If you’re a commercial mortgage broker working to help a borrower purchase or refinance an auto repair property, there is some information you must provide your commercial mortgage lender to get the process started. Before submitting a loan scenario for an auto repair property, these are the basics you should discuss with your borrower:
- The property: Getting to know the facts about the auto repair property your borrower is using as collateral is an important part of securing your borrower a commercial mortgage loan. How big is the auto repair business? Where is it located? If your borrower owns the property, when did they buy it and how much did they pay? If they are planning to buy it, what is the purchase price? These are all important pieces of information your lender will want to consider.
- Credit: Your borrower’s credit is a big part of the decision to finance for a small commercial lender. You and your borrower must understand and be able to discuss you’re borrower’s credit. Provide your lender with a recent report so that they have up-to-date information. Make sure your borrower is able to discuss any financial issues that appear on their report, such as account delinquencies.
- Ability to pay: Small commercial mortgage lenders always want to make sure that a borrower can make their monthly payments. Make sure your lender has relevant financial information regarding your borrower’s business, such as a profit and loss report or an income and expense report.
- Use of proceeds: A small commercial mortgage lender will want to know how your borrower plans to use the funds. Whether it’s purchasing an auto repair property, or refinancing a mortgage to improve an already existing business, the more information you and your borrower provide the small commercial mortgage lender, the easier it will be to obtain a commercial mortgage for auto repair business.
Whether your borrower is purchasing or refinancing an auto repair property, the above information is crucial in order to begin the lending process. If you and your borrower are able to discuss the credit score, property information, ability to repay and use of funds with the lender, your borrower has a better chance of getting the auto repair financing they need.
Do you have a borrower looking to finance an auto repair property? Click here or call APEX Mortgage Corp. at 800-262-2739.