A Discussion of Commercial Mortgages
If you have ever applied for a personal or residential mortgage, you may be under the false assumption that applying for commercial mortgages is equally simple. This is in fact not the case, commercial mortgages are significantly trickier to apply for successfully, let’s take a look at some of the main reasons for this.
• Commercial mortgages operate under a very different set of lending criteria to personal mortgages. If you do not understand these criteria, and do not have the time to research and learn how these criteria work, then you will find that your application will probably be unsuccessful.
• The application process for commercial mortgages can differ significantly between lenders, you will need to approach a wide selection of lending establishments to receive the best financial product for your needs, meaning you will need to track and control multiple applications that will probably follow completely different processes.
• When applying for commercial mortgages, you will be asked to submit a wealth of supporting documentation; this can include a full business plan showing the effect of the mortgage upon your company’s financial forecast, and a fully audited set of company accounts. These documents will need to be prepared in a format that the lender you are approaching requires them, as discussed above, there are very few standards across lenders, and you may well need to produce several version of each document, one for each lender.
• Individuals who are seeking their own commercial mortgages will not have access to the full range of lenders and mortgage products, only qualified professionals will be able to contact all lenders directly, requesting information about their specific products.
The best way to acquire the best in commercial mortgages is to contact a professionally qualified commercial mortgage broker. By selecting a good broker you will have access to all of the skills needed to make sure that your application is approved and you receive the best from your mortgage product. A broker will be able to assist you in creating and distributing the required supporting documentation to a whole range of lenders in one shot, they have access to a far wider range of products and are able to submit a single, unified application to multiple lenders at one time. This means the entire application process is vastly simplified. Your broker will also be able to search a wider range of products, meaning you are more likely to get the best in commercial mortgages, many of these products are made only available to brokers, without a broker you would not be able to apply for them, these are often the premium commercial mortgages, and represent the very best products the lenders offer.
To sum things up, applying for commercial mortgages is a vastly more complicated affair than applying for a personal mortgage; you would be best advised to seek the services of a qualified commercial mortgage broker to act on your behalf as your point of contact into the major lending establishments.
