Need a commercial mortgage? Make the process faster by knowing the requirements!
Lenders require a lot of criteria to be fulfilled. If you don’t have them all ready, the process could take very long to complete! Sometimes it could even result in rejection. We have put together a list of what lenders usually need to determine your eligibility for a commercial mortgage! Consulting with a commercial mortgage broker could also help clear your doubts
The requirements are:
- A business property
- A business plan
- Income statements
- Credit reports
- Stakeholder details
- Budget plan
Commercial mortgage lenders consider their borrowers to be high risk. They require a security in exchange of the large amount they present. Having a business property to borrow against can help you get better deals. You can’t start a business without a business plan! You would be required to present the detailed plan of action to your lender. You can take the help of your commercial mortgage broker to optimize your business plan easily.
Like any other mortgage, commercial mortgage lenders also require you to present your income statements, credit reports, and other related documents. This gives them an insight into how you will handle such a huge amount. You should get all your documents ready and filed in order.
Your lender would also require a list of all the proprietors and stakeholders involved in this business. They would be liable for repayment and hence the lender would be interested to know their financial standing as well.
Lastly, you need to prepare a detailed budget plan for your commercial mortgage. It should include the basic budget details with any foreseeable expenses and other fees. You and your commercial mortgage broker could decide the amount with this. It could also help the broker to get you customized deals.