Commercial Mortgages & Commercial Lines of Credit (CELOC)

**No Loan Origination Fee on Commercial Lines of Credit from $250K to $500K submitted before 01/15/2008**

Call us at 1-866-771-1594 or 954-838-8455 to apply or you may email us at scott@lowestraterefi.com

One small fee-Only 1%-charged at closing, includes all closing costs*, including appraisal

*Residential (including mixed use) 1-6 not available in NY or NJ, 1-5-4 not available in PA,VA, or TX.

*If the state or taxing authority imposes a tax or fee for the filing of a mortgage or deed of trust, the tax or fee will be the responsibilty of the borrower.

*On purchase transactions a $500 loan origination fee deposit is due upon acceptance of the loan offer and is applied to the borrowers 1% loan origination fee. Enviromentally sensitive properties would also require enviromental insurance a one time fee of $400-$1,100.

I'm sure you already know that the residential real estate market has all but dried up. Oh sure, there are residential investors out there waiting like vultures to profit off of some poor homeowner's foreclosure misfortune but the one area of real estate investing that is hot right now is commercial real estate.

Everyday I am getting phone calls from people wanting to get a commercial mortgage and get into this hot new market. Investing in commercial real estate is quite a bit different from residential real estate investing. With commercial real estate lending the lenders are mainly interested in the property. It is less about the individual person or company that is buying or refinancing the commercial property and more about the income and condition of the commercial property.

First of all commercial mortgage lenders want to know how much the commercial property is receiving monthly for each unit that is rented. You fill this information out on a rent roll form. On the rent roll form you list the monthly rent received and if you currently have a lease on each unit and when that lease expires. If you have units that aren't rented out at the time they will want to know how much you can rent each unit out for.

The borrowers credit score is also important in commercial mortgage lending but not as important as it is in residential real estate. In commercial real estate most of the mortgages are stated income/stated asset. If you are purchasing or refinancing commercial property with a stated income product your interest rate will of course be higher than if you can show your income. But most of the people that own commercial properties are self employed and they often do not show a lot of income on their tax returns because self employed people tend to write off as much income as they can. If you have a low credit score you may need credit repair before you are able to purchase a commercial property. A higher credit score means that a lender will go higher on the loan to value of a property.

Also when purchasing commercial property you must get approved for each individual property that you are looking at purchasing. It's not like you can get a blanket preapproval which is good on any property like it is in residential real estate. You are approved by each properties income and condition.

The great news is that once you are approved you can close on your new commercial property quickly, usually within 30 days.

The first thing that you will want to do is to find a good commercial mortgage broker. A good commercial mortgage broker will have lenders with different types of programs. Let him know what you are type of commercial property you are trying to purchase and what kind of cash and credit score you are working with. After you obtain a commercial mortgage broker you can find a commercial real estate agent that can help you find a property or you may even try to find the commercial property yourself if you are looking for a bargain from a for sale by owner property although I would suggest that if this is your first commercial property purchase that you use a licensed real estate agent and of course a licensed real estate broker.

Sandra Sheely is President of First Financial Mortgage, Inc. in Sunrise, FL. She has been in the Real Estate Industry for 12 years with experience in the mortgage industry and title industry. She has a couple of Mortgage websites. http://www.ffinancialmortgage.com and http://www.lowestraterefi.com

She writes a mortgage blog on both of her mortgage websites. She has a credit repair website at http://firstfinancial.fixcreditbiz.com/

Article Source: http://EzineArticles.com/?expert=Sandra_Sheely

Buying Commercial Real Estate Is A New Ballgame. Commercial Mortgage Lenders Look At Everything Differently

If you a real estate investor that has had enough of the residential real estate market you may be wondering how you can make some money in real estate with the state of this market. You may have heard that people that were into residential real estate are now diving head first into the Commercial Real Estate Market but it's a whole different ballgame.

First of all, let's start with what makes a property a commercial property. Of course we all know that office buildings, retail space and warehouse space are commercial properties, but a multi-family unit is also considered commercial if it is 5 or more units.

With a residential mortgage you go out and get pre-approved and start shopping and when you find a new property you're approved as long as it appraises for what you are offering the seller and you have the income that you stated. With commercial mortgage lending the lenders look at the property more than they look at you. They want to know that the commercial property that you want to buy is producing income. They don't look as much at your income as they look at the income of the property.

That being said you won't know if you're approved for a new commercial mortgage until you give the commercial mortgage broker the income information on the individual property that you are thinking of buying. They will need a completed application along with the rent roll which will show them how much the current owner is receiving in rent on each unit. They will also want to see leases and operating expenses which include real estate taxes, insurance, common utilities and repairs. They will also want to know if you will be occupying any part of the commercial space and if so how much and what type of other businesses now occupy the other commercial space.

Of course your credit score is going to be important too. Obviously the higher your credit score is the better for you. If you have credit issues I offer credit repair on my websites. Credit repair is money well spent because you can usually get the money that you spend on it back the first month or two of a new mortgage. Just click on the links below for information.

Also, the interest rate that you will receive on the new commercial mortgage will be decided by a few things. Namely your credit score, how much money you are putting down and the type of property that it is. Commercial Lenders charge a higher interest rate for bars/restaurants and a lot of commercial lenders will not lend on gas stations. We do have lenders that will lend on gas stations but the interest rates are going to be higher.

There's a lot to learn before you take the big plunge into commercial real estate and you should do your homework first.

Article Source: http://EzineArticles.com/?expert=Sandra_Sheely