Finding a new location for your place of business is exciting. Once you find it, there’s the matter of locking in the best deal on a commercial mortgage. As you consider different CloverMortgage options for commercial mortgage loans, do keep these four tips in mind. They will help you find a deal that’s easy to manage.
Be Open to All Kinds of Lenders
One of the first issues to address is looking beyond more traditional lenders. While it never hurts to see what they have offer, consider smaller institutions. That includes alternative lenders that could have some solutions that are ideal for your situation. Remember that researching and asking questions does not commit you to any one lender. What it will do is allow you to make a more informed choice of which lenders you want to consider.
Go Over All the Terms and Conditions Carefully
As part of your research, make sure there’s no confusion about the terms and conditions found in the mortgage contract. You want to be clear on not only the rate of interest but how it applies to the loan balance. Identify any type of fee or charge that is applied at the time the mortgage offer is accepted. You also want to find out if there are any recurring fees that are included as the loan term progresses.
The presence of fees and charges is not unusual. By identifying each one and projecting the impact on the amount that you ultimately pay for the financing, it’s a little easier to determine which loan offer would be more cost-efficient over the long run.
Make Sure You Know How Long It Will Take to Process the Loan
Part of marketing commercial mortgage loans is to set expectations for a speedy processing. That’s where you will need to read the fine print and see what is actually likely to happen. It’s true that some lenders who promote one calendar month as the duration needed for processing a loan actually follow through with that. Others who estimate a month could end up taking several months to release the funds. Always make sure you’re getting a firm commitment rather than estimate that may or may not come to pass.
Have a Plan to Cover the Payments If the Business Hits a Bump in the Road
After finding and being approved for a great deal, there’s something that you need to do on your end. Establish a contingency fund that will allow you to continue making the mortgage payments even if your collected revenue is down for a few months at a time.
This is not just something that companies with seasonal shifts in business volume should do. Even if your operation tends to have close to the same volume every month, unanticipated events can change things. By having a cushion devoted specifically to making the loan payments, you have a better chance of riding through the temporary downturn and emerging ready to take advantage of a return to plenty of customer orders.
Now is the time to start comparing your Toronto mortgage brokerage solutions and find the financing that will serve you and the business properly. Take your time, project the outcome of each offer, and make sure you have a way to make the payments no matter what. Doing so will ensure that the relationship between you and the lender remains cordial.