Having a plan to follow makes any process easier and that is certainly true for getting a commercial mortgage Texas. These steps will help you to determine a time line and know what to expect as you complete the process.
The first step in securing a commercial mortgage Texas is finding the best lender to meet your needs. You will want to speak to several lenders and gather information before you make your selection. If you have a strong relationship with your bank then this can be a good place to start. You might also want to research online which lenders provide the most loans in the price range that you are planning to spend. Selecting a lender who is accustomed to financiering loans of a certain dollar amount is wise. This means that every step of the process should be well documented and from application to approval the process should run smoothly. You can also speak to a broker for a recommendation.
Once you have selected a lender, then you are ready to begin the application process for a commercial mortgage Texas. There may or may not be a fee for the application process and that will depend on the lender that you have selected. Most lenders will require that you submit financial statements including business and personal records from the last three years. Some specific documents would include operating statements, tax returns, bank statements and net worth statements. When you speak to the lender they should be able to provide you with a detailed list of the documents that they will require.
Once you have submitted your documentation, the lender begins the evaluation portion of your commercial mortgage Texas. Using the financial information that you provided they calculate the likelihood of you being able to make the payments on the loan on a regular basis. While this process is underway, another group will be conducting a background check and credit check.
Property Evaluation is the Final Step
The lender will set up a property appraisal, which you will be paying for, to determine the current value and condition of the property. They will also research the title of the property to be sure that it is clear and able to be transferred. You will also need to pay for an environmental inspection of the property. This is to make sure that the soil is not contaminated and that there is no health risk or danger. Once all of the inspections are completed, all of the findings will be evaluated as a whole to determine if you will be given the loan.
Completing the Loan Agreement
If you are approved for the loan then you have one more round of paperwork to face. It is best that you involve a lawyer who specializes in commercial loan documents. They can review the document for you and be sure that the terms are correct and that you understand the contract prior to signing it. If you have any questions about terms that you do not agree with, then your lawyer can return the contract and request that changes be made. Once both you and the lender agree on terms, you sign the contracts at the closing and also make the down payment. Funding will typically be available within a few days of the closing.
Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@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.
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