Tips to get a Commercial Mortgage fast
Tips to avail commercial mortgage:
Commercial real estate mortgage lets the investors purchase an owner engaged and revenue producing commercial investments. The time period of availing the loan may vary according to the choice of the borrowers and it is between few months up to 30 years. The interest rate and the fee may also vary upon the time period chosen.
There are various factors that need to be analyzed by the lenders and in order to get it approved without any hassle; the following factors should be favorable:
- Property value
- Loan-to-value ratio
- Debt-service-coverage ratio
- Net worth
- Credit rating
Even though each lender will have their own preference and demands from the borrowers, the below stated requirements is mandatory for every borrower so that their loan gets approved. They include:
- Each borrower should have credit strength of above 680.
- They should not be charged with any bankruptcies, tax liens or any kind of foreclosure.
- They should pay down payment cash up to 10 percent.
- The life time of the borrowers business should at least be 3years or more.
- The Debt service coverage ratio of their business should be 1.15.
- The main aim of the borrower will be to acquire the lowest rate possible with a good deal of interest rate.
In order to make the process of getting a commercial mortgage quick and prompt, every borrower will need a help from the enterprises who makes the documentation process easy. New City Financial is a firm that guides the borrowers in getting their requirements according to the lenders wishes. They will make sure that they get the best term available on a commercial mortgage loan. Some lenders may keep the rate either stable or adjustable. The long term and short term aspect of the financing should also be taken into consideration before applying for the loan.
Most of the commercial mortgage lenders focus on the borrower’s investment location, terms of the lease agreement, cash flow statement and the property condition. If all these factors match with the lenders requirement, they can avail best rate provided by the lenders.