If you’re look to purchase an office building to start your own business or rent to other businesses, or you’d like to refinance on your office building, a commercial loan can help you achieve those goals. In order to start to process, though, there will be some basic information that you’ll need to provide the commercial lender to obtain an office building mortgage.
- You credit score and credit report. Your credit score and credit report are two of the most important tools for a lender. Lenders use your credit score and report to evaluate whether or not they’d like to do business with you. Because your credit is so important, it’s crucial to know and understand your report. You can authorize a lender to pull your credit, but many borrowers opt to pay a small fee to pull it themselves. Be sure you have a recent credit report, so that the lender has up-to-date information when assessing your situation for the office building mortgage. Be prepared to discuss any financial “bumps” that appear on your report, such as bankruptcies or account delinquencies.
- Your capacity to pay. It’s very important to any commercial lender that you are able to make your monthly payments on the office building mortgage. Be sure to record relevant financial information about your office building to show your lender that you have the means to make your payments. Filling out a 1003 or a Personal Financial Statement will provide a lender with the information they need to assess your situation.
- Know your property and your business. Make sure you know the facts about the office building you’re pledging as collateral. How big is the office building? What kind of business or businesses occupy the space? How many people work in the building? All of this information will help your lender to evaluate your circumstances to further qualify you for the office building mortgage.
- Be prepared to discuss past financial obligations. A commercial lender will want to know how you’ve handled past business loans and mortgages. If you’ve had some financial issues in the past, be ready to talk about it with the lender.
- Be prepared to discuss the use of funds in detail. The commercial lender will want to know how you plan to use the money, whether it’s purchasing an office building to lease space to other businesses or refinancing your mortgage to improve a structure you already own. The more information you give the commercial lender, the easier it will be for them to finance your request for an office building mortgage.