Commercial Mortgage Online

The best place for a business to search for a commercial mortgage is online. The internet offers business access to the widest variety of commercial products and the widest variety of interest rates.

The first thing a business owner should do when seeking a commercial mortgage to run a search for commercial mortgages. Such a search should produce a list of commercial mortgage lenders. It should also give business owner a good idea of the interest rates and terms that could get on a commercial mortgage.

A business owner should go online to search for a commercial mortgage because it will give him access to many mortgage options not available in the community. Going online makes it more likely that a business owner will get a commercial mortgage.

Third Party Lenders

Most of the commercial mortgages available online come from third party lenders. Third party lenders are companies that specialize in creating and underwriting commercial mortgages.

The advantage to using third party mortgage lenders is that they make a much wider variety of mortgage product available than traditional mortgage lenders. Third party mortgage lenders are often easier and faster to work with than traditional banks.

Many third party lenders will issue mortgages to enterprises that banks refuse to loan money to. Third party lenders will work with businesses with bad credit, new businesses and speculative businesses.

The disadvantage to third party lenders is that they often charge much higher interest rates and higher fees than other lenders. Third party lenders will also offer stricter terms on mortgages than traditional mortgage lenders.

Online Mortgage Brokers

Many of the websites that make commercial mortgages available online are actually online mortgage brokerages. These are businesses that specialize in connecting borrowers with lenders.

The average online mortgage broker takes a mortgage application and shows it to several different lenders in an attempt to get the best mortgage deal. Online mortgage brokers make money by charging a fee on every mortgage they set up.

The way the average online mortgage broker works is simple it has the business owner fill out a form. The form asks them for the terms of the mortgage that they want, the amount of money they want and the interest rate they want. The broker then takes this application to a number of mortgage underwriters to see if they can create a mortgage for the business.

Online Mortgage Concerns

Business owners should limit the number of online mortgage applications they fill out because it can affect their credit score. The credit bureaus will often lower a firm’s credit score every time a credit report is pulled on the business. 

Many mortgage companies run a credit report every time they receive an application. This means that filling out several mortgage applications can actually lower a business’s credit score. Businesses with a lower credit score will have a harder time getting financing such as mortgages.