Before you decide to apply for a commercial mortgage loan online, you must be sure that the lender is reputable. You can contact the consumer protection agency in the state where the lender is registered, and ask if any complaints have been filed on the lender. You should check several online lenders, since you may be able to negotiate a better rate by comparing more than one source. Apply with each lender on the same day, so if one of them does not grant you an approval you will not have to wait as long to receive an answer from the others.
Find Several Online Lenders
You should be able to find many different lenders that have online commercial mortgage loan applications available. The most popular lenders are commercial banks, and some of them have a streamlined online application process where you can receive a decision on your application in a few days or less.
You can always apply with a standard brick and mortar lender if you do not like sending your information online. Or you can apply with several online sources as well as lenders in your area at the same time.
Apply with Each Lender on the Same Day
Complete the online application with each lender on the same day, to reduce the amount of time you have to wait for a loan approval. If a lender’s online application has a feature that allows you to attach a document, gather your supporting information such as financial statements and tax returns, and submit those when you transmit your application. If the website does not have this capability, you should be able to fax the documents instead.
Contact any lenders with questions about the pricing they have for a commercial mortgage loan, or the fees that they charge. The savings can often be substantial, so find out exact amounts and not ballpark figures.
Negotiate the Best Rate
The reason to choose multiple lenders when you apply for a mortgage loan is to get more than one loan approval. You can then weigh the pros and cons of each offer, and choose the loan that is best tailored to your business needs at the current time.
If you are uncertain about the reliability or reputation of one of the lenders that approves your loan, even if they have the best loan pricing you need to be sure you are safe using them as your funding source. When the difference is minimal between the different approvals, it is a good idea to take the offer that is from the most secure lending source.
Another option you have is to try to negotiate a better rate. For example, if your third choice in lenders offers you an interest rate that is one quarter of a percent lower than your first choice, you can contact your first choice and tell them to match the best offer or you will not use them for your funding.