Commercial Real Estate Loan Tips to Get You Ahead of the Game
January 30, 2018 |
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Whether you’re looking to purchase, refinance, or redevelop a commercial property, a Commercial Real Estate Loan from Dime Community Bank is the perfect option for you. Commercial mortgage loans are different from traditional residential home loans in a few key ways. Take a look at these quick tips and informative tidbits so you can find the very best commercial real estate loan for you and your business.
To ensure that you get the best rate on your commercial mortgage loan, make sure you pull together all relevant documents pertaining to your business. Having all of your documents — such as insurance quotes, tax bills, financial statements and so on — prepared ahead of time will create a favorable impression on the lender, which may make them more likely to give you a good rate. The Commercial Lending experts at Dime can help ensure you have all the documents you need to succeed.
A good, strong business credit history is also important when securing a favorable commercial loan rate.
Because commercial real estate loans are riskier for lenders, the terms are generally different from the residential loans you may be more familiar with. While most residential loans require a down payment of 5-20% of the property cost, many financial institutions require larger down payments, usually between 20-35% of the purchase price of the property. At Dime, we aim to make lifelong members by putting the terms in your favor—that’s why we will loan you up to 75% of the loan-to-value, which means your down payment could be as low as 25%.
Interest rates on commercial loans are also generally higher than residential loans, and there can be penalties or fees associated with paying off a loan early. At Dime, we pride ourselves on offering competitive fixed-rate and adjustable loans to fit your needs.
With most financial institutions, the term period for a loan is usually much shorter than the 30 years we see with most traditional residential home loans. Many financial institutions have term periods in the 5-20 year range. Dime offers a variety of term periods for our customers, with the lowest rates available on 5, 7, 10, and 15-year terms. We also offer amortization terms up to 30 years, which is unique in the industry.
Investing in a commercial property is an exciting way to grow your business. Trust the experts at Dime to help you get the most out of your Commercial Real Estate Loan. To learn more, or to get started on your Commercial Real Estate Loan, speak with one of our representatives today at 1-800-321-DIME (3463).