Preparing for a Commercial Mortgage Loan
By: Ryan Attelle
Many business owners are finding the search for a commercial mortgage that is properly suited for there company to be difficult and frustrating. Most business owners have probably tried getting commercial mortgages from one of the many “main street lenders”. Some of these lenders have an appetite for lending, others do not, the trick for business owners is to sort out leaders who will meet their needs, and those who will not.
It is also very important for businesses to know how to package there application for a commercial mortgage. The importance of this can not be stressed enough. This will not only help improve a businesses chances for qualification but improve there chances that the lender will issue a mortgage that is most favorable to the business. In the end this will save a great deal of time and money.
A business seeking a commercial mortgage usually fall into one of two categories the first of which is known as owner occupier. A business that would fall into this category may for example make widgets and needs to move there factory to a larger facility. Another possibility for a business in this category may be one that has a current lender who is trying to drop them therefor calling for a refinance. The other category a business may fall into is a commercial investment mortgage. This is when a business is looking for a loan strictly for investment purposes. This investment could include a retail, a shop, a light industrial unit, doctors or dentist even HMO or house of multiple occupancy. It is important to know the difference so that when a business applies for the loan they can outline what they need and be very specific about what they are looking for.
Contrary to popular belief, in the current economic climate it is possible to fund up to 90% of the purchase price and the cost of works. Or it is even possible to fund 80% of the value of the property when vacant. The biggest benefit for businesses is that this allows them to recycle there working capital quickly so that they can go out and secure additional investment property. This is only possible if the business seeking the commercial loan has properly prepared them self’s by finding the best Leander for them and compiling to bullet proof application package. Loans are out there because lenders are lending its just a matter of businesses positioning them self accordingly so that they can get them.
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