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Tips for Choosing the Right Commercial Lender

Commercial lender counting money
Commercial lender counting money

An important step in your commercial real estate transaction is securing financing. To successfully obtain a commercial loan, you should evaluate potential lenders carefully. Here are few questions you can ask a commercial lender to get started:

What is the most recent loan a commercial lender has done?

First, only consider lenders who have demonstrated to you that they are actively lending. Someone whose last loan was over two years ago may not be the right fit for your needs.

What are the different loan products the lender offers?

Next, make sure you have several options to choose from. Lenders should offer unique loan products specific to your current financial situation. These options may include fixed rates, adjustable rates or fixed/float combinations in interest-only terms.

What is the lender’s reputation in the marketplace?

Additionally, you should be able to verify a lender’s reputation through third-party sources and references. Commercial lenders should have a proven record for solving transaction issues and executing loans. You want someone who works quickly, communicates effectively and resolves issues efficiently.

Is the commercial lender well-staffed?

A support system enables a lender to complete tasks within the allotted time frame. You don’t want to risk a deal falling through because documents weren’t prepared on time.

Is the lender up-to-date on what is happening in the industry?

Finally, only consider a commercial lender who understands current real estate trends. Lenders with current market knowledge are more likely to successfully execute commercial real estate transactions.

Your lender is an important member of your commercial real estate team. As you ask appropriate questions, you’ll be able to choose a lender with whom you can have a positive experience.

If you’re looking for commercial lender recommendations in the Phoenix area, please contact a member of our buyer representation team at 480-659-1777.

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