Are you planning a business expansion in Phoenix, Arizona or you’ve just realized that your renting costs are denting your cash inflows way too much? In either case, you should be on the lookout for options to get you a new building or a piece of land for your business. And, if you’re short on finances, a commercial mortgage would be a great choice for you to consider. Like traditional mortgages, a commercial mortgage will give you access to the funds you need and is secured against a property.
So, how you can get a successful commercial loan mortgage in Phoenix? Here are five effective steps that you can follow.
- Determine How You Plan To Use The Loan
First and foremost, you should be clear in your mind exactly how you plan to use the loan. For instance, if you’re interested in buying a new office building, you should have the property finalized and put it in the contract. Similarly, if you are planning on remodeling the office you’re currently working from, have a proper plan for it and make sure that you know what your end product will look like. All such information won’t just help you decide the type of commercial mortgage you need but also get it approved from a lender.
- Decide On The Type Of Commercial Mortgage Loan You Need
When you are clear in your mind exactly what you’ll be doing with the loan you receive, you can easily determine what type of commercial mortgage loan you need. Depending on what you need to do with your loan amount, you may want to get approved for a commercial construction mortgage, a purchase loan, a refinance loan, etc. Remember here that the type of commercial loan mortgage in Phoenix that you choose will restrict your options when it comes to choosing a commercial lender. That’s because most lenders out there deal only in particular types of commercial mortgages.
- Find The Best Commercial Lender
Once you’re clear on the basics, you can start looking for a commercial lender. It may not be as simple as picking the one who appears to be the best to you. In fact, there are strict lending policies that most credit unions and banks have in place and that means you’ll have to meet their qualification criteria to get the money you’re looking for. Commercial lenders often look at:
- Business Credit Rating
- Personal Credit History
- Coverage Ratio
- Annual Revenue
- Debt-to-Income Ratio
Other factors they may consider include property type, buying price, loan-to-value ratio, operating statements, and rental income (only if applicable). Taking into account the evaluation criteria different commercial lenders use, you’ll be able to save time skipping on options that aren’t too likely to approve you.
- Prepare Your Loan Application
The next step to getting a commercial loan mortgage in Phoenix is to prepare your application. The process here may differ from one lender to another. However, they’d generally want you to fill out a few forms and provide them the information they need about you, your business, and the property you’re interested in. Some supporting documents will also be needed such as your business balance sheet, personal tax returns, business tax returns, business plan, and legal documentation.
- Close On The Loan
After getting approved, you can finally close on your loan and start the commercial project you needed the finances for. For long-term financing, it may take a few weeks or even months. However, your short-term financing needs will be fulfilled a lot faster.
If you’re looking to get the best rates and terms on your commercial mortgages, blakemortgage.com is where you should be looking. Get in touch today and have your business finance requirements fulfilled.
