Now, the mortgage process can be a very stressful, worrying and timely affair for the majority of people, however the process can be made easier if the clients are more prepared from the off. Being prepared naturally leads on to efficiency and is more likely to lead to a successful efficient application.
In this article I will tell you from the experience I have gained from working in a mortgage processing team, the main areas to focus on when applying for a commercial mortgage, which will increase your chances of getting your commercial mortgage application processed more efficiently.
Honesty – I know that people may say ‘the odd white lie never hurt anyone’ but this is not true regarding an application for a commercial mortgage as this can cause further problems later in the process. So be 100% honest with questions asked about property value, credit history, personal details (e.g. accounts etc.) What ever your concerns are the lender can generally find away around them, remember they want to lend money as much as you want to borrow it.
Realistic- Be realistic about the amount that you require for the use of funds. This also relates to the rates that you may be quoted with reference to your security on offer for example, in context to the amount of LTV* available.
Preparation- Have an understanding that most mortgage applications will request certain specific documents relating to your application specifically but all requisitions will have standard documents to, which you can be prepared for:
- Who you are? Verified proof of ID or Originals
- Where do you live? Proof of residency e.g. Utility Bills
- What can you afford? Bank Statements / Business Accounts
- Value of Property? Value of security
Flexibility- The ability to realise that there might be problems from all parties involved in the application due to unavoidable circumstances. These can range from increased mortgage requirements later in the process to valuation value increase or decrease from the initial estimated value. Depending on what circumstances may arise be prepared that there is a possibility of a new rate being offered whether its better or for worse.
These points are here to give you an understanding of what to expect during the commercial loan process, so that the mortgage application process as a whole will go a lot smoother and be more efficient if the client or broker have an understanding of the process and the possible twists and turns that can happen.
*LTV – Loan to Value
Written by Toby Breeden,
Website: www.crystalmortgages.com
Here to help, so please check my extended bio and get in contact!!
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