The terms used to underwrite your loan from Commercial Lending Corporation might seem confusing to some people. As with any loan program, it is worth your time to read through the loan contract to ensure you fully understand the terms and conditions. You should also review the repayment terms, interest rate, and other details to verify you are aware of your financial obligation. Fortunately, CLC and their team of experienced underwriters are there for you throughout the entire process. At any point, if you have questions, concerns, or other items you are unclear about, you are able to get answers directly from your loan consultant or underwriter.
One item you may have further questions about is how a fixed rate loan with a balloon payment works. Many people automatically assume they have to make a single large payment at the end of the loan contract to pay it off. Typically, this is not an issue, as the loan is used as a short term solution, like for a new construction project or a new product launch. However, sometimes things do not always go as planned, and you might not have enough funds to fully satisfy your final payment. What you may not realize is there can be other options available. For example, with a 5 year fixed balloon loan, you make payments over the course of the five years. Once you reach the final payment, you could be able to refinance the remaining balance into a longer term fixed rate conventional loan program with Commercial Lending Corporation.