Mortgage Buying Strategy


Commercial lenders exaggerate their speed. They’ll tell you a 30- 45 day processing time when the truth is closer to three months. Be sure to apply for your commercial real estate loan early.
Never rely on a single commercial lender. Commercial lending is very subjective. In other words, it depends on the opinion of some very fallible and unpredictable human being. The smart borrower will therefore submit his deal to at least four commercial lenders. C-Loans can help you do that.
Commercial lenders must order the appraisal themselves. Do not let some inexperienced mortgage broker talk you into allowing him to order an appraisal. The bank won’t be allowed by law to accept it.
Most commercial lenders now require toxic reports. If a lender forecloses on an environmentally contaminated property, the lender inherits the clean-up costs, unless the lender first gets a Level I toxic report.
Many con men masquerade as direct commercial lenders, just to steal the borrower’s application fee. Watch out!
A Term Sheet is a expression of interest by a direct commercial lender in making a particular commercial loan, along with a good faith estimate of the eventual terms. The letter is not binding on the lender, but it usually represents very good news. You should never agree to pay for a commercial appraisal until the lender has issued a term sheet with acceptable terms.
The closer a lender is to your property, the better the deal he will offer you. Lenders from far away seldom have better terms than local lenders.
If you own a company with a lot of cash flowing through your business account, you can use the promise of a deposit relationship to negotiate a better commercial loan.
Take small commercial real estate loan requests to small banks, and take large commercial loan requests to large banks. Match the size of your lender to the size of your commercial loan need.
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