How good does my credit have to be if I’m buying commercial property?

If you’re considering buying or investing in commercial property it’s best to know the details and requirements ahead of time. Typically, lenders require a little bit stricter credit history and report but if you’re purchasing a residential property. A longer good standing credit report and history will be very beneficial in improving to the lender that you are a serious investor and a low risk for the lender.

What will the lender look for when purchasing commercial property?

The lender will want to make sure that this is a good investment not only now but in the future as well. Lenders want to see what you’re planning on doing with the property and want proof of profits to come. If you have a poor credit rating or simply do not have reserve fund set aside, lenders feel that you are a high risk borrower and may be very hesitant to loan you the money to purchase the property. If you’re looking at purchasing a business, the lender will want to make sure that there are profits coming in now and in the future so that you will be comfortable in paying back the debt.

Requirements that you will need to purchase property.

Lenders will make sure that you don’t have any other debts that will take priority over this commercial loan. They want to guarantee that your budget is not overwhelmed and overloaded with other debts, loans, Orleans and that you will be persistent in paying off the debt to them first. Whether it’s a business, property, development, or vacant land, lenders will want to know what your future plans for the property or business will be.
Be sure to find a commercial property lender that deals solely with industrial loans. Residential loan offer services don’t typically have the know-how or the experience to handle a commercial loan. Commercial loans are much larger loan and have different requirements for approval. Talk with your lender, your real estate agent, or real estate attorney for more information and accurate answers to some of your most important questions for your area.

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