Starting
Out
There
are several
steps that
you should
take in
order to
make your
commercial
mortgage
process
as pleasant
as possible.
The first
step should
be to identify
your desired
acquisition.
It will
be impossible
to go any
further
if you do
not have
a specific
commercial
property
selected
that you
believe
will meet
your needs!
Finding
a Lender
Once
you have
selected
your property,
it is time
to find
a lender.
There are
two ways
in which
you can
choose to
undertake
this search.
You can
hire a mortgage
broker to
help you
identify
an appropriate
lender and
be the intermediary
in the deal,
or you can
choose to
search yourself.
If you decide
not to use
a broker,
then make
sure to
do plenty
of research
about different
types of
lending
institutions
and the
rates that
they offer.
Not all
rates and/or
mortgage
types are
equal, and
it will
take a lot
of research
in order
to find
your most
suitable
option.
A good place
to start
the search
if you are
not using
a broker
is either
with your
local business
bank manager
or the on
the internet.
Application
Process
Once
you have
identified
a lender,
it is time
to complete
a loan application.
It is at
this time
where the
lender will
assess your
cash flow,
assets and
the risk
of the proposed
acquisition
in order
to determine
if you are
a suitable
candidate
for a mortgage.
You will
likely have
to provide
financial
documentation
to the lender,
including
detailed
statements
of both
business
and personal
accounts,
typically
from the
previous
three years.
Representation
It is
advisable
to hire
a lawyer
before you
sign an
agreement
with the
lending
institution.
The lawyer
will review
the terms
of the loan
and will
help identify
if there
are any
hidden fees
that you
are not
aware of.
The Outcome
Finally,
the lender
will either
approve
or deny
the mortgage.
If the mortgage
is approved,
it is processed
and you
will receive
the mortgage
and begin
making agreed
upon payments.
If your
application
is denied,
you will
be provided
with a list
of reasons
why. When
you feel
like you
have sufficiently
addressed
those reasons,
you are
free to
reapply.