Obtaining a Commercial Mortgage For Purchasing Property
The investment boom of the nineties taught investors as well a lenders some very expensive lessons. Mistakes that were made by lenders then are being more carefully avoided now by requiring the worth of the building to be at a percentage not greater than eighty percent. Speculation on the value of the property in the future is not the deciding factor as it once was. For the majority of the commercial mortgages the interest is what is paid for the life of the loan, which is generally ten years, and the principle comes due at the maturity of the loan. It was thought back then that the value of the properties and the income they received would justify refinancing the loan. When this did not happen, many lenders lost money on the investments.
Requirements have become stricter for mortgages in New York, whether for private property or commercial mortgages. The property value is one factor, and the income of the borrower is another. Documentation will be required to secure any type of loan, and this is where many turn to a mortgage brokers to assist them in their financial goals.
Purchasing commercial property is a major decision and should not just be handed off to the first lender the borrower seeks out. We at Velocity Commercial Funding have been helping thousands of people in finding the best mortgages in New York possible since 1993, at the best terms for their budgets.
Velocity Commercial Funding is an investors best bet when it comes to finding the most profitable way to finance any commercial property. We have the contacts with lenders that every investor needs to ensure a profitable venture when starting out in commercial real estate investing.
Contact us today at (800) 984-6830 or email us here to get more information.
*This product is not regulated by the New York State Department of Financial Services