Important Tips: How to Close Your Commercial Mortgage Loan Quickly
When you want to move forward with an important business venture, a commercial mortgage loan can help immensely - but only if you're able to successfully close the loan. With a commercial mortgage loan, you'll be able to buy commercial property for development (i.e. rental properties), a retail outlet, an office or office building, a restaurant, a factory or warehouse, or for any other business purpose. But just like closing a home mortgage loan, closing a commercial loan can be tedious and stressful. It may take a matter of days, weeks or even months to close a loan.
Do all you can to prepare before you apply. If there are lose ends to tie in your financial situation such as hindrances on your credit report, unpaid bills, etc., take care of these before you turn in a loan application. These can not only prolong your loan process, but may hinder you from getting the loan altogether. You can obtain a copy of your credit report through the three main credit bureaus - Equifax, TransUnion and Experian. View your credit report to see if there are unpaid items, judgments, etc. that are affecting your credit score. If there are items you cannot clear from your credit report in a timely manner, then write a letter of explanation to your lender about these items and include the letter with your loan application.
Be sure the most recent two years of tax returns are complete for both business and personal taxes. If there's an extension on your taxes for whatever reason, have a copy of your extension readily available along with copies of your financial statements. Tax return documents should be the originals with your signature - not copies. Prepare your year-to-date financial statements for both personal and business, and obtain your three most recent bank statements from all banks you use - personal and business accounts - with your commercial mortgage loan application.
Other Considerations for Closing Your Loan
The real estate sales contract for acquiring commercial real estate must be valid at the time of your applying for a loan. An extension will be needed up front if your contract will expire before the closing of your loan. If you need a commercial mortgage loan for an investment property, all tenant leases should be valid, with lease terms matching the rent roll. If your business is a corporation, make sure it is in the status of "active" before applying for a commercial mortgage loan. You should have an active occupational license, active business license, etc.
Be completely honest about your loan needs, credit history and financial information. Also, be realistic about the value of the property. You don't want to underestimate its value, but you also don't want to overestimate. An appraisal that falls short of what you expected could result in a lot of disappointment, and wasted time and energy.
A great way to "get it all together" when applying for a commercial mortgage loan is to speak with your accountant. Your accountant can help you obtain all the financial documentation needed to present with your loan application. You'd be surprised how easy it is to obtain clear, accurate documents from your accountant, without having to scramble at the last minute for paperwork at your home or office.
Using an online commercial mortgage broker can be advantageous because you can apply online and use fax and e-mail to exchange information. This works great if you're on a tight schedule and are unable to run back and forth to a physical location. Commercial mortgage lenders and brokers can help you apply and close the loan easily through step-by-step guidance.
Many online mortgage lenders offer a variety of services to fit your business needs, such as conventional commercial mortgage loans, hard money commercial mortgages, equity financing and joint ventures, asset management, debt trading, and more. If you're ready to get started with your commercial mortgage loan, find an online broker today to jumpstart your loan proceedings!
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About the Author
+Chris Robertson is a published author of Majon International. All Rights Reserved. Copyright 2014 (Tue Jan 20 2009) Majon International. Majon International is one of the worlds MOST popular internet marketing and internet advertising companies on the web. Visit their main business resource internet marketing web site at: http://www.majon.com