When you want to buy commercial property, a fixed rate mortgage is the best choice for many business owners. With a fixed rate house loan or commercial loan, you will always know how much your monthly payment will be. It never changes over the lifetime of the loan.
For business owners, this is good news because it helps with your financial planning. You will always know how much to budget for your mortgage each month. Adjustable rate mortgages, on the other hand, can change over time, so you may suddenly find yourself with a higher monthly payment.
When you are looking for a fixed rate mortgage provider, make sure to prepare:
1. A down payment. Almost all lenders will want to see some type of down payment before they will give you a real estate fixed rate mortgage. Typically, this should be between 5-20%.
2. A good credit score and business plan. Banks want to be sure that you can repay your fixed-rate house mortgage or commercial mortgage. They do this by looking at your credit history and business plan.
3. An income statement. This shows that your business has the funds to repay your fixed rate mortgage.
Get the best rate on a fixed rate mortgageOne of the keys to getting the best rate on your mortgage is to compare the rates that various lenders offer. Understand, though, that websites compare averages. Your rate may be higher or lower based on your credit history.
Find fixed rate mortgage providers to loan you the money that you needHaving the right location can make or break your business. Talk to lenders so that you can finance the location of your dreams.
Get a fixed rate mortgage from a company that specializes in commercial mortgageCommercial and residential mortgages can be very different. Many business owners find that it's best to work with a company that works only with commercial mortgages. They have the experience necessary to make things flow smoothly.
- If you're having a hard time finding a company to give you a fixed rate mortgage, ask them the reasons why they are turning you down. You may be able to remedy the situation with the next lender.