Pennsylvania Commercial Mortgage Loans

If a business person is looking for Pennsylvania commercial mortgage loans, he should have several components in place before ever contacting a lender. Each state has specific guidelines, state and local interest rates, and rules for lending. Lenders will be looking for borrowers who have developed a solid, comprehensive business plan for the property.

If, for example, the property is a multi-unit rental, the lender will want the borrower to obtain from the seller financial and tax records for at least the last three years. The borrower should also have on hand the balance statement and profit-and-loss numbers for the current year. Again, if the borrower is purchasing a rental property, whether a retail strip mall or apartments, the borrower must have projected cash-flow data for at least the next 12 months.

Taking the Borrower's Personal Finances into Account

Borrowers will almost certainly be asked to show their personal financial status and credit rating, especially when purchasing the property as an individual. In Pennsylvania, the borrower will have to decide whether to work directly with a lender or, if the loan might be a difficult one to make, to take the option of working with a commercial mortgage broker. Mortgage brokers often work independently, have a lower overhead, and are able to contact any of hundreds of lenders to find the best loan.

Some good resources to contact for information about lenders and brokers are the Pennsylvania Mortgage Brokers Association and the Mortgage Bankers Association of Pennsylvania. Each of these entities will have up-to-date lists of licensed local lenders and brokers. Contact information will be included as well as additional information about each associate. A referral from a friend or acquaintance can be a helpful resource as well, especially if the friend is in a similar business and has recently obtained a commercial mortgage loan. A good policy is for the borrower to contact at least three lenders or brokers and to compare offers before making a final decision.