When you get a commercial inquiry, you should first fully complete a 1003 and pull a tri-merge credit report.  That will give you most of the information you need to submit the deal.   Be sure to ask the following questions during that initial interview.

1.  When did you buy the building, what did you pay for it?

This is necessary to determine what kind of investment your borrower has in the building.  The less the personal investment from the borrower, the harder the loan is to book. 

2. Why do you want to do this loan?   What are your plans for the building?

If you don't understand the purpose of the transaction, your lender will lose faith in you.  The deal has to make sense to the borrower, the lender and the broker.

3.  Why have you had past credit problems?

Just like residential, commercial lenders will look for positive credit history.  All lates generally need explanations.

4.  For purchases, where is the down payment money coming from?

Commercial mortgages require 20-45% down payment depending on the property and the experience of the buyer.  The down payment must be real money that belongs to the borrower.  No gifts of equity.

If you need any help, give us a call at 800-262-2739.

Ken Markizon kmarkizon@apexmtg.com
B2 Development Manager X256

Steve Kapalka skapalka@apexmtg.com
Underwriting Manager

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