How to Get Loan for Commercial Real Estate Property?

A commercial loan is a loan taken to generate income from commercial, residential or industrial property. Whether you are looking to finance for expanding your business or managing expenses, Commercial Real Estate Financing Company can provide following kinds of loans to support your commercial real estate properties:

  • Purchase loans are designed for real estate investor willing to invest in commercial properties.
  • You can use your property to refinance commercial real estate property using current interest rates.
  • Equity loans are ideal choice for large business expenses.
  • A line of credit is ideal loan for working capital over a period of time. 

Steps in commercial loan process

There are usually following steps involved inavailing commercial loans through Real Estate Loan Providers USA:

  • Send in your application to the prospective lenders
  • Your lender will appraise or evaluate the property
  • Your application will undergo credit approval process. On the basis of credit approval, you loan application will be approved or rejected.
  • If your loan is approved, you need to finalize the terms and conditions with the lender and follow the process to get the loan. You need to pay the required fee which include down payment, which is usually 20% – 30% of the loan value. Then, you also need to consider upfront fees such as property appraisal, survey fees, legal costs etc. 

Lender’s general criteria for providing loan to the borrowers

Lenders generally consider following criteria to finance commercial real estate:

  •  The capital and cash flow invest in your business.
  • The appraised value of property to be used as mortgage to secure the financing and knowing its current market value.
  • Internal and external economic factors to know your ability to pay as well as make the intended use of a loan.

Documents to carry for approval of commercial real estate loan

When you are approaching a lender to finance commercial real estate property, it is important to carry following to qualify the loan:

  • A detailed business plan to support loan approval
  • The business plan you have for the property you are intended to buy
  • Three to five years of financial documents including business and personal documents
  • Your personal credit history

The interest on loan usually depend upon varied factors such as loan to value ratio, type of business, credit score and financial health and stability of the individual applying for commercial real estate loan. There are a variety of commercial real estate financing options available. You need to work with your banker or Commercial Real Estate Financing Company to find the most appropriate financing options to realizing your business goals. There are usually following kinds of Real Estate Loan Providers USA engaged in providing loan for commercial real estate property

  • Banks offer loan at low interest rates, but they usually have strict criteria and give loan only to those having real good credit score. Their application process is usually slow, however if approved it allows you to get loan at cheaper interest rates than other commercial lenders.
  • Commercial Real Estate Financing Company also provides varied lending options to fiancé commercial real estate property. They have faster and lenient application process and higher interest rates than bank loans.
  • The SBA 7(a) can be utilized for buying real estate, refinancing debt or buying a business. An SBA 7(a) loan is the commonly used mortgage option by businesses purchase or refinance owner-occupied commercial properties up to $5,000,000. The majority of SBA loans are used for buying commercial real estate property.  The typical term for getting an SBA7 (a) loan for commercial real estate is between 10 – 25 years.

Commercial real estate financing companies can help you to finding ideal loan to suit your needs. Many of these companies have access to leading lending institutions and more capital and they leverage relationships to help clients in getting access to the best loan options in the market in a fast and hassle free manner.


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