Getting approved for
a commercial mortgage can be
challenging, but the process can be made easier by following certain tips.
a commercial mortgage can be
challenging, but the process can be made easier by following certain tips.
Before you go into an interview, it is considered a good
practice to find out as much as you can about your potential employers. Before
taking a test, it can help to know what sort of questions an instructor likes
to ask. Before taking a date to the movies, it is smart to know if she prefers
comedies over action movies or romantic flicks over horror shows.
practice to find out as much as you can about your potential employers. Before
taking a test, it can help to know what sort of questions an instructor likes
to ask. Before taking a date to the movies, it is smart to know if she prefers
comedies over action movies or romantic flicks over horror shows.
Just like job interviews, tests, and dates, the process of
getting a commercial mortgage
approved can go a lot smoother if you adhere to certain tips.
getting a commercial mortgage
approved can go a lot smoother if you adhere to certain tips.
Tips To Help You Get Your Commercial Mortgage Approved
• Location: Lenders
prefer to enter into relationships with local businesses so don’t bother
looking into any that are out of state or without an office in your
metropolitan area. This doesn’t mean you can’t get approved by someone out of
state, but you’ll get better terms from a local lender.
prefer to enter into relationships with local businesses so don’t bother
looking into any that are out of state or without an office in your
metropolitan area. This doesn’t mean you can’t get approved by someone out of
state, but you’ll get better terms from a local lender.
• Don’t go with the
first lender you see or talk to. There are a lot of potential lenders out
there, and they all want your business. Terms can vary widely from one lender
to the next, so you want to talk to a few and see who offers the best deal.
first lender you see or talk to. There are a lot of potential lenders out
there, and they all want your business. Terms can vary widely from one lender
to the next, so you want to talk to a few and see who offers the best deal.
• Be careful when
dealing with private lenders. If they are pushing you to pay for fees upfront
early in the process, there is a good chance they are crooks trying to run a
scam.
dealing with private lenders. If they are pushing you to pay for fees upfront
early in the process, there is a good chance they are crooks trying to run a
scam.
• Make sure you
know how long your lender takes to approve loans. You want to ensure you allow
enough time for it to get done before you need it. Expect it to take a while.
know how long your lender takes to approve loans. You want to ensure you allow
enough time for it to get done before you need it. Expect it to take a while.
• Only the lender
can order an appraisal. So if you are working with a mortgage broker, don’t be
talked into getting one.
can order an appraisal. So if you are working with a mortgage broker, don’t be
talked into getting one.
• If the lender
wants you to get an appraisal, get a term sheet first. It is not legally
binding, but it will give you an idea of what you are going to get before you
pay for anything.
wants you to get an appraisal, get a term sheet first. It is not legally
binding, but it will give you an idea of what you are going to get before you
pay for anything.
• If you are not
trying to get a loan through the bank you use, offer to switch your accounts to
their institution should your loan get approved.
trying to get a loan through the bank you use, offer to switch your accounts to
their institution should your loan get approved.
• Be aware of any
hidden costs your lender may charge before you even get the process started. No
sense in wasting time if it is going to cost you money just to apply for a
loan.
hidden costs your lender may charge before you even get the process started. No
sense in wasting time if it is going to cost you money just to apply for a
loan.
A Successful Approval Can Depend On Proper Documentation
No matter how many tips you follow or how many hoops you
jump through, you will have a hard time getting your commercial mortgage approved if you can’t provide the lender with
the appropriate documentation when asked.
jump through, you will have a hard time getting your commercial mortgage approved if you can’t provide the lender with
the appropriate documentation when asked.
At some point during the process, your lenders are going to
want to see certain documentation. Whatever it is, make sure you have it on
hand. One of the quickest ways to get turned down is to fail to provide
something requested. So get organized and have it ready.
want to see certain documentation. Whatever it is, make sure you have it on
hand. One of the quickest ways to get turned down is to fail to provide
something requested. So get organized and have it ready.
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
www.Level4Funding.com
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.
Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.