Throughout the country, there are small business owners looking to purchase the building out of which they operate or to expand their current business. This allows your borrower great control over their finances and business.

Whether your borrower is looking to purchase an additional building or the space they currently rent, there’s some basic information you’ll need to submit the commercial mortgage request.

Credit history

One of the most important factors a lender will consider when evaluating your borrower’s commercial mortgage request is their credit history. This will help a lender determine your borrower’s financial health and whether they qualify for a mortgage. Before you submit a deal, make sure you and your borrower discuss their credit history and any past financial issues. When you submit, be sure to send a recent credit report with scores and tradelines to the lender.

Information about the property

The lender is also going to need information about the collateral your borrower is planning to purchase. You’ll need to know what type of building it is, the size of the property, and where it’s located, among other things. You should also include recent interior and exterior photos of the property in your submission.

Use of proceeds

Obviously your borrower will be using the funds to purchase the commercial property, but you’ll need to give your lender some additional information. Make sure you know what type of business will be operating from the building, if there will be any additional tenants or if the property is purely investment. This is all information your lender will need.

Proof of funds

Another requirement for any borrower looking to purchase commercial property is proof that your borrower has the money to make the down payment. The lender will also need to know where that money is coming from, so be sure to provide that information in your submission, along with any other relevant financial documents.

Agreement of sale

While you don’t always need to submit this document to get a conditional approval from a lender, the agreement of sale will be necessary for the deal to move forward and close. The sooner you send it over to your lender, the more quickly the deal can close. Make sure it is fully executed by all of the parties involved.

A commercial purchase is a major step for any small business owner, and it’s the broker’s job to make sure the process goes as smoothly as possible. Make sure you include the above information in your submission and be prepared to go to bat for your borrower to get the deal closed quickly.

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