There are can be many obstacles to obtaining a commercial mortgage, whether you’re a startup or an established business looking to expand. Some of these obstacles you can influence but many are out of your control.
For example, if the economy is performing poorly, then banks will be more reluctant to approve your application — especially if you don’t contribute a large down-payment. Other factors that are out of your hand as an applicant could be the bank’s risk assessments and the demand in your market.
Get Educated On Commercial Mortgages
A commercial mortgage can not only be used to buy a building but can also be used to offset the costs of a renovation or expansion. Before submitting a request for a loan, know the pros and cons. Knowing the terms of the commercial mortgage can help you make proper use of the loan and to create an appropriate rating for the terms and conditions of your business. The better your plan and investment with the loan, the more likely you are to be approved.
The know-how will equip you to manage the mortgage properly, leaving room to save the capital for the rest of your business. Before placing a loan request, make sure you do the following:
Stay Organized
Have all your documents in order and be prepared to state your case concisely. This will show the loan officer that you’re professional and take the process seriously. If you’re unorganized, it could raise concerns about your business’s or your plan’s viability.
Be Clear
Explain why the features of a building, such as size and number of floors are essential for your business and most importantly, how it will help grow your bottom line. Also, if the market price of the property offered is below the market price, come up with strategies to raise it to increase your returns.
List all the risks associated with acquiring a property, and if you need assistance with the evaluation, ask a realtor.
To book a consultation, call Northwood Mortgage today at (416) 969-8130 or contact us here.
