Commercial mortgage loans are the loans that make it possible for business owners and their investors to receive the funding to achieve their goals. It is difficult to create ways to overcome the financial bumps that come with starting a business unless of course you have the funds to put up in the beginning.
Commercial Mortgage Loan
A commercial mortgage loan is a type of loan that has been created for the purchase of real estate. The use of the purchase of real estate will be to produce an income. Many times the real estate will be used to build new office buildings, hotels or other establishments. They can also be used to buy existing business buildings or to develop properties for rental purposes.
It is simple to apply for a commercial mortgage loan, however getting approved can be the difficult part. If you have a good business or a good personal credit rating a lender will have a positive attitude towards you. You should have a business plan prepared or proof that you existing business is a profitable and stable business with a positive debt to income ratio. You need to demonstrate that there is enough cash available in your business to cover the monthly payments of the loan.
When applying for a standard commercial mortgage it will be required to include your personal financial information as well. This should include personal assets, personal tax returns for the past several years and details regarding any collateral you are going to use to secure the loan.
Before the final approval is given you may be given a pre approval. A pre approval does not give you a final approval but will give you and the lender a basic idea of where you stand in terms of credit. To receive the final approval the process may take many days if not weeks or months. It will all depend on how quickly you can get the needed information gathered and turned into the lender.
The Key to Success
To get approved for a commercial mortgage loan and get it done quickly is to study the entire process and know what is expected of you and what is needed from you. Be sure to have all of the necessary documents ready with the information that the lending company will ask for. Making copies of the documents such as tax returns, a business plan or any other documents that you think will be important will be a big help when the process is started. If there will be collateral involved such as land or another property be sure to have the deed with you. If available an appraisal would be a good document to have ready also. There may be expenses involved such as closing costs. Be sure to be prepared for these costs so they do not come as a large surprise to you during the process.
Ask For Us Help
If you have any questions at any time throughout the mortgage lending process are sure to ask for advice. Lenders are more than willing to answer any questions that you may have about what is needed or the process itself.