Essential Commercial Mortgage Documents You Need for a Loan

Applying for a commercial mortgage can be complex and overwhelming. Gathering all the necessary documents can feel like a monumental task. We understand how challenging this process can be, but having a thorough checklist can simplify everything. Being prepared and organized when applying for a commercial mortgage ensures that all required documents are readily available, helping you avoid delays in the process.

 

Tax Returns

Include the last three years of personal and business tax returns, along with any applicable extensions. Lenders need this to assess your financial health and consistency.

 

Financial Statements

Provide personal financial statements from the last 60 days, plus year-to-date and year-end operating statements for your business. This shows up-to-date insight into your financial situation.

 

Real Estate Holdings

Prepare a detailed schedule of all your current real estate holdings. Lenders will review these to understand your property portfolio and potential liabilities.

 

Tenant Financials

Provide financial statements for single or anchor tenants, especially for investment properties. This will demonstrate the reliability of tenant income, which is crucial for the lender’s evaluation.

 

Bank Statements

Be prepared with the most recent three months of personal and business bank statements to demonstrate cash flow and liquidity.

 

Income and Expense Statements

Submit subject property income and expense statements, including year-end and year-to-date reports. This helps lenders assess the financial performance of the property being mortgaged.

 

Resumes

If you are applying for a loan for investment properties, you may need to include personal resumes to showcase relevant experience.

 

Credit Explanation

Write a letter explaining any derogatory credit items. Transparency is key, and providing context can help mitigate concerns from the lender.

 

Rent Rolls and Leases

For non-owner-occupied properties, provide rent rolls and lease agreements. Include details for properties held under different entities. This gives insight into the income potential of the subject property.

Staying organized throughout the loan process can significantly reduce the chances of delays. Keep this checklist handy and ensure these documents are easily accessible. Remember, this checklist is not exhaustive; each lender may have unique requirements, so it's essential to check with them beforehand.

Take the next step in your mortgage journey by reaching out for a consultation, downloading a more detailed checklist, or reviewing your financial documents to ensure you’re ready for the application process.