Commercial Mortgage Loan

COMMERCIAL MORTGAGE LOAN TIPS

Need a commercial mortgage loan?  Using C-Loans, you can submit your commercial mortgage loan application (takes just four minutes) to 750 different commercial mortgage lenders.  And C-Loans is free!  Click here to submit your commercial mortgage loan.

To get a commercial mortgage loan today, you should submit your commercial mortgage loan application to a number of different commercial banks.  Commercial banks are the lenders making most commercial mortgage loans today.  Most hard money lenders will also make a commercial mortgage loan.  Most of the other lenders, such as conduits, REIT's, savings and loan associations, thrift and loan associations, and CDO lenders will no longer make a commercial mortgage loan.  Therefore, a good credit borrower should submit his commercial mortgage loan application to a commercial bank.

The typical commercial mortgage loan application is not underwritten based mainly on the strength of the borrower.  Instead, the typical commercial mortgage loan application is underwritten based mainly on the net rental income of the commercial property.  What this means is that the net monthly income of the commercial property must be at least 125% of the proposed payment.  This ratio is called the debt service coverage ratio.  Debt service coverage - the ability to make the monthly payments - is the limiting factor for the typical commercial mortgage loan. 

When a bank underwrites a commercial mortgage loan, it will also look at the loan-to-value ratio.  This ratio must not exceed 75% in theory.  Right now the typical bank is so frightened by the prospect of making a commercial mortgage loan that it will limit the commercial mortgage loan to just 58% to 63% loan-to-value.  Braver banks will lend up to 75% loan-to-value.

The key to shopping for commercial mortgage loan is to use a commercial mortgage loan portal, like C-Loans.com.  A commercial mortgage loan portal allows you to complete one, easy, mini-app and then to submit it to hundreds of banks in the market to make a commercial mortgage loan.  Here are some tips that will help you place your commercial mortgage loan.
Tips for Placing a Commercial Mortgage Loan

1. When applying for commercial mortgage loan, always include some nice, color photo's of your commercial property.
2. If the borrower seeking commercial mortgage loan has good credit, you should submit his commercial mortgage loan to a bank.  Commercial banks are making most of the commercial mortgage loans these days.
3. A large commercial mortgage loan should be submitted to a large commercial bank.  A small commercial mortgage loan should be submitted to a small commercial bank.  Match the size of your commercial mortgage loan application to the size of the commercial bank.
4. Banks make most of their commercial mortgage loans close to home.  For example, you should take a San Francisco commercial mortgage loan application to a San Francisco commercial bank.  Local lenders are more comfortable because they know the area.
5. Banks like the borrowers on their commercial mortgage loan applicants to have lots of cash in the bank.  Consider refinancing the borrower's home before applying for commercial mortgage loan so that your borrower appears to have lots of cash in the bank.
6. When applying for commercial mortgage loan, use a commercial mortgage loan portal, like C-Loans.com, because you can easily submit your commercial mortgage loan application to dozens of different commercial mortgage lenders.

Need a commercial mortgage loan?  Using C-Loans, you can submit your commercial mortgage loan application (takes just four minutes) to 750 different commercial mortgage lenders.  And C-Loans is free!  Click here to submit your commercial mortgage loan.

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