Negosentro | How to Get Quickly Approved for a Commercial Real Estate (CRE) Loan | The market of commercial real estate can be quite competitive at the best of times. Investors and potential property owners need to be ready to move quickly when the right deal comes up, and this means being prepared to sign the papers. If you’re currently shopping for commercial real estate, one of the best tips is to learn how you can position yourself so that you’re able to be approved for a CRE loan quickly. This can be the difference between getting the property or losing out to another buyer who was better prepared.
With that said, here are some simple steps you can use to ensure you’re quickly approved for a commercial real estate loan.
Be Prepared to Show How Profitable Your Company Is
The first thing you’ll need to do is go over the numbers and determine how profitable your company is. Any lender you speak to will want to see the profitability. Not only does being profitable help, but ideally your company is also showing signs of growth. If any criteria can make or break your chances of being approved, profitability is it.
All Paperwork Should be Organized
It’s one thing to say your company is profitable but you need documents to back that claim up. This means collecting and then printing all the necessary reports, data, and statements that the lender may ask for. Gathering this information last minute will only prolong the approval process, which could cost you the property.
Understand the Different Types of Loan Terms
While looking for a loan, there’s no doubt you’ll encounter an array of financial terminology. They are likely terms you don’t use in your everyday life, so it’s wise to familiarize yourself with them in advance. This allows you to find the terms that best suit the company’s needs. Some of the more common terms you may come across in the loan term documents include:
- Term loan
- Loan-to-value ratio
- Bank flexibility
- Amortization period
Choose a Lender that Has Embraced High-Tech Solutions
Part of speeding up the process is choosing a lender that can quickly get things rolling with the approval process. Some lenders have realized that high tech tools and software allow them to do just that. Automated underwriting software is something that many lenders are now using as it’s able to do all the number crunching, gather the data and even read the document. Just think how much that can speed up the overall process, which helps you to get approved quickly.
Does the Property Meet Current and Short-Term Future Needs?
Finally, you want to ask yourself if the property meets the company’s current and short-term future needs. Purchasing a property that is too big just means you’re taking on added expenses unnecessarily. If you end up needing more space 10 or 15 years from now, you deal with it at that point.
By using these tips and information, you’ll be as prepared as possible and ready to make a deal when the right commercial real estate property comes along. This means a faster approval process.
