When looking to buy real property, developing or expanding your current premises, you should consider taking out a precise advance. It would be great to get an Atlanta commercial property loan to help you in making your dreams true. It would be important to learn some important facts about this option though.
Since you are the borrower, you will have the option or freedom to choose the most suitable repayment period that ought to fall between 2-30 years during the application process. You must ensure that you also have adequate security to cover this advance. You will only be able to access a certain percentage of the full value of the security you offer.
You can be able to offer your land, warehouse or even the commercial building you own as your security. The proceeds you usually get from them will be instrumental in settling the monthly repayments. If the security you offer has several uses then it will be up to the lender to decide on the options they will avail to you.
It will be important to make sure that your personal and business record is also at an all time high. Credit history is vital for these companies and they always consider it plus the assets you own to decide if they will be sufficient to cover the total credit amount that will be left when you default. You must also prove the profitability of your business.
It will be important to prepare to pay off some huge down payment before you access the facility you need due to the high risks involved. Most institutions demand for about 30 to 40 percent of the whole value of the purchase and get financing on the rest. This is the most common ratio of credit to value used by most lenders.
If you opt for prepayment before the maturity date of the financing agreement, you will need to know the various restrictions set by the lending institution. These restrictions are usually designed in order to preserve the anticipated yield from the credit that was advanced to you by the lender. You will have to pay certain prepayment penalties.
Before your whole loan application process gets approval, you will be needed to prove to the lending company that you have a solid income stream. You would also need to prove that your management team has a good profile as well as the building blueprints and plans. Just in case you have a single tenant on them, they must demonstrate that they have the requisite financial strength to cover their rents as they are considered part of business.
Since you are the borrower, you will have the option or freedom to choose the most suitable repayment period that ought to fall between 2-30 years during the application process. You must ensure that you also have adequate security to cover this advance. You will only be able to access a certain percentage of the full value of the security you offer.
You can be able to offer your land, warehouse or even the commercial building you own as your security. The proceeds you usually get from them will be instrumental in settling the monthly repayments. If the security you offer has several uses then it will be up to the lender to decide on the options they will avail to you.
It will be important to make sure that your personal and business record is also at an all time high. Credit history is vital for these companies and they always consider it plus the assets you own to decide if they will be sufficient to cover the total credit amount that will be left when you default. You must also prove the profitability of your business.
It will be important to prepare to pay off some huge down payment before you access the facility you need due to the high risks involved. Most institutions demand for about 30 to 40 percent of the whole value of the purchase and get financing on the rest. This is the most common ratio of credit to value used by most lenders.
If you opt for prepayment before the maturity date of the financing agreement, you will need to know the various restrictions set by the lending institution. These restrictions are usually designed in order to preserve the anticipated yield from the credit that was advanced to you by the lender. You will have to pay certain prepayment penalties.
Before your whole loan application process gets approval, you will be needed to prove to the lending company that you have a solid income stream. You would also need to prove that your management team has a good profile as well as the building blueprints and plans. Just in case you have a single tenant on them, they must demonstrate that they have the requisite financial strength to cover their rents as they are considered part of business.
About the Author:
Tom G. Honeycutt is a full-time real estate entrepreneur in Atlanta, GA. Tom helps readers by providing practical and useful knowledge to better understand lending choices. If you are looking for Commercial Property Mortgage he recommends you check out www.ifundinternational.com.
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