World Executives Digest | Requirements to Fulfill When Applying for Church Loans | A thriving church is an instant giveaway of a healthy community. An increase in the congregation results in overcrowded spaces of worship. This is when the church leadership often feels the need to expand its facilities to accommodate the growing numbers. New construction or even revamping the existing one is an expensive proposition.
Church loans, in the form of either short-term or long-term mortgages, come in handy for this very purpose. The trust factor is integral to all loan agreements and must be established at the very outset. Lending institutions require the borrower to provide their detailed information and submit essential documents as corresponding proof, before granting them the loan.
The primary requirements you as a borrower will need to fulfill while applying for loans include:
Complete a Detailed Application Form
An application form will require you to share inputs about the brief history of your church, the purpose of taking the loan, and a projected expense amount. You will also need to provide a description of your existing facilities and disclose whether your church has any prior debt or construction experience.
Submit Integral Documents
Submitting your church’s financial statements from the most recent going back to the last three, if not five years, is a mandatory prerequisite. An income and expense statement less than two months old, a copy of your church property survey and current market appraisal of your property, back your case further. To find a surveyor you can start a google search for a “land surveyor near me” and they can help you entirely through the survey process.
Besides, a duly signed corporate resolution permitting proceeding with the loan amount along with a copy of your church’s constitution and bylaws may also be sought. Compiling a comprehensive portfolio of your church’s assets is a worthwhile exercise as presenting it may seal the deal for you.
A lender is a rank outsider and will appreciate an in-depth understanding of the current goings-on in your church. Sharing a list of your registered members who regularly contribute towards church support and demonstrating a visible growth pattern in your weekly church service attendance, give valuable insight. Describing your ministry enables the lender to comprehend the purpose of your mission and your growth prospects.
Share with the lender the initiatives you have taken to reach your target audience and strategies in place to attract more worshippers. You must have a clear vision of how you intend to use the church loans for remodeling structure or new facility once it comes up. Make it a point to communicate the same with your lender as also your future staffing plans.
Provide a Title Search
A title is indicative of who owns the rights on a particular property. Public records are checked to establish these very rights. From a title search, you can confirm the history of ownership as regards the said property and whether there are any outstanding dues by way of taxes. Besides, should that piece of property be entangled in any legal complications, the same is also highlighted herein.
The smart thing to do when you are opting to take a loan is to get all your church records in order. Be transparent with your lender to win their confidence.