Steps for Commercial Mortgages

This applies to a purchase of Commercial Real Estate and/or Refinance of existing Commercial Real Estate.

Step one: determine how much you can borrow

Commercial loans This is a function of a couple things. How much of a monthly payment can you afford, how much net operating income is the property generating, and given your unique credit and employment/ investment history, income and debt, and goals, how much will a lender loan you? The first part you can get a rough idea of by using the following calculation: We must first determined the Debt Service Coverage Ratio (DSCR). Net Operating Income / Divided by Total Debt Service. The Minimum DSCR required for most programs is 1.00-1.25. If a property generates $125,000 a year in Net Operating Income and has a yearly debt service of $100,000, then the DSCR id 1.25 = $100,000/$125,000 We'll help you through different scenarios by asking a few simple questions. Based on standard lender guidelines, we'll get you a good idea of what kind of terms and loan program you can expect to benefit most from. That is why we ask you answer as much of the commercial Loan Questionnaire as possible.

Step two: pre-qualify for your loan

This is where the rubber meets the road and you save the most money. You supply information about your business, your assets, your investment history, and so on. We get your permission to run your credit score. When we review all this information we get you a Pre-Qualification/ Pre-Approval from a direct wholesale lender . Handle it with care -- to a seller, it's like a suitcase full of cash! If you are working with commercial realty agent they will use your Pre-Qual (as they may call it) to make the best offer on the property you choose, and the seller(s) knows you're pre-qualified / pre- approved. It gives you buying clout! And while you're picking out the investment that's right for you, we're busy finding the loan that's right for you.

Step three: apply now! We make it easy

Once you've made an offer or letter of intent and it's been accepted, it's time to complete the loan application. It couldn't be easier, and you can do it online, right here at our website. When the time is right, we'll order an appraisal and move on with the loan documentation requirements. Ordering surveys and environmental reports if needed. This process can take from 2-5 weeks depending on the complexity of the commercial property.

Step four: your loan is funded

Once all documentation has been received and reviewed, then we move to funding of the loan. We'll coordinate with the lender to make sure all the papers your lender will need are in order, and you'll sign everything at the closing table.