderwritingEnter your apartment T-12 and see the NOI a lender will underwrite after vacancy, management, reserves and expense…