Frank X. Acocella in Finance, Finance / Banking Founder • CounselPro Lending, LLC Jun 19, 2019 · 1 min read · ~100

The Commercial Mortgage Application Process

The Commercial Mortgage Application Process

Commercial mortgages are a great way of helping to finance your real estate ambitions. Commercial mortgages are different from other types of loans as they are secured by and for commercial real estate properties. The process of applying for a commercial mortgage may not, however, be overly different from other types of loans

Know What You Need

Not all commercial mortgage loans available in the market today are the same. There exist some slight differences, especially as far as the value of the loan you can obtain, the repayment terms, and the need for any securities or collaterals. To set you off on the right track, you need to evaluate your particular business’s needs and personal ambitions.

Assessment of Your Financial Capacity

Before securing any loan, it is crucial to evaluate whether you are financially stable enough to repay the loan. This is especially important in cases where your commercial mortgage lender does not require you to offer equal collateral. Collateral in the form of equipment, properties, and other types of assets may be the best option to ensure that you do not suffer repossession in worst case scenarios.

Go for a Relationship Rather Than a Loan

Experts in the real estate industry advice ambitious real estate developers to establish a property relationship with their potential lenders rather than going straight for the money. Some financial institutions will have the courtesy of taking you through a highly essential property development cycle. They can also offer to walk you through the entire development process until your property is completed. This is much better than instances where you secure the loan, and the rest remains up to you.

Invest wisely

After securing the commercial real estate loan, it is up to you and your due diligence to come up with a proper commercial real estate business plan to ensure that the funds are put to good use. Responsible and timely investment of the funds ensures that you achieve the much-needed cash flow within the forecasted time. If this happens, then it will be an added advantage for you as you will be able to surface the loan from your real estate developments.