Purchasing commercial real estate is similar to purchasing residential properties, with the exception that the business is making the purchase, rather than an individual. Lenders do require qualified lenders to provide a down payment towards the purchase price of the property. The amount of the down payment will vary, based upon the purchase price of the property, as well as the type of commercial program for which you qualify through Commercial Lending Corporation. As a good rule of thumb, most commercial programs ask for at least 25 percent of the purchase price as a down payment. For example, if your purchase price is $1,000,000, you would need at least $250,000 for your down payment. Remember, this is just an example, and some programs may require a larger down payment, while others might require less.
You will have to provide details about your business during your loan qualification process. Your business has a credit score and history, just like your own personal credit file. For new businesses or business startups, lenders may also ask for your personal credit history, instead, since there would not be a credit file established yet for your business. Some lenders could require you to submit profit and earnings statements, projected earnings, tax returns, and other financial information specific to your business. Your loan representative at Commercial Lending Corporation is available to help offer assistance and let you know exactly what documentation and information you have to supply when you apply for your commercial real estate loan, as well as what programs are available.
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