Finding the Best Commercial Mortgage

Trying to source the best commercial mortgage for your company or business can be a frustrating and time consuming process. Many people approach commercial lenders thinking that the applications procedure is going to be the same as applying for a personal mortgage. This is simply not the case; if you are serious about finding the best commercial mortgage then you are going the need to employ the services of a commercial mortgage broker.

Why is Applying for a Commercial Mortgage so Different?

There are several key ways in which a commercial mortgage differs from a personal mortgage. The single biggest difference is also the one most often to be overlooked. A commercial lending establishment operates a far different set of acceptance criteria than a personal lender, without a full understanding of these criteria, which will often be different from lender to lender; it is unlikely that a commercial mortgage application will be approved.

A second and somewhat troublesome difference is in the form of the supporting documentation required by the lender to accompany the application. A personal or residential mortgage will require you to submit full details of the property you are interested in purchasing, along with proof of income and certain other legal documents. A commercial mortgage on the other hand, will require the additional documentation of a fully prepared business plan, which demonstrates the company's ability to make the monthly repayments to the lender, along with a full set of accounts which have been full audited and certified by an independent source. It is also highly likely that you will be asked to provide disclosure documents detailed information about every shareholder and company official. With this in mind, it is clear to see that finding the best commercial mortgage is far from simple.

When seeking the best commercial mortgage possible, that fits your requirements most closely, it is advised to employ the services of a professional commercial mortgage broker. Such a broker is equipped far better to deal with the draconian requirements of commercial lenders. A good broker will be able to assist you in creating and preparing the required documentation to accompany your mortgage application, and will also be able to search the lending market to find the mortgage products which suit you most fully. Once the broker has a short list of possible mortgages, he will then approach the lenders as a group, instead of individually, meaning one application process, one set of documentation and one point of contact. Your broker will keep you informed of events as they happen and will be on hand to offer advice and help should any problems arise. If you are truly serious about finding the best commercial mortgage, you definitely need to get in touch with a specialised commercial mortgage broker; their expertise and knowledge will enable you to acquire your mortgage with a minimum of fuss, with very little input from you, and in the quickest time possible.

Darren Horne is Managing Director of Best Commercial Finance Limited who are commercial mortgage brokers specialising in providing property development finance and short term bridging loans.