Funeral homes are unique properties, so it can be difficult to find your borrower the small commercial mortgage they need to purchase or refinance these buildings. However, there are private lenders who are willing to provide these borrowers with funeral home financing. Before you submit the loan scenario, though, there is some basic information you need to know about your borrower’s situation.

• Your borrower’s property: Make sure you know the facts about the building your borrower is pledging as collateral. How large is the funeral home?  Where is it located? What is the estimated value of the property? All of this information will help your lender to assess your borrower’s circumstances.
• Your borrower’s credit: Your borrower’s credit is one of the most important factors a lender will consider to determine whether or not to finance your borrower’s request. When you pull your borrower’s credit, be sure it’s as recent as possible, so that the lender has up-to-date information. Make sure you and your borrower are prepared to discuss any financial issues that appear on the report.
• Your borrower’s capacity: Small commercial lenders will always want to make sure that a borrower has the ability to make their loan payments. Providing relevant financial information about the funeral home will provide a lender with the information they need to evaluate your borrower’s situation.
• How your borrower plans to use of funds: Be sure to include a loan summary that details how your borrower plans to use the small commercial mortgage. Whether it’s purchasing a funeral home to start his or her own business, or refinancing a mortgage to improve an existing business, the more information you and your borrower provide, the easier it will be to attain funeral home financing.

Providing a small commercial mortgage lender with the information above is crucial to securing your borrower the financing they need for their funeral home. If you and your borrower are able to discuss the property information, your borrower’s credit, their ability to repay the loan and how they plan to use the funds, your borrower stands a better chance of obtaining funeral home financing.

If you are a commercial mortgage broker who would like to discuss a small commercial mortgage scenario, please call APEX Mortgage Corp. at 800-262-2739 or submit your deal here.

‍