About Commercial Mortgage Financing

June 13th, 2014 • By: AlamQ Commercial Financing, Popular, Tips

Commercial Financing – About Commercial Mortgage Financing

Cоmmеrсіаl mоrtgаgе fіnаnсіng іѕ аvаіlаblе fоr аll kіndѕ оf соmmеrсіаl рrореrtіеѕ. Buуеrѕ nееd mоnеу tо fіnаnсе араrtmеnt buіldіngѕ, соnvеnіеnсе ѕtоrеѕ, funеrаl hоmеѕ, gаѕ ѕtаtіоnѕ, hіѕtоrіс ѕіtеѕ, hоѕріtаlѕ, mоtеlѕ, іnduѕtrіаl раrkѕ аnd еvеrу оthеr соnсеіvаblе kіnd оf соmmеrсіаl рrореrtу оr buѕіnеѕѕ.

Whеn а роtеntіаl buуеr іѕ іntеrеѕtеd іn а соmmеrсіаl fіnаnсіng trаnѕасtіоn, hе оr ѕhе ѕhоuld ѕееk оut а ѕеrvісе-оrіеntеd lеndеr, whо hаѕ dеmоnѕtrаtеd еxреrtіѕе іn thе fіеld. Thе rіght lеndеr tо trаnѕасt соmmеrсіаl fіnаnсіng wіll bе аblе tо ѕаvе thе bоrrоwеr tіmе аnd mоnеу bу ѕtrіvіng tо gіvе thеіr сlіеntѕ thе fіnаnсіаl bеnеfіtѕ оf а hіghlу еffесtіvе trаnѕасtіоn wіthоut еxоrbіtаnt lоаn fееѕ.

Thе fіrѕt ѕtер іn соmmеrсіаl mоrtgаgе fіnаnсіng bеgіnѕ wіth а dіѕсuѕѕіоn wіth а bаnkеr аbоut thе роѕѕіbіlіtу оf рrосurіng thе nесеѕѕаrу fundѕ tо mаkе thе trаnѕасtіоn. It hеlрѕ tо hаvе аn еѕtаblіѕhеd rеlаtіоnѕhір wіth а mоrtgаgе bаnkеr, but thіѕ іѕ nоt а rеquіrеmеnt.

Cоmmеrсіаl rеаl еѕtаtе vаrіеѕ wіdеlу bу а numbеr оf dіffеrеnt fасtоrѕ. A рrореrtу іn а buѕу dоwntоwn buѕіnеѕѕ dіѕtrісt wіll nаturаllу bе mоrе еxреnѕіvе thаn а rurаl lосаtіоn wіth lіttlе fооt trаffіс. Thе ѕіzе оf thе рrореrtу аnd thе mаtеrіаlѕ wіth whісh іt wаѕ соnѕtruсtеd аrе аlѕо соnѕіdеrаtіоnѕ. Thеrеfоrе, іt іѕ ѕаfе tо ѕау thаt nо twо соmmеrсіаl mоrtgаgе fіnаnсіng trаnѕасtіоnѕ аrе thе ѕаmе.

A bаnkеr ѕhоuld bе аblе tо оffеr hіѕ оr hеr реrѕресtіvе оn а rеаlіѕtіс рrісе роіnt fоr thе trаnѕасtіоn, аѕ wеll аѕ оthеr іmроrtаnt аdvісе. Hе оr ѕhе ѕhоuld bе quеѕtіоnеd еxtеnѕіvеlу аbоut thе рrојесtеd саѕh flоw thаt wіll роtеntіаllу аrіѕе frоm thе trаnѕасtіоn, thе dоwn рауmеnt, рurсhаѕе рrісе аnd thе dеѕіrеd mоrtgаgе іntеrеѕt rаtе.

Thе bаnkеr іѕ nоt thе аutоmаtіс аnѕwеr tо thе fіnаnсіng dіlеmmа. Thеrе mау bе mоrе vіаblе орtіоnѕ аvаіlаblе. Thаt ѕаіd, іt іѕ nоt аdvіѕаblе tо аutоmаtісаllу dіѕсоunt оnе’ѕ lосаl mоrtgаgе bаnkеr. Thе роіnt іѕ tо сhесk оut аll оf thе орtіоnѕ thаt аrе аvаіlаblе аnd tо сhооѕе thе оnе thаt іѕ bеѕt ѕuіtеd fоr thе bоrrоwеr’ѕ ѕресіfіс nееdѕ. It іѕ а gооd іdеа tо соmраrе lеndіng rаtеѕ аmоng ѕеvеrаl fіnаnсіng орtіоnѕ аnd tо fіnd оut ѕресіfісаllу hоw muсh еасh іnѕtіtutіоn оr lеndеr іѕ wіllіng tо lеnd fоr thе сhоѕеn рrореrtу. Thе bоrrоwеr ѕhоuld аlѕо саrеfullу еxаmіnе thе tеrmѕ аnd ѕtruсturе оf thе mоnеу bеіng оffеrеd.

Onсе а lеndеr hаѕ bееn сhоѕеn, thе bоrrоwеr ѕhоuld mаkе аn оffеr оn thе ѕресіfіс рrореrtу іn quеѕtіоn. If thе lеndеr hаѕ bееn сhоѕеn іn аdvаnсе, thіѕ wіll mаkе thе рrоѕресt оf соmmеrсіаl mоrtgаgе fіnаnсіng fоr thе bоrrоwеr’ѕ оffеr mоrе аttrасtіvе tо thе lеndеr. Thіѕ hаѕ thе роѕѕіbіlіtу оf рrоvіdіng mоrе rооm tо nеgоtіаtе.

It іѕ іmроrtаnt tо nеgоtіаtе wіth thе ѕеllеr durіng thе fіnаnсіng рhаѕе оf а trаnѕасtіоn. Kеер іn mіnd, hоwеvеr, thаt thе ѕеllеr hаѕ сеrtаіn оbјесtіvеѕ wіth thе ѕаlе аѕ wеll, ѕо іt іѕ аdvіѕаblе tо nеgоtіаtе іn а wау thаt wіll рrоvіdе bоth thе buуеr аnd thе ѕеllеr wіth ѕаtіѕfасtіоn. Whеn nеgоtіаtіng wіth thе ѕеllеr, thе buуеr ѕhоuld kеер hіѕ оr hеr lеndеr uр оn аnу рrоgrеѕѕ frоm bеgіnnіng tо еnd ѕо thаt thе соmmеrсіаl mоrtgаgе fіnаnсіng wіll hаvе а gооd оutсоmе.

Commercial Mortgage Loans

April 15th, 2014 • By: AlamQ Popular, Tips

Commercial Loans for Properties

Commercial Mortgage Loans are specially tailored for purchasing property that can be used for commercial use, the expansion for current business premises, and any residential and commercial investment as well for property development.

Difference between residential loans and Commercial loans

If you are considering buying a property of four units or less, it is considered as a home loan. However a property of five units or more is considered as a commercial loan. Commercial mortgage loans can be obtained at different variable interest rates as compared to residential loans.

Commercial Mortgage rates

The interest rate of commercial loans is much higher as compared to the residential loans. This is quite obvious as commercial loans are considered risky by many bank lenders, as the ability to meet the repayments is dependant on the performance of the business. Therefore the rate of interest is charged after the lender has carried out a thorough assessment of your business proposal. If your business has a good standing and has shown stability over the years then you shouldn’t have much problem in securing a commercial mortgage loan. You can obtain a commercial mortgage loan for a standard period of 25 years with domestic property. It can also be as short as a ten year repayment term.

If you are considering buying a business property or expanding your current business you can take assistance of a broker like ProFunding Financial Services Inc., we can help you meet all your requirements and provide you a commercial mortgage loan that best suits you.

ProFunding Financial Services Inc. uses only the best lenders from worldwide to help you with your loan problems. We have pre-qualified these companies and set strict standards that they must educate you on your loan and not conceal any costs that you will incur.

If you are looking to refinance your home, get a new home loan or just using your equity to consolidate your debt then ProFunding Financial Services Inc. can help you find the right lender.
If you are worried that your credit is bad then please fill out our online form and we will have a specialty lender contact you and explain how you can get the loan that best suits you.

Commercial Mortgage Financing

April 11th, 2014 • By: AlamQ Popular, Tips

Commercial Mortgage

Ever wondered what you could do with a commercial mortgage? Well, to be quite candid, there is a plethora of ways to make use of a commercial mortgage. Such a mortgage can be used to finance many different types of properties, so let’s take a minute to review these properties. Of course, not all commercial investments are created equal. Some inherently involve more risk than others. As a result, some banks and financial institutions that offer commercial mortgages may or may not offer a product that finances one of the following. As always, it will be up to you to shop around and find a commercial loan broker that offers a commercial mortgage package that fits your needs.

  • Apartments – Great investment opportunities exist with apartments. Apartments serve as a great form of securitization for a commercial mortgage. They also prove to be great income properties, as apartments that are managed well can bring in positive cash flows at the same time as equity is being created.
  • Health Care Facilities – A commercial mortgage can also be used to finance health care facilities. Such an investment provided two distinct advantages. First, you are investing in a traditional business that has a growing market and customer base. Second, you are also making an investment in land and facilities that will appreciate over time, creating positive equity for you. Investing in this type of property and business is not so far fetched when you realize just how accessible a commercial mortgage really is.
  • Industrial – Though industrial spaces are neither glamorous nor thrilling investments, they are certainly valuable. Most lending institutions will offer some sort of commercial mortgage that allows for investment in industrial spaces. Such an investment typically proves to be a solid investment since industries are always growing and this type of space will always be needed.
  • Manufacturing – If you are interested in expanding your business and increasing your manufacturing capacity, a commercial mortgage may be the way to go. You can use a commercial mortgage to finance the expansion of your manufacturing facilities and thus grow your business in the process.
  • Warehouse – Not very many businesses can continue to grow and prove successful with no room for inventory. If you find your business is ready to take it to the next level, and you are short on warehouse space a commercial mortgage can help you as well. Many large lending institutions have a commercial mortgage designed to finance warehouse expansion, so don’t hesitate to contact your commercial loan broker today if you are ready to expand.
  • Retail Structures – Even retailers need financing to build new stores, increase their accessibility, and grow their business. When retailers are ready to fund a new project, they turn to a commercial mortgage as well.
  • Office Complexes – Office parks and buildings are financed the same way as all the others, with a commercial mortgage. Office complexes also prove to be great investment properties for investors in the real estate market, as the risk of vacancy in office complexes is much less than that of retail spaces.

You might have noticed a trend while you read this list. Indeed, a commercial mortgage can be used to finance just about any kind of commercial property. So when you are in the market for a commercial property, go visit your commercial loan broker.

History Of The Mortgage

April 11th, 2014 • By: AlamQ Popular, Tips

A Short History Of The Mortgage

Most people know what a mortgage is, due to the fact that many people have one. But, do you know how the mortgage itself came about?

Here is some basic history on the mortgage and where it came from:

In the beginning, a mortgage was just a conveyance of land for a fee. The buyer paid the seller a set rate, with no interest, and the seller would sign over the land to the buyer. There were usually conditions that had to be met before the land would be the property of the buyer, just like today, but usually it was based upon the assumption that the land would produce the money to pay back the seller. So, a mortgage was written due to this fact, and the mortgage stayed in effect no matter if the land produced or not.

But this old arrangement was very lopsided in that the seller of the property, or the lender who was holding the deed to the land, had absolute power over it and could do whatever they liked, which included selling it, not allowing payment, refusing payoff, and other issues which caused major problems for the buyer, who held no ground at all. With time, and blatant abuse of the mortgage system, the courts began to uphold more of the buyer’s rights so that they had more to stand on when it came to owning their land. Eventually, they were allowed to demand the deed be free and clear upon the payoff of the property. There were still steps taken to ensure that the seller still had enough rights to keep their interest safe and make sure that their money was paid.

In the U.S., some states have created their own version of the mortgage, which is why they are referred to as “lien states”. In England and Wales, the Law of Property Act of 1925 created a close parallel to the U.S.’s stance on mortgages. In 1934, mortgages began to be widely used again in the U.S., and the Federal Housing Administration helped to lower the down payments on homes to make it easier for buyers to purchase a home. During that time, around 40% of people in the United Sates owned homes. Now, that number is closer to 70%, due to the lower interest rates.

Although mortgages today have evolved into many different forms, they are still basically the same essential contract that they were in the beginning. Now, there are many more laws and regulations to help protect the buyer, seller, and creditor. There are also many different ways to lock in a low interest rate, you just need to talk to your mortgage broker about what the rates are now and what kinds of programs they offer to keep those interest rates low throughout the life of your loan.

Adjustable Rate Mortgage

April 10th, 2014 • By: AlamQ Popular, Recent, Tips

Another common type of home loan is the adjustable rate mortgage or ARM. With this type of loan, the interest rate will fluctuate depending on the 6 different real estate indexes. The interest rate changes so the lender of the loan gets a proper margin. That’s due to the fact that the indexes influence the cost of funding that loan in the first place.

Basically, your lender lets you take on a little bit of the interest risk instead of just the lender like in a fixed rate loan. This type of loan can be great if the interest on your home loan consistently falls for a long time. You don’t have to worry that much about the interest rates because even if they jump drastically, there are limits on how much your payments will increase.

These limits are called caps and mean that no matter the size of the interest jump, you won’t pay more than a
certain increase in a certain time period. As an example, let’s say a lender gives you an adjustable rate mortgage. It has a 1 percent cap for any 6 month time frame and a 4 percent total cap for the entire loan. Your payments can increase as much as 4 percent at the maximum until the loan is paid off. That’s not too shabby
if you consider when interest drastically drops, you save a ton of money.

Every area in the country has different interest rates so you should read up on it before you opt to go with an adjustable rate mortgage. Local newspapers usually include interest rates and predictions so that is a great place to go to keep an eye on things.