Learning About Finance Topics

Tips For Getting A Commercial Mortgage

by Laurie Washington

If you are a business that needs a commercial mortgage in order to purchase a storefront or a factory, you might feel intimidated. Getting a commercial loan tends to be a process that many people have not gone through before. Here are some tips for making sure that you are able to get the mortgage that you need.

1. Get Several Years of Financial Statements Ready

Many lenders require you to provide multiple years of financial statements in order to ensure that you are going to be able to generate the revenue needed to pay back the loan on time. Talk to your bank to ensure that you will be able to get these statements at a moment's notice. If you do not have organized financial statements, call up your potential lenders and find out how many years of statements they require. Get the statements together before you even start applying and consider including them with your applications.

2. Make Your Application Professional

In order to make sure that your application is given a fair chance, take the time to get rid of any spelling errors on your application. You don't want to be asking for a several million dollar loan with an application that has spelling and grammatical errors, because it will give the impression that you don't take the loan seriously and will therefore be less likely to pay it back on time.

Get a professional, full-color photo of the property that you are trying to buy taken and include it with the application. Spending the money to get a professional photo will show any lender that receives your application that you are serious about getting the property and are willing to spend extra money in order to get the funds you need. 

3. Spell it Out

Finally, be sure that you expand and explain any abbreviations that you might need to use in your application. You might be very familiar with the different zoning laws and organizations that the property meets and might have taken the time to write them down on your application. However, if you use abbreviations, the lender is not going to know what these are. If you take the time to make sure that you explain all the abbreviations that you use or avoid using them altogether, you can ensure that all the lenders will understand your application and, therefore, be more likely to give you a loan.

For more information, talk to a commercial mortgage lender.