James McLandress Consultants specialize in long-term commercial loans and are able to offer a great commercial mortgage rate for businesses and investors. James McLandress recognizes that business people and investors need to focus on building their business rather than searching for the best commercial mortgage interest rate. Typical commercial loan sizes range from $100,000 to $15,000,000. James McLandress has developed a roster of commercial mortgage lenders in order to provide you with the best rate for your mortgage.

Our fund sources include traditional banks/credit unions/lenders as well as private funds. Our commercial mortgage loan rates will depend on the deal and the location of the property. Our commercial broker fees are based on the difficulty, complexity, size and risk of the transaction.

When applying for a commercial loan/mortgage, most borrowers tend to look for the best commercial interest rate. However, there are other mortgage features that are important as well, such as security and personal guarantees.

When it comes to security requirements, most business owners feel they have to live within their current lender's guidelines. For the most part, the commercial lenders want the property to cover the holding cost through rental/lease income. However, there is a wide variation of collateral coverage between various financial institutions. The level of personal guarantees is also an important feature that many borrowers may neglect to consider.

Commercial mortgage underwriting is more complex compared with residential mortgages. Each mortgage application is evaluated on a case-to-case basis. However, there are variables which affect the commercial mortgage rate, and most lenders will focus on such things as the following:

This is the ratio of the loan amount compared to the appraised value of the property. The lower the loan-to-value ratio, the lesser the risk to the lender and the better the commercial mortgage interest rate will be. In general, commercial lenders require a lower LTV compared with residential lenders since commercial properties are much more difficult to liquidate. The value of the property is generally established by an appraisal. Be aware that an appraisal is just an estimate of the market value and there are many ways of valuing a property. It is also possible that the figure that is indicated in the appraisal may not be used by the lender. Talk to a James McLandress specialist about a current commercial mortgage rate.

2) Financial Analysis

The prospective commercial lender will want to see your company financial statements. The statements will show how well your business is performing and the current state of its finances. For investment properties, the lenders will also be interested in the debt coverage ratio (DCR). DCR is the ratio of the income on the property versus the payments (holding cost). The better the DCR, the better the commercial mortgage rate.

Your commercial credit bureau and possibly your personal credit bureau will be required to determine your credit worthiness. The skills and background of the management team will also be evaluated. These variables may also affect your commercial mortgage rate.

The characteristics of the property are important to the commercial mortgage lenders. The lender will want to know location, appraised value, age, appearance, tenants, environmental issues, etc. Most lenders will have their own accredited appraiser who will determine the value of the property. It is important to check with the lender to make sure the appraiser you choose is on the lender's approved list. Plan ahead as a commercial appraisal may take anywhere from 1 to 3 weeks to complete.