| Unlike residential loans, commercial loans require more | | | | represents several lenders, and will submit the |
| robust credit and down payment from buyers. | | | | application to a lender he believes most appropriate for |
| Typically the terms of these loans are less attractive | | | | the situation. Representatives for banks and other |
| than residential properties. While these impediments | | | | lending institutions usually represent only one institution, |
| reduce the number of qualified commercial real estate | | | | and will submit the application to that institution. There |
| buyers, there are many investment trusts and | | | | are advantages to each type. The lender will verify the |
| corporations fully capable of qualifying for and carrying | | | | statements of assets, liabilities, employment, and salary. |
| such debt service successfully.Borrowers will be faced | | | | The subject property will be appraised.The loan |
| with a large variety of available loans. In the beginning, | | | | approval takes about 20 to 30 days on an average. |
| a deposit receipt needs to be provided which | | | | The actual time depends upon how quickly the lender |
| represents the terms of purchase of a commercial | | | | can process the application, get the appraisal, and |
| property. It will list the amount to be financed, estimated | | | | obtain verification of employment and bank balances.A |
| interest rates and terms of the loan. A loan is applied | | | | commercial loan eases the burden of paying huge |
| for by completing a loan application with a mortgage | | | | sums of money at a single instance. Finance options |
| broker or loan company. There will be a | | | | spread the paymet towards the loan amount over a |
| non-refundable loan application fee, usually around | | | | period of 25 to 30 years. New businesses are |
| $200 to $400. A commercial mortgage broker | | | | increasingly opting for commercial real estate loans. |