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The best way to get a secure commercial mortgage loan in a short period of time is to have all of your information organized before you apply with a lender. Unnecessary errors will cause the application process to take longer, so you must make sure to carefully prepare your documentation. If you intend to try several different lending sources for your mortgage loan, give each of them your application and supporting documents at the same time.
Supporting Documents You Need
Here is a brief list of some things a lender may require in order to arrive at a decision on your loan:
- Completed loan application
- Purpose of the loan request
- Loan structure you prefer
- Purchase information
- Business Plan
- Financial Statement
Your presentation material should be clear and concise, and easy for a lender to comprehend. You may also want to draft a brief letter describing exactly how you intend to use the loan proceeds. The more detailed your information the faster you will hear back from the lender.
Step 1 - Deliver Your Materials to Each Lender
By dropping off your application and documentation to each lender at the same time, you may get multiple approvals which will allow you to pick the safest loan for your business. This will also save time in case one lender does not grant your request, since you will not need to wait as long to hear back from the other lenders you applied with.
Step 2 - Weigh Your Approval Offers
If you receive several different loan approvals, perform a thorough analysis of each offer. Check the fees each lender is charging and the financing terms, and then pick the lender that you feel is giving you the best deal. If you are uncomfortable with one of the loan offers, contact that lender and see if there is a way for them to give you a better package.
For example, one lender may have approved your loan but at a higher interest rate than you want to pay. They may require a larger down payment in order to drop your rate a quarter of a point. Even if you decide to meet their demands, you should still not be afraid to negotiate the loan pricing if you think there is some room to maneuver.
Step 3 - Contact the Lender You Chose
Have the lender answer any questions or address any concerns you have about the mortgage loan repayment terms. Set up a time for the loan closing, and if you are using the funds to buy property, contact the seller to arrange a time to finalize the sale.
Step 3 - Contact the Lenders You Did Not Use
As a courtesy, it is always a good idea to call the lenders you opted not to use and thank them for their loan offer. You may need to apply for funding with one of them later on as your business grows, so it is good to maintain a casual relationship.
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