The commercial mortgage’s procedure is similar to the residential mortgage procedure. The only 2 differences are evaluation methods and documents needed by the lenders comparing to the residential mortgage. The evaluation of commercial mortgage is more complicated than residential mortgage. And the processing time is also much longer than personal mortgage application. The lenders will not only focus on the property value, LTV and business credit, but on business income, financial statements, cash-flow analysis, market trends, business risk and economic environment etc. For small business, lenders will also check the owners’ personal credits.
Please note: most published mortgage rates online or on the newspapers are for residential, not for commercial mortgage. The commercial mortgage rate usually is much higher than the residential mortgage rate.
If you are a owner of small business or mid and large size of corporation, you can contact us for a free consulting.