7 things Every church MUST know Before Applying for a Loan

  • Approximate Value of your property
  • If working on a project, what is the total cost to complete the project? Allow 10% for cost over runs.
  • When going from renting to purchasing, what will the difference be in payment? - Avoid payment shocks.
  • Is your church currently in an ACTIVE status with the Secretary of State?
  • Do you have sufficient reserves for the loan you are applying for - This is typically 6 months worth of mortgage payments in the bank.
  • Is your insurance current - Avoid having to pay unforeseen high annual premiums at closing?
  • Is your board on board - Whether your bylaws call for just the finance committee, the entire board or the whole congregation, make sure every one is on board with the senior leadership's vision?