There’s no shortage of commercial mortgage lenders and commercial mortgage brokers in California, but finding the right fit for your situation takes more than entering “commercial mortgage California” or "commercial lenders California" into a search engine. But it's a good start.

Like traditional home mortgages, California commercial mortgage loans are usually fixed-rate instruments, though the collateral–usually a commercial building—for commercial mortgage lenders in California is typically of higher value than the average home mortgage. California commercial property mortgage rates also tend to be higher than home rates, though the time terms, usually 20 to 30 years are similar.

California commercial lenders aren't just offering jumbo loans though: one of the most obvious differences between home and commercial mortgages is that commercial mortgage loans typically feature balloon payments earlier than the amortized life of the loan would suggest. To avoid surprises, it's crucial that your payment schedule fits into your business plan.

1. Look for the best commercial mortgage deals in California online.

2. Consider national commercial lenders, California commercial lenders, and regional lenders.

3. Ensure that the national or California commercial mortgage lenders that you're interested in are reputable.

Action Steps
The best contacts and resources to help you get it done

Use online search engines to comparison shop commercial lenders in California

Obviously your best mortgage solution involves more than finding the lowest rate, but mortgage search engines easily sift though large California commercial mortgage brokers and other commercial lenders in California to allow rough comparison shopping.

I recommend: Sites like iBank, C-Loans, Guide to Lenders and MortgageLoan.com are good places to start your search for commercial lenders in California.

Research local, regional and national banks for commercial mortgage lenders in California

Now that you've narrowed down your prospects and understand what rates and terms you're likely to face in your situation, delve into more detail. Don't focus solely on local offerings: there may be advantages to choosing regional or national banks for your California commercial mortgage loans.

I recommend: National commercial banks such as Citibank and Wells Fargo offer commercial mortgage products.

Research particular candidates via association groups

Association groups can help you get a feel for who's who in California commercial lending. Once you're down to a couple of top candidates do in-depth research on them.

I recommend: Try the California Mortgage Bankers Association or the California Bankers Association for local information.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Give the bank that already handles your business needs a shot at your commercial mortgage business. They may go the extra mile to get more of your business.
• •  Note any property restrictions included in the deal: To protect their loan, lenders often impose usage restrictions on the property. Make sure that the deal you make today won't hamstring you down the road.