| Unlike residential loans, commercial loans | | | | application to a lender he believes most |
| require more robust credit and down payment | | | | appropriate for the situation. |
| from buyers. Typically the terms of these | | | | Representatives for banks and other lending |
| loans are less attractive than residential | | | | institutions usually represent only one |
| properties. While these impediments reduce | | | | institution, and will submit the application |
| the number of qualified commercial real | | | | to that institution. There are advantages to |
| estate buyers, there are many investment | | | | each type. The lender will verify the |
| trusts and corporations fully capable of | | | | statements of assets, liabilities, |
| qualifying for and carrying such debt service | | | | employment, and salary. The subject property |
| successfully.Borrowers will be faced with a | | | | will be appraised.The loan approval takes |
| large variety of available loans. In the | | | | about 20 to 30 days on an average. The actual |
| beginning, a deposit receipt needs to be | | | | time depends upon how quickly the lender can |
| provided which represents the terms of | | | | process the application, get the appraisal, |
| purchase of a commercial property. It will | | | | and obtain verification of employment and |
| list the amount to be financed, estimated | | | | bank balances.A commercial loan eases the |
| interest rates and terms of the loan. A loan | | | | burden of paying huge sums of money at a |
| is applied for by completing a loan | | | | single instance. Finance options spread the |
| application with a mortgage broker or loan | | | | paymet towards the loan amount over a period |
| company. There will be a non-refundable loan | | | | of 25 to 30 years. New businesses are |
| application fee, usually around $200 to $400. | | | | increasingly opting for commercial real |
| A commercial mortgage broker represents | | | | estate loans. |
| several lenders, and will submit the | | | | |