When someone talks about getting the best commercial mortgage available to them in the market, they are invariably talking about the interest rate they will be charged on any commercial mortgage they receive.
And while the cost of money is always going to be important with any type of financing instrument, interest rate is not always the most important factor for the best commercial mortgage in any given situation.
This is largely because it can be difficult at times to secure the commercial mortgage you want in the time you have to work with.
Its not unusual for a commercial mortgage funding process to take from 60 to 90 days or longer from the time you first apply until the deal actually gets funded.
And if at the end of that time period, you still don’t end up with the rates and terms you’re looking for, there may not be enough time to start the whole process all over again somewhere else.
To try to alleviate running out of time, applicants may try to work with several lenders at the same time.
But unlike residential mortgage financing, deal shopping is frowned upon with commercial mortgage lending due to the amount of work that can go into getting a deal completed.
If it comes to the attention of a commercial lender that you have several other applications out on the market, they may remove themselves from the mix and work with what they would perceive as more committed applicants.
So locating and securing the best commercial mortgage is all about what you can get into place with the time you have to work with.
In many cases, there isn’t an abundance of time to start with and the prospects of going 6o to 90 days without completing the financing process does not bode well for most deals or transactions dependent on commercial financing to complete them.
This is exactly why private mortgage lending can be an excellent option and best commercial mortgage option for financing your commercial property.
A private mortgage lender can typically complete the application through funding process in 30 days or less with less third party verifications (and their related costs) required at times.
Once you have funding in place, and you’re no longer under the gun for time, you can start the process for seeking out a long term commercial mortgage financing solution, if that’s what is required, that can provide the best available rates and terms in the market.
With no time pressure, you’re also not going to be trapped into taking something that is less than desirable due to running short on time. A better bargaining position has to have time on your side and with short term funding already in place, you are in a much better position to go through the market strategically to land the best commercial mortgage deal.
If you’d like to discuss the best commercial mortgage options available to you at this time, based on your requirements and time parameters, I suggest that you give me a call so we can discuss your situation in detail and review potential commercial mortgage options available to you.