If you are going to apply for a commercial loan refinance, make sure to consider your options before you decide on a lender.
Tip #1: Credit Repair
If you have any credit that is delinquent, contact the creditors and arrange a payment plan. This will show your commercial loan lender that you are working on repairing your credit, even though you are struggling at the present time.
Tip #2: Lenders
If your lender does not offer favorable refinancing, you may want to shop around at different lenders to see what they have to offer.
Tip #3: Additional Collateral
If you put down more collateral on the refinance, it may make a difference in the rate you pay and the term of your loan.
Warning #1: Loan Fees
Since you are taking out a new loan, you will have another set of fees to pay. You will also have additional finance charges.
Warning #2: Down Payment
If your loan-to-value ratio does not fall within the lender’s guidelines, you may have to pay down the loan in order to get an approval.
Warning #3: Loan Terms
Because you were unable to payoff your existing commercial loan, your lender may not give you a loan structure that was as attractive as the original package.