Most people think that it is very hard to refinance your commercial mortgage but to be sincere this is one of the easiest things that one can ever do. One might be required to have some things in order to refinance a commercial mortgage among them are the personal guarantee and this is required when the income requirements and the debt ratio are not met by the company alone. A commercial loan has assisted many people to get to the next level and improve their living standards. The procedure for refinancing a mortgage loan is the same as that of any other loan. You must your income and ability to repay the loan and at the same time be creditworthy. More documentation might be required for a commercial mortgage refinance including personal guarantees so that your loan is secured from any default.
Ensure that all the documents that you are going to use to refinance your loan are in order. Another thing that you will be required to provide is the financial picture of your company or business so that the lenders can be convinced that your business really exists and is doing well. The picture should also show at least two years tax returns, profit and loss statements, bank records and cash flow records and also all the financial statements because they are the ones that will determine your creditworthy and the amount of loan that you will be refinanced. A commercial mortgage should be represented will all these documents before it is refinanced. At minimums you might be required to provide at least12 months of financials so that they can act as supporting documents for your loan. Apart from the financial information your bank might also be interested in having your personal guarantee and this will be required if the profits are marginal. See more.
Ensure you understand the costs
There is a very huge difference between commercial lending and consumer lending. In this case commercial lending is said to be more expensive and in this case the bank cannot be able to lend you money if they know that you don’t have enough equity in your appraisal as this may lead to default. Another thing that makes the loan expensive is the original fees, inspections and the closing costs that the loan is associated with before it is refinanced. It also requires much time to prepare and at the same time deal with the refinance and also more manpower is required in this case.
Appling for the mortgage
Once you have been cleared with all other things including documentation it is time for you to now apply the loan. Commercial lending is not easy and therefore you have to take more of your time putting all the requirements in order. Before you decide to take a loan ensure you shop around and look for the best rates around and try to negotiate with the origination fees of banks and any other fees that might be required.
Last but not least ensure that you have a positive credit history because this is what the underwriter will look at first before commencing with the processing of the loan. Also note that a business mortgage loan requires more documentation as compared to any other loans. Learn more details at https://corinthiancapitalpartners.com/