What Documents Are Required For Church Financing?

Sometimes church financing can be complicated. At BCLC, we try to simplify things. The abbreviated list below outlines some of the typical documents needed for the loan approval and loan closing process, along with loan closing cost estimates:

1. Loan Approval Process

To begin the loan approval process, read through the Church Loan Requirements and send BCLC a completed loan application and documentation verifying that your church is incorporated. During the loan approval process, your church may be asked to provide some additional information, such as:

  • Current and forecasted budget
  • Additional financial statements
  • Pledge receipt reports (if applicable)
  • Construction and renovation budgets
  • Article and bylaws of the church
  • Missions giving report
  • Lay leadership structure
  • Miscellaneous other information.

2. Loan Closing Process

After your loan request has been approved, the loan closing process will start with the selection of a title company. The major loan closing items that the title company will need include:

  • An executed real estate contract
  • A title policy
  • A survey
  • An appraisal

Some of the documents to be signed at closing will include the mortgage loan note, a deed of trust, and a borrowing resolution. Construction loans may require additional information.

3. Loan Closing Cost Estimates

BCLC Church Lending does not charge an origination fee or any closing expenses, but there are some closing costs that your church will need to pay. Title company expenses typically range from $1,000 to 1% of the loan amount. A certified surveyor will usually charge between $1,250 and $3,500 depending on local competition. A certified appraiser will charge somewhere between $1,500 and $3,000. Finally, some states will require taxes to be paid.

Total processing time for the loan approval process and loan closing process should be approximately 4-6 weeks from the time the church provides the necessary information.

If you have any questions feel free to contact BCLC at (844) 273-7713.