A commercial loan can be a great way to finance your business. But these loans come with many strings attached and strict eligibility requirements. In today’s blog post, we’re sharing four tips for navigating commercial loans, and if you’re looking for great commercial lending rates in Texas, contact Simplified Commercial Lending today.
Go To Multiple Lenders
Visit multiple lenders before applying for a commercial loan to get an idea of what you can expect from each one. Knowing how different institutions approach loans will help you when it comes time to actually apply since you’ll know how they examine your finances and underwriting criteria. This pre-application research will also help you determine which lenders are right for your business. When you are ready to apply, submit your deal to several lenders — commercial lending is subjective, and you want to ensure that you’re getting the best possible rate.
Put Your Own Money Down
As a general rule, lenders prefer to see at least 10% money down on commercial loans. In some rare cases, you may not have to put any of your own cash into the deal. But if you do have money available, it is often a good idea to use it as your down payment. This can help you negotiate a lower interest rate and demonstrate that you’re sharing the risk.
Get Your Own Appraisal
Getting your own appraisal of the property will give you an unbiased idea of what the property is really worth so that you can measure your financial risk. Do not rely only on the lender’s appraisal.
Apply As Quickly As Possible
It’s a good idea to get your loan application material together as quickly as possible. This includes all of the forms and documentation that a lender requires. If you wait too long, the best commercial loan rates may be gone — and since these loans can take weeks or even months to process, you don’t want to risk missing out on the best deal.
Get A Commercial Loan In Texas
Here at Simplified Commercial Lending, we have the experience you need to access the best rates and terms for your commercial mortgage or business financing needs. We specialize in apartment loans, office, hotel, industrial, or retail property loans. Contact our Texas team today for your commercial loan quote.