Tips for Selecting Commercial Lenders

There are many factors to consider when you are searching for commercial lenders. In some cases certain lenders might be more willing to work with you than other lenders.

Seeking a commercial mortgage can be a stressful and overwhelming process. Many novice borrowers are simply searching for the first lender who offers a loan. But often that is not the best financial choice. Knowing which commercial lenders would be more open to working with you and also how to make yourself more appealing to those lenders can eliminate much of the stress of the process and reward you with much more favorable loan terms.

Selecting potential lenders who specialize in loans that are near the amount you desire is a good first step to narrowing down your choices. It is common knowledge in the industry that huge national banks are not often interested in chasing small loans. Not only can it take a very long time to get your application processed but you will also notice that the loan officer’s attention will be quickly swept away when a larger client or application comes in. But a smaller lender will be eager to work with first time borrowers and those who need smaller loans. Likewise, requesting a huge loan from a small local bank is likely to overwhelm them and they will not be able to efficiently process the application or possibly even meet the amount that you are requesting.

Seeking a lender who is close to the property that you are purchasing can also improve your approval chances. Commercial lenders must look at all potential situations including the worst case of a foreclosure. In the event that you default, the lender prefers to take possession of a local property. The logistics of maintaining and selling the property are must easier. In addition, lenders tend to be more willing to assume a greater risk on a local property that they can easily visit should there be an issue with the loan.

Create a Deposit Relationship

If national lenders are not willing to approve your loan request, then you still have the option of working with a smaller local bank. In this case, it is wise to request an appointment with the branch manager to discuss your options. At that time you can show verification of your current business and personal bank transactions and offer to move all of your accounts to their bank upon the completion of your loan approval.

Know What You Need and Who Offers It

You should view commercial lenders as you would any other service provider. You need to select your lender based on your needs and how well they can meet them. You would not hire a huge national cleaning company to come in and clean your 800 square foot office, it wouldn’t be cost effective and they likely would not worry about keeping you very happy. But a small cleaning firm would be happy to have your business and would strive to ensure that you remain satisfied. Filling your commercial mortgage needs is just like filling any other need. Selecting the vendor who offers the services you need will make the experience much more pleasant for everyone involved.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.