What to Expect From Your Commercial Real Estate Loan
08/09/2024
If you’re a business owner who requires commercial real estate to expand your business or to get it started, a commercial real estate loan might be beneficial. According to Gitnux, 43% of small businesses applied for a loan in 2022. These loans are highly specialized for business owners and can help you gain the necessary momentum. Here are a few things you can expect when applying for this type of loan.
Expect to Research Your Lender Options
It’s your responsibility to research the available lenders. You’ll want to find out the types of businesses they work with, their available loan options, loan requirements, origination fees, required documentation, prepayment penalties, and other details that will affect your loan experience. Do plenty of research to ensure you’re connecting with a lender you feel confident about in the long term.
Expect Different Options to Choose From
There are many options when obtaining a commercial real estate loan. This is advantageous for you as a business owner. The more options available, the more likely you are to get exactly what you need and none of what you don’t need.
Some of the options available include permanent loans, which are similar to a home mortgage. You might also be interested in a Small Business Administration (SBA) loan, which is offered by the Federal Small Business Administration. These loans are often very beneficial to small business owners. Another option is a hard money loan, which is provided through private companies. These loans are intended for borrowers who wouldn’t qualify through traditional means. A bridge loan is another option, allowing for short-term financing when a company needs cash flow assistance or wants to refinance an existing property.
Expect a Loan Process
You’ll notice that the steps involved in obtaining a commercial real estate loan are similar to those of getting a home mortgage. You’ll need to prepare your documentation to show your assets, debts, income, and credit. You’ll also need to complete a loan application. It’s important to ensure that you meet all the eligibility requirements before you apply. This can save you time and stress.
These are just a few things you can expect during the commercial real estate loan process. If you want more information concerning these types of loans, please contact us at Sterling State Bank today. We are here to assist you with your business loan needs.