When you’re ready to apply for a commercial mortgage, there are several documents you’ll need to gather and provide to the lender. These documents help the lender understand your financial situation and evaluate your eligibility for the loan.
Here are some of the documents you’ll typically need to provide when applying for a commercial mortgage:
Business financial statements: You’ll need to provide financial statements for your business, including income statements, balance sheets, and cash flow statements. These statements should cover the past two to three years and should be prepared by a certified public accountant (CPA).
Personal financial statements: You’ll also need to provide personal financial statements for each business owner. This includes information about your assets, liabilities, and net worth. Again, these statements should be prepared by a CPA.
Tax returns: You’ll need to provide personal and business tax returns for the past two to three years.
Business plan: Lenders will want to see a business plan that outlines your company’s goals, operations, and financial projections. Your business plan should also explain how you plan to use the loan proceeds.
Property information: You’ll need to provide information about the property you’re planning to purchase or refinance, including the address, purchase price, and any existing leases.
Appraisal: Lenders will typically require an appraisal of the property to determine its value.
Environmental report: If the property you’re purchasing is potentially contaminated, you’ll need to provide an environmental report to show that it’s safe.
Legal documents: You may need to provide legal documents such as a purchase contract or lease agreement.
It’s important to note that these requirements can vary depending on the lender and the type of commercial mortgage you’re applying for. For example, you may need to provide additional documentation.
In any case, it’s a good idea to work with an experienced commercial mortgage broker who can help you navigate the application process and ensure that you’re providing all the necessary documents. By doing so, you’ll increase your chances of getting approved for a commercial mortgage that meets your needs.
