Refinancing Commercial Loan: Business Plans and Other Considerations
At times it can be difficult to refinance with commercial lenders. Most lenders are aware of the risks in funding any commercial mortgage, and so they are loathe to take on those risks themselves when someone has already funded the loan.
But despite those difficulties, it is possible to refinance your mortgage with the right connections and the right paperwork. At CRE Lender, our goals are your goals. Our role here is to connect you with lenders that are there to help you refinance your commercial loan, and when you sign up with our company, you’ll be able to get in touch with lenders that are perfect for your needs.
What You’ll Need to Refinance
Even though you already have a loan, refinancing a commercial loan will require much of the same information. Luckily, most of the previous information you used was a guess. Now you have experience, and that means new documents and new proof that you’re a low risk investment. For example:
- Updated Business Plan – When you are refinancing a commercial loan, business plans will still play a role. But now, you have the opportunity to use the experience you’ve gained to create a more accurate business plan. You’ve learned from the successes you’ve already had and you can use harder numbers to prove profitability.
- Current Property Value – LTV still plays a significant role in refinancing, and your property has likely changed in value since you first purchased it. Indeed, it’s crucial you know this in advance because if you’re refinancing soon after you’ve made your loan, it’s possible your LTV has gone up, not down, and then refinancing may not be to your advantage. You may actually have to pay more on your loan before you can refinance it.
- Credit Score – Taking out the initial loan and going into that much debt is going to immediately affect your credit score. Make sure you’ve built it back up again first, otherwise your lenders may not be as confident in your risk profile and may not offer you the lowest rate possible.
Remember, you should only refinance a commercial loan once. That’s why you need to make it count. Prepare everything you can well in advance and bring the right information directly to lenders and you’ll be more likely to get an affordable loan.
If you’re ready – or almost ready – to get started, sign up with CRE Lender today. Our company will hold your hand through the process and connect you with those that will get you the best rates on their loans. Before you’ve chosen to go with a lender, make sure you sign up with CRE Lender.
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