Borrowers will be faced with a large variety of available loans. In the
beginning, a deposit receipt needs to be provided which represents the terms of
purchase of a commercial property. It will list the amount to be financed,
estimated interest rates and terms of the loan.
A loan is applied for by completing a loan application with a mortgage broker
or loan company. There will be a non-refundable loan application fee, usually
around $200 to $400. A commercial mortgage broker represents several lenders,
and will submit the application to a lender he believes most appropriate for the
situation.
The best way to get a commercial mortgage is to use the services of a specialist independent mortgage broker, who can help you get a good package to suit your needs whatever your circumstances. Even if your credit isn t great, it doesn
t mean that you won t qualify for a commercial mortgage. Having a broker to
represent you will really strengthen your case.
They have access to a wide range of lenders and understand their criteria for
lending, as well as your specific needs. They can therefore undertake a targeted
search, increasing your chances of finding a suitable loan. In fact, the broker
may even be able to obtain several different options from various interested
lenders, which provides the scope to negotiate a fantastic deal for you.
Representatives for banks and other lending institutions usually represent
only one institution, and will submit the application to that institution. There
are advantages to each type. The lender will verify the statements of assets,
liabilities, employment, and salary. The subject property will be appraised.
The loan approval takes about 20 to 30 days on an average. The actual time depends upon how quickly the lender can process the application, get the appraisal, and obtain verification of employment and bank balances.
A commercial loan eases the burden of paying huge sums of money at a single instance. Finance options spread the paymet towards the loan amount over a period of 25 to 30 years. New businesses are increasingly opting for commercial real estate loans.
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