Commercial Mortgage
Commercial Mortgage Financing - What You Need to Know
Need a commercial mortgage right now? You can submit your commercial mortgage loan application to 750 different commercial mortgage lenders in just four minutes using C-Loans. And C-Loans is free. Click here to apply.
Obtaining a commercial mortgage is different from obtaining a residential mortgage. Thousands of residential mortgage lenders will compete to make you the exact same mortgage loan on your home. The reason why is because they all sell their their residential mortgage loans to the same buyers - Fannie Mae, Freddie Mac, or the FHA.
In contrast, commercial mortgage loans are seldom sold off in the secondary market. The reason why is because every commercial mortgage loan is different. Compared to a home, a commercial building is much less standardized. For example, the typical house has three to four bedrooms, two to three baths, and a garage. in contrast, a commercial building might have a single huge unit (think of a drug store box), or it might have a whole series of small commercial shops. A commercial building might have office suites over ground floor retail space. A commercial property might even have an industrial building in back.
As a result, commercial mortgage loans are usually portfolio loans. This means that if a bank makes a commercial mortgage loan, it pretty much has to keep that commercial mortgage in its portfolio for the entire term. Therefore the term of a commercial mortgage loan is typically far shorter than that of a home loan. You will also probably have to shop your commercial mortgage to a number of commercial banks before finding a home for the commercial mortgage.
Commercial Mortgage Placement Tips
- Take your commercial mortgage loan application to a bank. Commercial banks are the lenders who make most of the commercial mortgage loans today.
- Take a large commercial mortgage to a large bank and a small commercial mortgage to a small bank. Match the size of your commercial mortgage to the size of the commercial bank.
- If a commercial bank is going to make a commercial mortgage, it greatly prefers local property. Take your commercial mortgage loan application to local lenders.
- Commercial mortgage applications take a long time to process. Be sure to allow yourself at least four months.
- Commercial banks only like to lend to borrowers with lots of cash. Consider refinancing your home and putting the extra cash in the bank before applying for a commercial mortgage.
- Use a commercial mortgage portal, like C-Loans.com. You just make one quick loan app, and then you can quickly shop your commercial mortgage to dozens of different banks.
Need a commercial mortgage right now? You can submit your commercial mortgage loan application to 750 different commercial mortgage lenders in just four minutes using C-Loans. And C-Loans is free. Click here to apply.
One final thought. Even though you are on the web tonight looking for a commercial loan, you still have money virtually rotting in the bank, in your IRA, and in your pension plan earning a very paltry rate. Is the bond portion of your investment portfolio earning 7% to 12% interest or is it losing money every month as interest rates march upwards? You should seriously consider trust deed investing.
