Commercial mortgages are used to purchase or refinance properties for business use. While many business owners start their journey by renting their space, they often find that commercial mortgages offer options that are a better fit for their long-term goals. At MortgageDepot, we are a top resource for business owners looking to finance their next venture in Pennsylvania.
Why Should I Consider a Commerical Mortgage?
If you are a business owner in Pennsylvania, a commercial mortgage can do more than provide funding for a brick-and-mortar location. Here are a few benefits that business owners realize from a commercial mortgage:
Commercial mortgages help business owners avoid unpredictable rent increases.
Commercial mortgages can help businesses purchase new equipment or other capital items.
Commercial mortgages allow owners to acquire large properties and rent out excess space, creating additional income to fund business goals..
Just like residential mortgages, commercial mortgages allow owners to build equity as the property value appreciates.
The Financial Details of Commercial Mortgages
If you are planning to apply for a commercial mortgage in Pennsylvania, there are several things that you’ll need to know. First, lenders will need to see that you are prepared to take on this financial commitment. When you start your quest for a commercial mortgage, have these documents organized:
At least three years of tax returns.
Asset and liability reports.
Current and projected financial reports.
All business plan documents.
As you’re investigating options with a mortgage broker, you’ll notice that the loan durations and repayment terms vary widely between commercial mortgages. Since commercial mortgages are viewed as high-risk propositions, you’ll also likely pay at least 30% in down payment and be subject to higher interest rates than residential mortgages.
Partner With MortgageDepot
MortgageDepot has access to multiple lenders and commercial mortgage products to help clients achieve their business goals. If you’re a business owner in Pennsylvania who wants to take their company to the next level, get in touch with MortgageDepot today to explore commercial mortgage options!