Commercial Mortgages – What You Should KnowMap Man, · Categories: mortgages · Tags: business lending, business mortgage, commercial mortgage
If you are looking to borrow money for your business and it is your first time, you could be in for a surprise. It does not matter if you are borrowing capital for your business or simply to leverage equity on the commercial real estate, you will soon find out commercial mortgages processes are very different compared from the more common home mortgage processes. Business Mortgages, unlike the more common housing mortgages, are not supported by the government like in the case of Fannie Mae, therefore, a majority of business lenders are risk-averse. For this reason, they end up charging higher interest rates compared to home mortgages and many of these lenders will go a bit further by inspecting and analyzing the borrower’s business and commercial property(ies), which will serve as collateral for the loan.