Commercial mortgage loans may seem a little intimidating at first. However, with the five simple steps explained below, obtaining your commercial mortgage will not be nearly as difficult as you may expect.

Preparation is the key to successful mortgage approval for a loan that involves commercial property. Each step is reasonably simple if you are thorough and take them one at a time.

Step 1: Locate the property and learn its price and market value. You can do this by speaking to a realtor or by investigating yourself. If you feel the price on the property is within your range, it’s time to move to Step 2.

Step 2: Knowing the price of the property, you can turn to an online commercial mortgage calculator to learn what mortgage payments you can expect at the current interest rates. Play with the numbers by entering different period for the life of the mortgage until you find the payment terms for your commercial mortgage that you know you can readily meet for the life of the loan.

Step 3: Gather information about the property, including price, square footage or acreage, details on buildings, photos, anything that will help you “sell” a mortgage lender on providing your loan.

Step 4: Organize and prepare a presentation. This should include the information you gather as well as a plan for how you will use the property, how you will pay the mortgage on the property, and why the lender should loan you funds for commercial property.

Step 5: Present your mortgage request presentation to a commercial mortgage lender. Discuss the proposed mortgage at length. Fill out any required mortgage applications. Then await mortgage approval.

Step 6: If your first attempt applying for financing fails, inquire exactly why your loan wasn’t approved. If the reason is something that can be fixed or presented better, then repair or prepare for the next presentation.

Step 7: Present to another commercial lender and apply for your commercial mortgage loan.

Step 8: Don’t give up. It may require several commercial loan applications to find the lender that’s just the right fit for your commercial loan needs. Mortgages for commercial property are a little more difficult to obtain than primary residential home loans. Keep going!

Step 9: If you do not find a local lender willing to provide the funding for your commercial needs, turn to Internet-based mortgage lenders. Fill out applications until you find a commercial lender willing to work with you.

Step 10: Once a commercial lender for the mortgage agrees to provide a commercial loan for your acquisition, read the terms very, very carefully. Understand any prepayment penalties, and every bit of the fine print on the commercial loan. If necessary, get a paralegal or attorney to explain anything that isn’t clear to you.


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Commercial property can be acquired by following these steps. You may not have to present your proposal to more than one lender, but you may need to present to several potential commercial lenders before you obtain commercial mortgage approval. If you consistently get “no” as an answer, learning exactly how you can fix the reason for the turn-down will permit you to resolve whatever the problem may be, and then apply for a commercial mortgage at a later time.

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