Guide to Commercial Mortgage Lenders in Tennessee

Finding Tennessee commercial mortgage lenders is easy; finding the right one takes some work
By J. Simonetta

As a business owner, it's not hard finding commercial mortgage lenders in Tennessee. What's harder is finding a commercial loan in Tennessee with the best combination of rates, lowest fees, least onerous covenants and best repayment schedule for your business. Unfortunately for business owners, commercial mortgage brokers in Tennessee usually offer rates higher than those available for home mortgages.

Commercial mortgage lenders in Tennessee provide mortgages that often feature a balloon payment that falls due before the amortized life of the loan. For example, a typical repayment schedule may have you initially paying off the loan at rate that would pay the mortgage off in 30 years; however, a balloon payment may be required at 10 years to pay off the note. Tennessee commercial lenders refer to this as a 10/30 loan. When arranging for commercial mortgages in Tennessee,

1. Compare Tennessee commercial mortgage lenders by interest rate and terms.

2. Consider national mortgage lenders, in addition to Tennessee commercial lenders.

3. Find someone with a good reputation for commercial lending in Tennessee.

Action Steps

The best contacts and resources to help you get it done

Compare deals from several Tennessee commercial lenders Commercial mortgage brokers in Tennessee can offer many options regarding lending source, length of mortgage and size and timing of balloon payment. The lowest rate is great, but it's not worth saving a fraction of a point if the terms of the loan make no sense for your business. Use one of the online mortgage search engines to simplify your search for sources of commercial lending in Tennessee.

I recommend: Online mortgage search engines like iBank and MortgageLoan.com are good places to start.

Research national, regional and local commercial mortgage companies in Tennessee Some business people focus on smaller Tennessee commercial lending companies while excluding larger national lenders; others do the opposite and look only at national lenders while excluding commercial mortgage lenders in Tennessee. Do yourself a favor and don't limit your search yet.

I recommend: Try national commercial brokers like Green Door Funding and All Options for a broad search.

Make sure the Tennessee commercial lending companies you're interested in are reputable Once you've done your research and narrowed down your list of possible commercial mortgage providers in Tennessee, make sure that your top candidates are reputable and have experience in your line of business.

I recommend: Check with Tennessee Mortgage Bankers Association if you want to check up on your selection.

Tips & Tactics

Helpful advice for making the most of this Guide

Give your current bank a shot at your Tennessee commercial lending business. When you find the best deal you can online, take it to your business banker and see if he can match it or beat it. If he can, you have the added convenience of doing all your banking in one location.
Don't paint yourself into the proverbial corner. Pay close attention to the property usage restrictions and covenants your Tennessee commercial lender includes in your mortgage.