Commercial Mortgages In The Uk

Commercial Mortgages in​ the​ UK
Guide to​ Commercial Mortgages
It’s important that you​ understand what to​ expect when applying for a​ commercial mortgage,​ all too often business owners need money quickly and accept the​ first deal they find .​
When considering which commercial mortgage to​ choose you​ should take the​ time to​ fully research the​ options open to​ you​ .​
Educating yourself about commercial mortgages can help you​ avoid common pitfalls.
Building a​ solid foundation of​ knowledge about the​ commercial mortgage borrowing process is​ important .​
Here are a​ few steps to​ help you​ begin your journey:
Before you​ apply for a​ commercial mortgage try to​ find out as​ much as​ possible about what’s available in​ the​ market place.
Gather all your financial documents; check your company’s credit history and fix any blemishes on​ your credit file before you​ apply for a​ loan.
If you​ have any accounts make sure they are available,​ if​ you​ are starting a​ new business then a​ basic business plan is​ invaluable.
Determine how much you​ can truly afford to​ borrow,​ create an​ accurate budget and cash flow.
Keep accurate notes; make a​ file and keep all loan documents and correspondence in​ that file.
Once you​ have established that you​ need a​ commercial mortgage start shopping for a​ commercial lender or​ broker and be prepared to​ compare costs .​
Be suspicious if​ anyone tries to​ steer you​ to​ just one lender .​
Don’t be afraid to​ find out which commercial lenders they work with and ask them to​ justify their recommendation.
Whether you​ have credit problems or​ not,​ it’s a​ good idea to​ review your credit report for accuracy and completeness before you​ apply for a​ commercial mortgage .​
If there is​ inaccurate information in​ your credit report you​ should attempt to​ correct it .​
More information about a​ businesses financial affairs is​ available to​ lenders now,​ so it​ is​ important to​ ensure that this information is​ correct.
If your credit report does contain negative information,​ that is​ accurate,​ but stemming from unique circumstances such as​ illness or​ temporary loss of​ income,​ be sure to​ explain your situation to​ the​ lender or​ broker .​
Don’t assume that the​ only way to​ get a​ commercial mortgage is​ to​ pay a​ high price.
Before you​ start shopping for a​ commercial mortgage you’ve got to​ work out how much you​ can afford to​ pay each month .​
You can do this yourself before applying for a​ commercial mortgage by calculating your costs and determining your financial worth .​
Commercial mortgage calculators are available online and can be a​ tool to​ helping you​ determine how much you​ can afford.
However,​ just knowing the​ amount of​ the​ monthly payment or​ the​ interest rate is​ not enough .​
When comparing commercial mortgages,​ make sure you’re reviewing the​ same information in​ each loan such as​ loan amount,​ loan term,​ type of​ loan,​ monthly payment,​ penalties and features.
A commercial mortgage often involves many fees,​ such as​ administrative fees,​ broker fees and transaction fees there may also be early settlement charges,​ and third party costs .​
Every commercial lender or​ broker should give you​ an​ estimate of​ its fees when you​ apply for a​ commercial mortgage.
TIP: Ask about the​ commercial mortgage’s annual percentage rate (APR) .​
The APR takes into account not only the​ interest rate but also setup charges,​ broker fees,​ and certain other credit charges that you​ may be required to​ pay,​ expressed as​ a​ yearly rate .​
This will specifically tell you​ the​ cost of​ what you’re borrowing and will allow you​ to​ compare the​ costs of​ one loan to​ another.
TIP: Never take a​ verbal promise on​ any detail or​ feature of​ the​ loan that matters .​
You’ve a​ right to​ receive commitments in​ writing and a​ professional should never hesitate to​ provide this .​
If your lender is​ unwilling to​ put his promises in​ writing,​ you​ should not rely on​ those promises.

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