Prepare for your church loan
What can you do to get ready for church lending? If you are moving toward a building, expansion or purchase it will pay for you to prepare for a church loan before you are ready to apply. Complete the following steps to make sure you are ready.
1. Financials -- Three years financial statements presented in generally accepted accounting practice or often referred to as GAAP, and a current year to date financial statement.
2. Appraisal --A current market appraisal of your property.
3. Resolution-- A corporate resolution authorizing the borrowed amount, and authorized signatures to sign the loan.
4. Constitution-- Copy of a current constitution and bylaws.
5. Title Search-- Run a current title search to be sure there are no liens or encumbrances.
6. Survey-- A current survey of the property.
When you don’t prepare—it will cost your church time and money. Construction delays, difficulty in locking in a rate and unexpected costs may result from lack of preparation. Since taking out a church loan is a major financial event in the life of the church, it pays to prepare.
Proverbs 21:5 The plans of the diligent lead to profit as surely as haste leads to poverty (NIV)