How to get Commercial Real Estate Loans?


Having your real estate property is an asset for future benefits. If you intend to buy a property for future investments, you need to learn more about the importance of commercial real estate loans. Most of the people are now opting for a loan to invest in commercial real estate. If you have already zeroed on the property, the next step to securing your property is availing for the commercial real estate loans. There are many people out there, who want to apply for the commercial personal loan but do not know the procedure. To ease your trouble, we have tried to encompass the vital points below for your understanding that will facilitate you in applying for the loan to an earliest.

Steps for Applying for Commercial Real Estate Loans:

commercial real estate loans

Decide on how to utilize your Loan:

The first step is clarity of thought, you should ask yourself why you want to apply for a commercial real estate loan. Your next plan of action will rest on this basic understanding. You can apply for this loan to buy an office building, housing development, hotels or other commercial building. So, make a plan of the property you want to purchase, reconsider your decision if it is a good investment for the future. Then think about where to use your money, one’s you get loan approval. What kind of commercial real estate’s loans will best suit your interest. Land, labour and resources are the potential areas you need to brainstorm.

Select the Best Commercial Loan Category:

Once you have decided your purpose, and done the basic research, your next move should be to select the right loan category. Commercial loans are of different types like purchase loan, construction loan, refinance loan and hard money loans. Your loan type will depend on your urgency, your capacity to repayment or specific preferences like low-interest rates. Some of these loans have a long repayment time, and some have shorter time frames. For instance, for purchase loans or mortgage loans, you get a 20 years repayment time frame. Whereas, hard money loans have a shorter time frame, i.e., less than a year. 

Look for the Right Commercial Lender:

The final decision relies on choosing the right commercial lender. You need to carefully choose the lender, most apt for catering to your needs. You can get loans from a commercial bank, credit union, or traditional lenders to seal a deal. Always remember banks gives you a loan based on the fulfillment of some basic credentials, like personal credit history, business credit score, annual revenue, coverage ratio or debt to income ratio. Apart from these, they can also look for property type, purchase price, operating statements, loan to value ratios and rental income if required. However, if you are in dire need of money and don’t want to get into the complexities of the traditional bank formalities, you can opt for hard money loans that will help you to get immediate cash flow to start your project.

Before you narrow down your option, you also need to consider the interest rates, and processing fee, it is eventually going to impact your EMIs. So make sure that you do the right assessment before making the final call.

commercial real estate loans

Be Prepared for Loan Application:

This is the final step for attaining commercial real estate loans; you need to be well-prepped with all the necessary documents required for getting this kind of loans as you may already know that you need all the vital credentials in the application process. Keep documents like business balance sheet, business tax returns, personal tax returns, business plan, and legal documentation handy. All these supporting documents are needed at the time of application.


Keep all the above pointers in mind while applying for a commercial loan for real estates. Make sure you keep all the documents in hand because the lender will verify your credentials before paying money. If you have an excellent credit history, it won’t be difficult in getting the loan.


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