Acquire a Commercial Lender Mortgage | What You Need to Acquire a Commercial Mortgage
As soon as you find a property worthy of your investment, you’ll want to acquire a commercial lender mortgage. It involves finding the right lender, providing them with every single detail that they need to move your loan forward, shopping around and finding the best rates possible.
Because shopping around takes time, it’s best if you have as much information as possible on hand before you start to look for lenders. They are going to request a significant amount of information from you before they can move forward, so having that information at the ready will improve your ability to quickly shop around.
Examples of Documents to Acquire a Commercial Lender Mortgage
- Rent Roll/Lease Schedule – You need to be able to show that those that are currently living in or working in the property are covering the costs of rent, and show that the property is occupied.
- Profit and Loss Statements – Since the property has already been in development, you’ll also want to show the property’s profit and loss statements for the last 3 to 5 years.
- Credit Report/Taxes – Your individual finances and credit risk play a significant role in securing a loan, so keeping those records on hand is important.
- Purchase Contract – You will want to show that the purchase is a guarantee with a purchase contract. Many lenders will not provide funding to properties not yet guaranteed.
- Lease Agreements – For those that are leasing the property, you’ll want to show that lease agreements are in place. This will help you guarantee income/revenue.
- Evaluations – You may also want to show property evaluations, and anything that proves that you’re getting the property at or below market value. Most banks will do this legwork on their own, but it’s still useful to have those evaluations on hand for the discussions.
Remember that lenders are looking to see that you can prove you’re going to be profiting from the property and able to pay back the loan on time. More documentations is always better, because the size of these loans is already a significant risk for lenders, and anything that proves that the property purchase is less of a risk is valuable.
If you’re ready to acquire a commercial lender mortgage, sign up with CRE Lender today. We are the number one choice for connecting borrowers to lenders and helping you get the best rates. Find out more by signing up now.
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