Commercial Mortgage: Advice For Your First Loan

Is this your first time financing a  commercial mortgage? If so, you don’t have to go at it alone.

An investment property can be a big step for you or your company. Thus, like any other big step you probably want to know just what you are getting into of course and why shouldn’t you? Signing up for a commercial mortgage for the first time is always the hardest. In other words, you’ve more than likely talked a good game about purchasing that strip mall, office park or hotel. But, you’ve probably never seen it through until now and that’s perfectly okay. Before, it was a future dream and bow you are ready to make it a reality so let’s help make that happen.

By now, you probably have your eye on a few good properties, but before you start shopping around for your commercial mortgage, there are definitely a few things you need to do. For starters, stop whatever you are doing this minute and check your credit—double check it, in fact. Your credit and your credit report don't  matter. Chances are you have some issue you need to address or clear errors that you didn’t know where affecting your ability to be a strong borrower in the eyes of your future lender. Thus, this is the very first piece of advice you should take —check your credit and thoroughly review your credit report. If you do have a few outstanding issues that you want to take care of before applying for a commercial mortgage do that, but do not close out any old account, at least not before you obtain your loan. Knowing what your credit score will help you determine if you need an investor partner and it will also help you narrow down your loan options.

Other pre-applying tips that you take advantage of for your first commercial loan include having a down payment of at least 20 percent down or consider a second mortgage if the term down payment scares you and exploring your borrowing options i.e. there are more than banks that are interested in helping you finance your commercial property. Lastly, don’t be afraid to ask about owner financing—it may be just what you need.

The Difference between Wanting to Apply for a Loan and Applying

Clearly, looking at a few properties and checking your check and figuring out your down payment situation are all a part of the game, but there is a difference between wanting to finance an investment property and taking the next step—applying for financing. Thus, when you are ready to apply for your commercial loan make sure you truly understand the numbers, have the necessary documentation on-hand, have the necessary people on board ( accountant, investors, attorney and so on) and try your best to get pre-approved. In doing all these things your commercial property is that much closer to being yours.

Hello Investment Property!

Once you’ve obtained your mortgage for your investment property, it more than likely full-steam ahead. Ultimately, this is an exciting time and a true chance to learn as you go!

Dennis Dahlberg Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:      (512) 516-1177 
Dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027

111 Congress Ave |Austin | Texas | 78701    

   

About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.

Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.