3 Steps Before You Apply for a Commercial Loan

By: Zack North

Applying for a commercial mortgage loan doesn’t have to be an overwhelming or complicated process. With the right knowledge and lending team on your side, you can find the right funding scenario to meet your needs.
Here are a few commercial loan steps to take before you apply:

#1. Understand Your Needs

Perhaps you’re looking to refinance before a balloon payment comes due. Maybe you need additional cash flow to take advantage of a new investment opportunity. Or, you could be looking to improve your existing business by renovating the space in which you work.

Clearly communicating your goals will save you time as you search for the ideal financing solution. Loan officers who understand your needs, including factors like your rate sensitivity and long-term financial objectives, can more quickly weed out options that simply aren’t a match.

#2. Do Your Research

In today’s funding landscape, there are a number of different paths you can take to get the loan you need for your purchase or refinance. From traditional banks to non-bank lenders and even peer-to-peer lending, it’s important you do your research to understand the pros and cons of working with traditional banks, non-bank lenders, peer-to-peer options, and more.

In addition to researching types of lenders, you’ll also want to understand their specific programs — the funding options they have available depending on your creditworthiness and the commercial property in question.

Lenders will typically include some general information on their website and printed materials. But you can save time by reaching out directly to a representative who can give you details you may have otherwise missed.

Applying for a commercial mortgage is a time-consuming process – you can save time by quickly disqualifying certain lending options based on their documentation or credit requirements.

#3. Gather Your Information

Getting all your information together before you apply can be exponentially helpful in streamlining the application process. Here’s a quick list of some of the items you may be required to provide:

Business and/or personal bank statements
Your business tax ID
Business and/or personal tax returns
Profit and loss statement
Balance sheet
Debt schedule
Business legal documents (ex: licenses and permits, proof of insurance, articles of incorporation, etc.)
Your business plan
Select Your Lender and Apply

Choosing the right solution can mean all the difference in your lending experience. Be sure to select a partner that understands your unique needs and that has the funding options available to help you achieve your unique goals.

Once you’ve made your choice, it’s time to apply. Just remember that the work doesn’t stop there. You’ll need to maintain a strong level of communication throughout the process — and be willing (and able) to provide any additional information or clarification as you move toward closing.

If you’re curious about your loan options, be sure to connect with one of our team members at Commercial Direct (a Division of Silver Hill Funding, LLC) today!

Author: Zack North

Zack North is the Director of Marketing for Commercial Direct.  As a regular contributor to a number of top industry publications, Zack enjoys writing about topics that help investors and business owners approach commercial mortgage financing with confidence.

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