Commercial Mortgages credits purchase of real estate business

Commercial Mortgages credits for the purchase of real estate business-High rents force you to think about the purchase of commercial real estate in the property? However, to withdraw a large sum for the purchase of the turnover of your business does not want to or just is not possible? Then the business mortgage perfect option for you. Try to understand the conditions under which banks are willing to grant the company a loan.

Commercial mortgage – is to buy non-residential premises in a loan secured by the acquired property or bail Commercial premises owned by the borrower. To obtain the mortgage business for small businesses are required to provide to the bank: legal documents (certificate of registration and tax registration), the main documents of the borrower (tax returns, reporting, turnover balance sheets).

But there are some difficulties due to insufficient study of legislation. The law “On mortgage” refers only to residential property, a commercial – not a word. When commercial mortgage borrowers are prohibited to issue a mortgage on the property purchased before the conclusion of the sales transaction. That is, first the bank gives us the borrowing money to purchase real estate, then the buyer takes ownership and only then executed bail. And between the procedure of loan collateral and getting there are risks for the bank, because of this, not all banks provide commercial mortgages.

Otherwise, the loans for the purchase of non-residential premises are similar to mortgages to buy a home. Getting such a loan involves making an initial payment for the acquired property, as well as its evaluation and compulsory insurance. The term of such loan – up to 10 years, the initial installment – 15% of the cost of the acquired property, interest rates – 9-17% per annum.

Requirements to apply for mortgage loans

Do you know what are the requirements to apply for mortgage loans? Each financial institution applies different requirements and presents the most common:

age: The minimum age is 18 years and the maximum of 65-varies according to each institution and the type of product you have requested.

antique household and labour: it is necessary to demonstrate that it has lived for at least 6 months at your current address and that you have at least 12 months to work in your company.

level of income: the institutions that grant loans considered as maximum 33% of total revenue as payment of the monthly payment, i.e., if his salary is $10,000 a month (without taxes), it is recommended that your monthly payment will be $3,300.

verification of income: If you is paid, must verify their income with receipts of payroll. If it is not paid, will be held a socioeconomic study in his home and place of work.

credit history: salaried or not, it is essential to have a good credit history. A good history reflects its responsibility and perseverance in payments. You can view it for free once a year in the credit Bureau.
questionnaire and medical examination: in some cases you will need to undergo a general medical examination.

have bank account: If you have a savings or checking account you will be easier to organize your payments and check the details of their movements.

Fund credit: these institutes take into account his age, the amount accumulated in your sub-account for housing, his salary and his seniority.