Commercial Mortgage Basics

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Interested in a commercial mortgage? If, so it never hurts to make sure you know the basics.

You might be surprised how many people consider a commercial mortgage or non-residential mortgage without truly know the basics. Sure, the right lenders and loan officer will gladly guide the way. But, nevertheless, it is still important to first-hand what you are potentially signing up for, right? Of course, it is that’s just common sense and good business. So, let’s get down to some of the basics.

For starters, just like anything else these days, there seems to be an overwhelming amount of information available for all things commercial mortgage. In fact, any standard internet search will more than likely yield you dozens of articles. But, assuming you are like most business savvy individuals you probably do not have the time to sit down and go through countless articles and that‘s perfectly okay. In all actuality, you can narrow non-residential mortgage basics down to around four major points—the purpose or use for a non-residential mortgage, where to obtain this particular mortgage, how to qualify and of course what are the terms.

Typically, the purpose or rather what you can use a non-residential mortgage for is large commercial properties like warehouses, office buildings or financing for company property improvements. You can also choose to use this particular kind of mortgage to refinance existing commercial loans. With that being said, when in the market for a non-residential mortgage your best lender options are generally banks, especially if you want to deal with the people who are originating your mortgage. Once you’ve decided on the right bank lender for you, the next thing that absolutely has to happen is finding the time to sit down with your commercial lender to go over the terms and qualification requirement in full, clear detail.

Commercial Mortgage – Where to Begin

Clearly, you should never get any mortgage without its terms and borrower requirements being fully explained. Nevertheless, it goes without saying that really no two non-residential loans will be alike. Thus, it makes sense to do the necessary research and ask the necessary questions that pertain to your business, your commercial project, and the actual property. In general, most mortgages that are used for commercial purposes have a repayment period of five to ten years with property improvement mortgages or loan needed to be repaid sooner rather than later. Lastly, no mortgage or loan comes without fees, thus, you should also make sure you are clear the closing costs and more.

Things to consider when figuring out if you Qualify for a Comercial Mortgage

Also a side note, when figuring out if you actually qualify for your business mortgage or non-residential mortgage remember lenders determine your creditworthiness based upon your business credit score, which often varies from company to company. Due to this fact, it is almost a necessity to have your business credit in order across the board because most banks see low or unfavorable business credit scores as a strong indication of your inability to make on-time payments and you never want to give off that impression when applying for a mortgage.


Happy senior business man making his notes at workDennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC 
Private Hard Money Lender

Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

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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.

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