Tag Archives: commercial mortgages

Why Commercial Mortgages Cost More than Residential Mortgage

October 11, 2017Uncategorizedcommercial mortgage broker, commercial mortgage lender, commercial mortgagesbigdaddydennis

When you are considering the purchase of a commercial property you will quickly learn that commercial mortgages are more expensive. Understanding the reasons will help you to see why the increased cost is necessary.

As you begin to explore your options for commercial mortgages you will find that there are more fees associated with them and the interest rates are greater than a residential mortgage. This could seem surprising at first but understanding the addition risk that lenders are facing with commercial mortgages will help you to grasp why the fees and interest rates must be higher.

The most obvious difference in the two type of mortgage is the dollar amount. The average residential loan in the United States was just over $309,000 in January of 2017 and at that same time period the average transaction for commercial mortgages was $1,100,000. So these much larger numbers represent a higher risk for the lenders. It is a greater sum of money being borrowed so the lender wants to be certain that they will be able to recover their investment if the borrower defaults. In short, lenders look at a higher loan as a higher burden of repayment and also a higher chance of default.

There is also a greater volatility associated with a commercial loan. A person gets a loan based on their income or salary. This is likely to remain very steady unless the person loses their job. And in that case, they will find another job. Also, in most cases a person’s income rarely decreases and more often than not it increases. But the same is not true for a commercial loan. The loan approval is based on the revenue of a business which is much more likely to fluctuate. A slow period, a bad quarter or a change in the economy can have a much greater impact on a business’s revenue. Because revenue is dependent on the economy more than a person’s income is, there is a greater chance that a business could default due to lack of ability to pay the mortgage.

More Fees

There are also more fees associated with the process of applying for and getting a commercial loan. The amount of documentation required is much larger and therefore takes much longer to review and process. This accounts for some of the additional fees that are needed for administrative tasks. There are also more surveys and inspections required for the sale of a commercial property. The costs of these services are also passed along to the buyer of any commercial building or property.

More Processes = More Cost

As with anything, the longer it takes the more it costs. When the lender is required to complete a greater discovery process before approving a loan then the buyer should expect to pay more fees. It is also easy to understand that if a loan represents more of a risk to a lender then they will want to charge a higher interest rate for the loan. So knowing that the process is different can help a first time borrower to understand why the cost of a commercial loan is greater than the cost of a residential mortgage.

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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Getting the Best Rate on Commercial Mortgages

October 10, 2017Uncategorizedcommercial hard money lenders, commercial hard money loans, commercial mortgagesbigdaddydennis

When you are comparing commercial mortgages you want to verify that you are getting the best rate possible. And there are a few tips that you can keep in mind that lenders are looking for when determining loan rates.

When you are shopping for commercial mortgages there are many terms that you will need to negotiate with the lender. But there are also some key pieces of information that the lender will be taking into consideration when they are determining the interest rate that they will offer you. Knowing what the lender is looking for and what the lender considers a good property can help you to secure a better interest rate and possibly even help you in negotiating the other terms of the loan.

One of the first things that a lender is going to look at is the applicant’s credit rating. The lender wants to be sure that you have good credit and also a strong net worth. These two factors are a good indication of how you would be able to withstand a short interruption in your cash flow. The lender is also interested in your work history and how much management experience you have. They need to know that your business is in good hand, will be managed successfully and will be able to make the payments of this long term commitment.

Lenders are also looking at the property that you want to purchase. Commercial mortgages are often secured by the property being purchased, it is the collateral, and the lender wants to be sure that the property will remain valuable. With this in mind, the lender is interested in the location of the property and that it is not too rural. This can make the property value more volatile and its value could become questionable. They are also interested in the history of the building, any past tenant information and if there are any current leases for any portions of the property.

Understand the Concept of Collateral

Lenders never want to think that they are funding poor applicants for commercial mortgages. But they do have a system in place to protect themselves in case there is an unforeseen issue. Businesses can fail for many reasons and some of them are not predictable. So the lender will require that you offer collateral for the loan. This is normally the property that you are purchasing. And in the event that you default on the loan then the bank will foreclose on the property and sell it to recover their investment. This is the reason that a lender wants to verify the actual value of a property that you are purchasing.

Understand All of the Criteria

Understanding all of the main criteria that a lender is interested in to determine your creditworthiness is very helpful. It allows you to create a packet of information to submit with your application demonstrating all of the qualities that the lender favors as well as showing your financial stability. Meeting all of these criteria will make you a more favorable candidate and get you a better rate on your loan.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Commercial Mortgages: How Can I Select The Best Loan?

October 9, 2017Uncategorizedcommercial hard money lenders, commercial mortgagesbigdaddydennis

Understanding the differences between the various options for commercial mortgages is critical in determining which loan is going to serve your needs the best. However, it is not quite as simple as just picking a loan from a list.

Finding the best loan for your commercial property is similar to juggling. All of the pieces need to be handled carefully, work in unison and fall into place at exactly the right moment. Selecting the best loan for you from the vast number of commercial mortgages begins with selecting the right lender.

But how do you make sure that you find the right lender and have them offer the best loan for you? The secret to this is to make them come to you. If lenders are truly interested in financing your loan, they will bring the best terms and rates to your doorstep, instead of you having to beg and plead for any sort of amicable terms.

The first step in doing this is to do a lot of work researching what is happening with commercial mortgages and commercial real estate market near the property. This will do two things to help you become enticing to lenders. First, it will equip you with the knowledge necessary to know exactly how other loans are being handled so that you can have a frame of reference when it comes to the terms that you are being offered. But it will also enable you to play competitive lenders off of each other. You are the customer, after all, and can use this knowledge to make sure that you are getting the rate and terms that will best suit you.

The second step is to start making phone calls about various commercial mortgages. In doing this, you must be completely prepared and know exactly what you are looking for in your loan. If you come off as unorganized or unsure, potential lenders will not take you seriously. So make sure that you know about your potential property and your plans for it. After gathering information about their rates and terms, thank them for their time. Remember, to a loan officer, time is money. Most of them are paid off of commission and do not want to waste time. They do, however, want to close a loan as quickly as they can, so they can move on to the next and collect their commission. Use this knowledge to your advantage.

By knowing the market, you will be able to use various offers to get loan officers to give you the best deal without much negotiation. At the end of the day, they want your business. They want your loan.

How can I better prepare myself for talking about commercial mortgages with a loan officer?

To begin with, you must know the basics of the property you are pursuing. What kind of property is it? How much will the loan be for? Are you refinancing or buying? What would be the expected Net Income of the property? It would also be a good idea to familiarize yourself with the lingo and vocabulary of commercial mortgages so that you understand the answers that are given.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Why Do Commercial Mortgages Fail To Get Funded?

October 9, 2017Uncategorizedcommercial loans, commercial mortgagesbigdaddydennis

There are a variety of reasons why commercial mortgages fail throughout the process. It is the job of both the lender and the borrower to ensure that the loan process goes smoothly and does not fall apart at the last minute, but how can you make sure that your loan does not fail?

Even though a lending application has been approved and the process of finding an underwriting is well under way, there are still a number of factors that have the potential to make things difficult for the actual funds to be dispersed. As a borrower, the best thing that you can do to prepare for such an issue and prevent it from happening is to stay informed and ask questions. But what questions should you ask about commercial mortgages? Here are some suggestions:

-How is the Loan to Value determined?

This is important to understand right out of the gate, as it significantly affects both the security of a loan and the amount that a lender is going to be putting out. A borrower most certainly would not want to have the property overvalued by them only to find out that the lender has its value at a significantly lower price. Commercial mortgages are begun based on the estimates of the owner, but are completed based on the assessment of the lender. This will not only reduce the amount of the loan, which will surprise the borrower, but it also has the potential to prevent the loan from being completed altogether.

-What costs are associated with closing?

Again, this needs to be something that is well laid out at the beginning of the process. If closing costs are too high for you, as the borrower, to pay, then you will not be granted the loan. Imagine getting to the end of the process with your commercial mortgages, only to find out that you don’t have enough cash on hand to seal the deal. This will leave a sour taste in the mouth of the lender and has the potential to affect other commercial loans you might make in the future.

-Will I need a sponsor?

If you do not have enough experience in the industry, or if your financial situation, both personal and business-wise, are not up to the standards of the lender, they might require you to pursue a sponsor of some sort. This might be something that they require as the application process advances. It is simply to provide more security for their commercial mortgages. If you are going to need a sponsor and are caught off guard by this, it could lengthen or entirely end the process.

As a potential borrower, looking at various commercial mortgages, how do I get the answers to these questions?

The best way to approach this is to ask lenders directly, as all are slightly different. Even better than that would be to get their answers in writing so that you have a reference to compare lenders and also to protect yourself if something were to go wrong with your loan. With a little extra effort, you can ensure that you succeed where many commercial mortgages fail.

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Commercial Mortgage Debt exceeds 3 trillion in 2017.

October 9, 2017Uncategorizedcommercial mortgage, commercial mortgagesbigdaddydennis

The Mortgage Brokers Association reveals commercial mortgage climbed to 3.06 trillion dollars recently.

Commercial mortgages grew by a rate of 1.6 percent in the second quarter, an increase which helped push total commercial debt in the US above the 3 trillion dollar mark. Multi family mortgage debt reached 1.2 trillion dollars around the time time. The report cites the biggest players in the industry are commercial banks, life insurance companies , government sponsored enterprises ( issuers of mortgage securities backed by Fannie Mae or Freddie Mac) and CMBS bond issuers.

Life insurance companies have outpaced banks this year in expanding their holdings of commercial debt. Life insurers both originate and buy mortgage backed securities.This may mean life insurance companies have a larger footprint in the commercial mortgage market than the report indicates. Life insurance companies hold about 15 percent of all commercial debt, with a value of 448 billion dollars. This year they expanded that share by 12.7 billion, a 2.7 percent increase. Life insurers also expanded their stake in the multi-family market by 2.9 percent. Both of these increases on the part of life insurance companies, out paced commercial banks.

Commercial banks also took on a greater share of commercial and multi-family mortgages, but by a smaller percentage than life insurers. Commercial banks still hold a dominant share of 41 percent of all commercial debt. They expanded their lending efforts by 2 percent this year, about one percent lower than life insurance companies. Commercial banks are the second largest originators of multi-family mortgages, topped only by government sponsored enterprises. Commercial banks have expanded this share by 2.5 percent, a lower percentage when compared to life insurers. But by a dollar amount commercial banks still increased their debt holdings by a larger amount than life insurance companies. However the lower percentage increase may indicate commercial banks are scaling back their lending efforts.

CMBS bond issuers are the smallest of the major players noted in the report and account for just 14 percent of all commercial debt. Still CMBS providers decreased their footprint in the mortgage market by 2.4 percent this year. These groups seem to be retreating from the multi-family market as well. Their share of multi-family mortgage debt declined by 5.7 percentage points this year.

Issuers of commercial mortgage backed securities were the only major players whose total debt declined.

CMBS issuers were the only major group in the analysis to decrease their share of both commercial and multi family mortgage debt. The data may indicate that CMBS providers have scaled back lending activity in both the commercial and multi family sector.

The report indicates that commercial mortgage security issuers may not necessarily be scaling back their lending efforts.

MBA analyst, Jamie Woodwell claims in the report that the decline on the part of CMBS issuers may be due to an increased number of securities reaching maturity. Such securities were issued prior to the recession and the demand for these securities hasn’t reached similar levels since then. Naturally as these securities are paid off CMBS providers will see their share of outstanding commercial debt decline. The question is whether the CMBS market will ever return to similar levels of prominence under the new Dodd-Frank risk retention rules.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Life Insurance Companies seem more eager to provide commercial mortgages

October 9, 2017Uncategorizedcommercial mortgage, commercial mortgagesbigdaddydennis

Life insurers are stepping up pressure on banks as providers of commercial mortgages.

Fitch Ratings Annual Life Insurance Report, noted that life insurance companies originated 7 percent more mortgages last year. The majority of these were commercial mortgages and most were tied to multi-family properties. This year life insurers expanded their share of the mortgage market. Banks are increasingly seeing life insurance companies as viable competitors.

In recent years life insurers have barely managed to keep pace with commercial banks in terms of lending. Just last quarter however life insurance companies surpassed banks in the number of loans they issued, originating 25 percent of all commercial real-estate loans according to the Mortgage Bankers Association. Lending by banks was down 5 percent over the same period and is down 21 percent when compared to the same time last year. By March 31st the Fed claims life insurers have a stake in 11.3 percent of the commercial mortgage market, far than smaller the share held by commercial banks. Still life insurance companies are stepping up their investments in commercial real estate, and some banks are not able to keep up.

Like many life insurance companies see real-estate as a worthwhile investment. Life insurers concentrate particularly on multi-family properties. Life insurance companies see multi-family housing as a stable investment that offers steady returns. Mark Talgo senior manager of real estate investment at New York Life claims the company concentrates on, “multifamily assets, because they tend to be less capital-intensive and less volatile.” Life insurance companies held 68.5 billion in multi-family mortgage debt as of the first quarter. This is a 28 percent increase since 2013. This expansion into the multi-family market has a been a success for life insurers. “If you look at life [insurance] companies, the delinquency rate on multifamily mortgages is zero. … It’s hard to fathom that they could be performing any better they are,” said VP of commercial real estate research at the Mortgage Association James Woodwell.

Life insurance companies are competing with banks to offer commercial mortgages to high quality borrowers.

Life insurers have exceptionally high standards when it comes to borrowers. Life insurance companies are in now in direct competition with banks to lend to high quality borrowers. Life insurers often can offer lower interest rates and mortgages with longer terms. Some banks are finding it hard to compete. “When we look at where we’re losing deals or being refinanced out, it tends to be longer-term mortgages provided by the insurance companies at spreads that are thinner than we can do,” says Darren King CFO at M&T bank in Buffalo .

Still it seems unlikely that life insurers will become a major source of commercial mortgages any time soon.

Life insurance companies will likely to continue to provide mortgages only to borrowers with exceptional credit. Likely they wont be competing with banks in terms of mortgage volume. But traditional banks are facing competition on all sides, not just from life insurers but from non-bank lenders as well. As life insurance companies expand their lending efforts, smaller banks may be crowded out in the face of this new competition.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Commercial Mortgages: CMBS lenders revise expectations about the impact of Dodd-Frank regulations

October 9, 2017Uncategorizedcommercial mortgage broker, commercial mortgage lender, commercial mortgages, commercial real estatebigdaddydennis

The second half of 2017 has seen a sharp increase in the sale of securities tied to commercial mortgages.

By the end of July the total value of CMBS loans stood at 47.4 billion dollars, a dramatic improvement from the same time last year when the value of CMBS deals was only 37.9 billion. Mortgage Alert predicts that if the rates of CMBS issuance hold steady then the value of securities issued this year will reach 77.6 billion dollars.

The beginning of the year saw virtually no new commercial mortgage bonds being approved. There were no CMBS loans issued in January and the total value of these loans was only 11.1 billion by the end of the first quarter. But August alone saw the approval of 335 CMBS loans. CBRE’s lending momentum index, which tracks the pace of loan closures, recently ticked up by 27 percent. September is on track to the biggest month for CMBS loans this year. Mortgage Alert claims there are 16 billion dollars of loans in the pipeline.

The CMBS market is obviously heating up. The number of CMBS loans approved in June, was the same as the number of loans approved over the entire first quarter. The mortgages that closed in June were valued at 12.5 billion dollars, twice the amount of any other month this year. The new mortgages so far have primarily been tied to mixed use office properties in New York, Los Angeles and Washington DC. Some notable CMBS mortgages include Vorando’s refinance deal for 330 Madison Avenue, a 500 million mortgage with a seven year term. Black Stone Group also recently acquired BioMed Realty trust and used CMBS securities to purchase 15 of the groups office buildings for 825 million dollars.

The providers of of commercial mortgage securities have adapted to the Dodd-Frank risk retention rules that came into effect this year.

CBRE’s Brian Stoffers said “ The recent surge in CMBS mortgages demonstrated that these lenders are becoming increasingly comfortable with the risk retention rules.” The rules stipulated that CMBS lenders maintain a 5 percent stake in every security they issue. Robert Grenda of Morningstar agrees claiming that early concerns about these risk retention rules have dissipated and that “underwriters have gotten comfortable,” while claiming the new rules haven’t significantly impacted the volume of CMBS loans. The recent surge in these types of loans seem to bear out these claims. Smaller players may have exited the CMBS market, but the remaining players have apparently boosted their lending efforts.

While CMBS lenders are issuing new loans at a greater rate, the total volume of commercial mortgage debt held by these lenders continues to decline.

While the second half of this year will prove better than the first for CMBS lenders, their share of mortgage debt in both the commercial and multi-family sectors fell by 2.4 percent, according to the Mortgage Brokers Association. Securities issued prior to the Great Recession are being paid off this year, and demand for new CMBS securities remains historically low. While CMBS lenders have adapted to the new regulations, it remains unclear whether the industry will ever recover its share of the market under the new risk retention rules.

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Understanding Commercial Mortgage Loans

September 24, 2017Uncategorizedcommercial mortgage, commercial mortgage broker, commercial mortgage lender, commercial mortgage Texas, commercial mortgages, texas commercial mortgagebigdaddydennis

Understanding the process involved in obtaining a commercial mortgage loan and the requirements to qualify for the loan are important for a business owner. It can make what once seemed like a very intimidating process less complicated.

When you are considering a commercial mortgage, you need to first decide if you want to get a nonrecourse loan or a recourse loan. The difference is that with a nonrecourse loan the lender can only take back the property in the event of a default but with a recourse loan the lender can require you to pay additional money if the property value is no longer enough to cover the loan balance. Getting a nonrecourse loan offers you, the borrower, additional security that in the event of a default on your loan, you will not be forced to pay additional money that you might not have. It protects your personal assets such as your home, retirement account and other investments that you might have.

Next you will want to consider which type of terms you would favor for your loan. A fixed rate mortgage is very popular because the rate is set and you do not need to worry about future budgetary surprises. Adjustable rate or variable rate mortgages sometimes offer a better interest rate but you are risking a rate increase which could be very unexpected. This can make it difficult to budget for the future and can cause you added financial stress when the interest rate increases.

The final type of mortgage term is called a balloon mortgage. This is more unique than the first two types in its repayment schedule. With this mortgage you only pay the interest each month but no principle. You can pay extra towards the principle but it is not required. But at the end of the loan term you are required to make a single payment, the balloon payment, for the remaining balance of the loan. This can leave you with a huge payment due at the end of your loan. Most borrowers are forced to refinance their mortgage balance when the term is completed to make the balloon payment. But the benefit is that you have enjoyed very low payments throughout the term of the loan.

Getting Your Loan

Finding a commercial mortgage loan can take some time but there are many lenders that you can work with. It is important to shop around for the best rates and terms to meet your current and future needs as a business. So invest the time to find the best lender for you.

Make a Great First Impression

When you are applying for the loan remember that the lender is judging your businesses ability to repay the loan as well as to be successful in your field of business. Taking the time to have your business and personal financial information prepared is critical. This will show the lender that you are very professional, that you are taking the loan process very seriously and that you are prepared both for the application process but also the process of repaying the loan. Making a great first impression will be very beneficial for a successful loan application process.

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Comparing Commercial Mortgage Terms

September 24, 2017Uncategorizedcommercial hard money lenders, commercial hard money loans, commercial mortgage, commercial mortgage broker, commercial mortgage lender, commercial mortgagesbigdaddydennis

Understanding the terms involved in a commercial mortgage is critical. These terms will help you to select the loan that best meets your current needs and your needs for the future.

Most business owners first and biggest concern when shopping for a commercial mortgage is the interest rate. This is one of the biggest factors in how much you are going to pay to borrow the money that you are requesting. As a borrower, you can look at the interest as the cost of getting a loan. And also understand that most businesses are never in a position to purchase a commercial property without getting a loan. It is the business equivalent of a home mortgage. It is also the way that the lender is going to make money from the deal.

Another important factor to consider is an adjustable rate versus a fixed rate commercial mortgage. A fixed interest rate is one that is set at the time of the loan creation and it remains constant for the entire term of the loan. This provides stability and makes it very easy to budget for future loan payments. A variable or adjustable rate is one that can fluctuate from month to month based on the prime rate and other factors in the economy and business world. In most cases the variable rate starts out lower than a fixed rate but the fluctuation can cause it to end up being much higher. Overall a variable rate is more of a gamble than a fixed rate and can be much more difficult to work into a long term budget.

Finding a term, or time frame, for the repayment of the loan is also very important. A shorter term means that the monthly payments will be larger than if you were to elect for a longer term. You will want to find a balance between the amount that you can afford to pay each month and how much interest you are willing to pay for a longer term.

Banks Make Money from Interest

Knowing that the bank is in business to make money, it makes sense that they are counting on you paying interest for a certain period of time, the term of the loan. If you choose to pay the loan off early then the bank is not getting paid as much interest and they are not making as much money. To offset that potential loss of interest and revenue, many lenders will insert an early payoff penalty clause into your loan. In some cases it is a percentage of the interest that you don’t pay due to the decrease in the term or in other cases it is a flat fee that you must pay. Knowing if there is such a clause will help you decide which loan offers the best terms to meet your needs.

Evaluate All of the Terms Carefully

When you are evaluating terms on a commercial mortgage, it is important to understand all of the fees as well as the repayment process. All of this information tells you how much you will truly be paying for the money that you are borrowing and also how long you will have to repay the money.

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Main Reasons for Eligibility Denial for Texas Commercial Loans

September 19, 2017Uncategorizedcommercial hard money lenders, commercial mortgages, texas commercial lending, texas commercial loans, texas commercial mortgage, texas commercial real estatebigdaddydennis

It isn’t always easy getting a loan. Luckily, recent reports from Pepperdine’s Graziadio School of Business and Management shows that it has been easier for small businesses to get a helping hand from banks. The increase in Texas Commercial Loans is not only boosting the economy, but also leading to job growth. That doesn’t mean though that there aren’t still plenty of denials out there.

Applying for Texas Commercial Loans is usually the easy part of the process, getting approved can be the difficult part. The main reason for loan denials is because the lack of cash flow a company sees. It really all boils down to revenue, and insufficient revenue isn’t going to cut it. A business needs to show that they have a successful cash flow or banks will not be impressed or feel confident that they are going to be getting the loan paid back.

Credibility and stability are factors that play even a larger role in being approved or denied. Without proving credibility or stability, especially with an excellent credit score, there is no reason for funding to be approved. Every small business applying for a loan needs to prove that the extra funding is going to provide extra revenue. Without a good reason for extra money, many banks will not see the need to lend you the extra funds.

With that being said, you should really consider why you are applying for the loan. If you really don’t need the extra money right now, it might be best to not apply. There needs to be a good reason to get the loan and a solid foundation for it, this will lessen your chance of being denied. It is not always beneficial to get a loan when it is not necessary.

Other Factors Can Play a Part in Texas Commercial Loans Denials

Banks take into consideration many other factors as well. They look at the equipment used or available to the small business, the location and also the quality of the inventory. Having an issue with any of these items might give your business fewer options, making it harder and less likely to qualify for any extra funding.

Rotten credit can really affect your chances of getting Texas Commercial Loans!

Of course, credit plays a large role in getting approved for Texas Commercial Loans. Most banks strongly encourage a credit score closer to the 700 mark. If your small business is struggling and you currently don’t have the best credit, consider starting out with a small loan. Your chances of getting a large loan is slim, but try to apply for loans with a smaller amount. That way, you can rack up your credit by making regular payments on time. If you start on building your credit by starting small, then you will have a better chance of getting a larger loan in the future, when your small business will really need it.

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Tag Archives: commercial mortgages

Why Commercial Mortgages Cost More than Residential Mortgage

When you are considering the purchase of a commercial property you will quickly learn that commercial mortgages are more expensive. Understanding the reasons will help you to see why the increased cost is necessary.

More Fees

More Processes = More Cost

Getting the Best Rate on Commercial Mortgages

When you are comparing commercial mortgages you want to verify that you are getting the best rate possible. And there are a few tips that you can keep in mind that lenders are looking for when determining loan rates.

Understand the Concept of Collateral

Understand All of the Criteria

Commercial Mortgages: How Can I Select The Best Loan?

Understanding the differences between the various options for commercial mortgages is critical in determining which loan is going to serve your needs the best. However, it is not quite as simple as just picking a loan from a list.

How can I better prepare myself for talking about commercial mortgages with a loan officer?

Why Do Commercial Mortgages Fail To Get Funded?

There are a variety of reasons why commercial mortgages fail throughout the process. It is the job of both the lender and the borrower to ensure that the loan process goes smoothly and does not fall apart at the last minute, but how can you make sure that your loan does not fail?

As a potential borrower, looking at various commercial mortgages, how do I get the answers to these questions?

Commercial Mortgage Debt exceeds 3 trillion in 2017.

The Mortgage Brokers Association reveals commercial mortgage climbed to 3.06 trillion dollars recently.

Issuers of commercial mortgage backed securities were the only major players whose total debt declined.

The report indicates that commercial mortgage security issuers may not necessarily be scaling back their lending efforts.

Life Insurance Companies seem more eager to provide commercial mortgages

Life insurers are stepping up pressure on banks as providers of commercial mortgages.

Life insurance companies are competing with banks to offer commercial mortgages to high quality borrowers.

Still it seems unlikely that life insurers will become a major source of commercial mortgages any time soon.

Commercial Mortgages: CMBS lenders revise expectations about the impact of Dodd-Frank regulations

The second half of 2017 has seen a sharp increase in the sale of securities tied to commercial mortgages.

The providers of of commercial mortgage securities have adapted to the Dodd-Frank risk retention rules that came into effect this year.

While CMBS lenders are issuing new loans at a greater rate, the total volume of commercial mortgage debt held by these lenders continues to decline.

Understanding Commercial Mortgage Loans

Understanding the process involved in obtaining a commercial mortgage loan and the requirements to qualify for the loan are important for a business owner. It can make what once seemed like a very intimidating process less complicated.

Getting Your Loan

Make a Great First Impression

Comparing Commercial Mortgage Terms

Understanding the terms involved in a commercial mortgage is critical. These terms will help you to select the loan that best meets your current needs and your needs for the future.

Banks Make Money from Interest

Evaluate All of the Terms Carefully

Main Reasons for Eligibility Denial for Texas Commercial Loans

Other Factors Can Play a Part in Texas Commercial Loans Denials

Rotten credit can really affect your chances of getting Texas Commercial Loans!