By: Darren Yates
As is the case when applying for any mortgage, be it a residential or a commercial mortgage, the
better your credit and the better the collateral, the easier the process becomes. But that doesn't
mean that if your credit is less than perfect, or you want to purchase commercial property in a
less then desirable part of the city, that you are automatically locked out of getting the money
you need. It just means that you need a "friend" in the business.
When you are applying for a commercial mortgage your potential lender will consider your credit
rating, your business' balance sheet, the purpose of the loan, and the type and location of the
proposed property as well as that property's appraised value. If every one of these items do not
fall within the lender's acceptable guidelines then you may get a "no thank you" instead of a pile
of money. Considering the amount of paperwork that you may have to complete in order to get a
decision, be it a positive or negative one, you want to make sure that you have the best chances of
securing that loan before you even start.
And that is where having a "friend" in the commercial mortgage business comes into play. If you
were going duck hunting, and only had one shell with you, then you'd better be a pretty good shot.
On top of that, you'd better not be planning to serve roast duck to a crowd because you're only
coming home with one duck if any. Oddly enough, the same holds true when you are applying for a
commercial mortgage.
Different lenders have different requirements for granting an approval. Since your goal is to
make getting a commercial mortgage loan approval as easy as possible then you need to carry more
than one shell with you. The best way to do that is to use the services of a commercial mortgage
broker. A broker represents you and submits your commercial mortgage loan application to many
lenders. Your "one shell" turns into a whole case of ammo as your application makes it across the
desk of potentially hundreds of lenders. The odds are greatly in your favor that you are going to
get an approval from at least one lender and, the truth is, many borrowers end up with several
interested lenders and can actually negotiate the terms and conditions which suit them exactly.
Since your commercial mortgage loan broker doesn't earn their fee unless you get approved, they
work with you to make getting a commercial mortgage loan as easy as possible. And, since the broker
gets paid by the lender and not you, there is absolutely no reason not to engage their
services.
Even if you had access to the same quantity of lenders as a broker does, you would have to fill
out a separate commercial mortgage application and submit it to each lender. That process alone
would take you more time than it takes to drive across the continent. A broker uses the same
application and sends it to all of their lenders. That fact alone makes it easier to get a
commercial mortgage than doing it yourself does. Even better is the fact that the broker already
knows the terms and conditions that each of their lenders utilize. The broker will only send your
application to those lenders whose qualifications you already meet.
Just like with everything else in life, there is an easy way and a hard way. If you're looking
for the easy way to get a commercial mortgage loan then I suggest finding the best broker for your
needs and let them do all the work. It doesn't get any easier than that!
Article source: http://EzineArticles.com/?expert=Darren_Yates
