Working with a borrower seeking financing for a warehouse purchase or refinancing can be challenging, particularly if your borrower isn’t bankable. However, there are commercial lenders who are willing to provide mortgages to borrowers looking to purchase or refinance warehouses. Before you contact your lender regarding a warehouse property, though, you should take the time to learn some important information about your borrower and their unique situation.
Discuss your borrower’s credit history.
Before speaking with your lender, make sure you have a conversation with your borrower about their credit history. You’ll need to provide your lender with a recent credit report and you and your borrower should be able to explain any issues throughout, such as delinquencies or bankruptcies.
Ask your borrower about their property.
When submitting a loan scenario for review, it’s important to have a thorough knowledge of your borrower’s property. You should discuss the size, location and estimated value of the property with your borrower. Be sure to let the lender know about any possible environmental concerns or past uses. If your borrower is planning to purchase the warehouse, make sure you know the purchase price. All of this information will help your lender to make a decision.
Learn about your borrower’s ability to repay the loan.
A commercial mortgage lender needs to know that a prospective borrower can make their monthly loan payments. Be sure to discuss this with your borrower and send any relevant financial documents to your lender.
Find out how your borrower plans to use the money.
Before submitting the loan to a lender, discuss the use of funds with your borrower. Whether it’s purchasing a warehouse to start or expand a business, or refinancing to pay off a mortgage or make improvements, be sure to provide your lender with a loan summary detailing these plans.
To secure a commercial mortgage for your borrower’s warehouse property, you need to provide your lender with the information above. If you and your borrower are able to talk about their credit history, the property itself, your borrower’s ability to make loan payments and how they plan to use the funds, your borrower has a good chance of obtaining the commercial loan they need to finance the warehouse purchase/refinancing.