Clear answers before you submit a commercial file.
Commercial mortgage approvals are shaped by property income, loan sizing, sponsor strength, lender appetite and closing conditions.
How is a commercial mortgage different from a residential mortgage?
Commercial mortgages are usually underwritten around the asset and its income. Lenders review net operating income, debt service coverage, lease quality, property value, borrower experience and the business plan, not only personal income.
What is DSCR?
Debt service coverage ratio compares property income to required mortgage payments. A stronger DSCR gives lenders more comfort that the property can support the debt through normal operating changes.
What is LTV?
Loan-to-value compares the requested mortgage amount to the lender's accepted property value. A lower LTV generally means more borrower equity and less lender risk.
When does bridge financing make sense?
Bridge financing may fit when a borrower has a short-term need and a realistic exit, such as a sale, refinance, lease-up, construction completion or stabilization plan.
What documents help speed up review?
Start with the property address, purpose of funds, rent roll, operating statements, current mortgage statement, borrower financials, corporate ownership details, purchase agreement if applicable and any appraisal or environmental reports already available.
Can I refinance and take equity out?
Yes, if the property value, cash flow, existing debt, borrower profile and lender policy support the requested proceeds. Equity take-outs are commonly reviewed for acquisitions, expansion, debt consolidation or working capital.
How are construction loans sized?
Construction lenders commonly review loan-to-cost, as-complete loan-to-value, borrower equity, budget, contingency, permits, pre-leasing or pre-sales, sponsor experience and takeout strategy.