How To Shop For The Best Mortgage Rate

You may need a commercial or industrial mortgage if you need a loan to help you purchase a piece of land or property for the intention of doing business.

A commercial mortgage is similar to a residential mortgage  in that the lender uses the property as collateral to secure the loan. You can apply for this loan in the form of a first, second, or even third mortgage. There are some instances when the investor may be required to use multiple properties to secure the loan, as a way to account for any limitations to the available equity or your capacity to qualify for the full loan amount applied for.

Commercial mortgage applications contain significantly more documentation than their residential counterparts. The typical mortgage documentation package contains information relevant to a lender in making a mortgage financing decision regarding a specific property or project.

The range of materials varies significantly by property type, project scope, lender requirements, and the specific investor, but may include:

  • Site and property information along with relevant statistics, sketches, valuation estimates, and associated supporting documentation
  • Fully completed mortgage application, appraisal, verification of income/salaries, credit check, verification of resources and other financial commitments, and the agreement of purchase and sale
  • In the case of resale properties, the lender will usually insist on financial statements for at least the past three to five years, along with a review of existing leases on the property
  • For new construction, pro forma income statements, letters of commitment from prospective tenants (or suitable analysis identifying potential for lessees), details concerning principals involved in the project, feasibility studies, and applicable construction information (if relevant) are normally requested

We will help you to understand your needs and assess your current situation.  We will advise you on search  for the most suitable lender that will offer a competitive quote with the rate and best possible mortgage terms to fund your business mortgage.

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