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