In the process of applying for a commercial real estate loan, and want to give yourself the best chances of approval? Then you need to try and avoid making common mistakes when choosing a Florida commercial lender and applying for a suitable loan. Let’s go over some of those possible mistakes now.
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- Not having building plans. If you are applying for a loan for a commercial construction project, it is important to work with your contractors to draft up a clear building plan before you apply for financing, rather than after. Having actual building plans with you which you can submit along with your other documentation during the loan process shows that your goals are serious and specific and increases your chances of approval.
- Not having business plans. Whether you are trying to finance a construction project or not, it is also important to have written business plans concerning how you plan to use the real estate that you are financing. If you do not have formally written plans yet, consider drafting them before speaking to a lender.
- Having an indefinite timeframe. Commercial real estate lenders do not like to hear that you will “eventually” build a structure on some vacant land you are trying to finance or “plan to” achieve other business goals with a financed building in some indefinite future. Get specific with the timing for your intentions. Have a schedule which shows what you plan to do over the coming weeks, months and years to make use of your commercial real estate investment.
- Not showing adequate cash flow and investment. You should be able to document a healthy cash flow in your business. Ideally, you also should be putting some percentage of your own money into the acquisition of your commercial real estate. If you are not willing to invest some of your own money, a lender may wonder why they should be investing theirs in your project. Plus, the larger down payment you can make, the more competitive terms you may qualify for.
- Walking in with missing documentation. The more documentation you can provide when you are applying for your commercial real estate loan, the faster and easier it will be to process your application. If there are gaps in your documentation, there will be delays as you are asked to provide the missing paperwork. Showing up as prepared as possible also helps to make the right impression.
- Not working with a Florida commercial mortgage broker. Finally, you should consider working with a commercial mortgage broker in Florida rather than a direct lender. Doing so will allow you to submit your application to the entire network of lenders which work with that broker. That means more chances for approval at more competitive rates.
Apply for a Commercial Real Estate Loan with Lending Bankers Mortgage, LLC Today
If you’re ready to get the fast, flexible commercial financing you need for your ventures, please give us a call today at (786) 220-1100 to schedule a consultation.
Unlike many other mortgage companies, we do not handle commercial loans on the side; they are our specialty. As a mortgage broker, we can connect you with an ideal loan through our extensive network of competitive lenders. We look forward to working with you.