Learning how to refinance a commercial property will save you a tremendous amount of money as a business owner. A few popular reasons why people refinance include lower interest rates, decreased loan terms, and escaping adjustable-rate mortgages. As a commercial business operator or investor securing a stable, consistent, decent rate for your small business is essential.
Think about all the money you can save by checking out your options. Now, I know this info has you pretty excited about exploring your opportunities to find the best rates for your commercial mortgage but before you make a decision you need to know exactly how to refinance a commercial property.
This blog will tell you everything you need to know whether you’re a beginner or someone looking to refinance an already existing mortgage.
Gather all Business Financial Documents
Knowing how much your business made in the past year or up to 5 years is crucial for a commercial broker to get you the best mortgage rates. Next, you need to consider your credit history, having an excellent credit score (over 650+) is also a key factor in securing a decent mortgage loan/refinancing the loan you already have.
Maybe you have a Balloon Mortgage loan that continues to go up over the years, or maybe you had to settle for a less than perfect commercial mortgage loan because your credit and small business wasn’t as profitable as you were hoping.
Either way, finding a new refinanced loan will cut costs down the line and provide you with peace of mind.
You’ll also need:
- photos of the property
- subordinate property agreement (if you have one)
- current property insurance
- information on paying off the existing mortgage
- Capital Improvements
Research Potential Companies and Brokers
You can look for a bank that offers commercial loan refinancing or you can find a reputable Broker to work with. In addition, if you want an individualized experience with someone well versed in business financing and finding the best loan for your company, you should go with a Mortgage Broker.
Here are a few benefits of working with a mortgage broker over a bank or institution:
- Saves you time + money
- Gets the best deals for you through their many connections
- Optimal Flexibility
- Personalized Experience
You can also take a look at each of the different commercial loan options:
- Blanket Loans
- Fixed Mortgage Rate Loans
- Construction Loans
- Hard Money Loans
- Bridge Loans (great for short-term + construction)
What Else Should I Know About Commercial Refinancing?
Know that different commercial properties have different loan options. This is because each type of commercial property is vastly different. That is to say, each of these areas yields different outcomes depending on the industry you’re from medical buildings, apartments, office spaces, industrial warehouses, and rental buildings you’ll find each area has certain requirements and loan terms.
In conclusion, remember, finding the best financing, a trusted commercial loan broker and providing credit history are the most important aspects of starting your journey to refinancing your business. There’s a lot to consider but you should be encouraged because this is the beginning of a new start for your business.
To learn more about which commercial loan will work for your individual needs reach out to us. We’re happy to help you secure viable funding/refinancing:
Keith McLaurin | Licensed Commercial Broker ID#01190109 / NMLS#1209195