Commercial Mortgage in Mesa
If you’re a business owner shopping around for an income property, the commercial mortgage brokers at Pilot Mortgage LLC can help. We’ll connect you with leading lenders and help you find the best commercial mortgage rates on terms that match the needs of your business. We can provide you with in-depth explanations, reliable advice, and outstanding client services.
Get in touch with our skilled mortgage professionals at (480) 320-2322.
What Does a Commercial Mortgage Mean?
Much like a residential mortgage, a commercial mortgage is a loan used to finance real estate. In this case, the mortgage loan is taken out and secured by a property other than a dwelling.
A lender will provide funding for an income property, and secure their repayment by using the property as collateral. If the borrower cannot make their mortgage payments, the lender may seize and resell this asset.
How Does a Commercial Mortgage Work?
When you’re in the market for a commercial mortgage, it is essential to know the workings of the mortgage process. Lenders will need to assess how you meet specific criteria to find you eligible for a commercial mortgage loan. The qualification factors consist of the following:
- Debt-service coverage ratio
- Credit history
- Long-term financial security
- Property type
- Down payment
Most lenders will look at your company’s debt-service coverage first, as this is how they check whether you have the net operating income to make the expected mortgage payments. Our mortgage brokers will be happy to go over these qualifications with you in-depth, and we’ll make sure all your information is in order.
What Deposit Is Needed for a Commercial Mortgage?
A deposit or down payment is necessary to acquire a commercial mortgage. Lenders will expect a deposit of anywhere from 25% to 40% of the property market value.
For mortgage lenders, a commercial loan is always risky because there is a high incidence of businesses going under and being unable to repay their mortgage. A significant deposit helps build trust between the lender and borrower— a business that can put down this kind of money upfront is more likely to follow through completely.
Talk to our mortgage brokers to figure out how much a feasible down payment would be for your business.
How Many Years is a Commercial Mortgage?
A borrower can expect a commercial mortgage term to last anywhere between 3 to 20 years, with the high end of this range being less common. According to statistics, the average business loan term is around 10 years at most.
Get a Commercial Mortgage in Mesa
When it comes to getting a commercial mortgage to finance a business property, Pilot Mortgage LLC is the top brokerage firm in the business.
Not only will we guide you through the process of qualifying and applying for a mortgage, but we’ll be sure to secure the best deals on commercial mortgages in Mesa.
Contact us now at (480) 320-2322 to book a no-obligation consultation and get started.