Documentation requirements vary significantly from one commercial mortgage specialist to the next. You will be expected to submit a variety of documents before being provided with a formal offer from your lender.
Considering documentation requirements ahead of time can help streamline and simplify all aspects of the application process, while improving your likelihood of qualifying for a competitive commercial mortgage.
If you would like to learn more about documentation requirements or have any questions on commercial mortgage applications, book your obligation-free consultation with one of our representatives today.
Essential Documents for Commercial Mortgage Applications
Irrespective of your requirements and the lender you approach, you will be expected to provide the following documents:
- Basic Application Form. This is the form that you will complete and submit to provide the lender with a basic overview of who you are, what you need and what you need it for. The basic application form gives the lender a good overview of who they are dealing with, along with an initial indication of whether you are eligible for a commercial mortgage.
- Summary of Income, Expenses, Liabilities and Assets. Analysis of this information is the first step towards accurately assessing your financial suitability for a commercial mortgage. The information you provide will be used to build a picture of your financial position, your cash-flow, and your net worth.
- Recent Personal Bank Statements.Most lenders will ask for personal bank statements for the past three to six months, which are used to verify the applicant’s financials performance by way of their expenses versus their income.
Owner-Occupied Commercial Mortgage Applications
If you are in the market for an owner-occupied commercial mortgage, additional documentation required will usually include the following:
- 2 years’ Trading Accounts. Considered important by lenders to assess loan affordability on the part of the applicant, enabling deeper calculations to be carried out than those based on the above-mentioned basic documents alone.
- 6 months’ Business Bank Statements. These will be considered alongside your personal bank statements, in order to verify your accounts management and cash-flow.
Commercial Investment Mortgages
Commercial investment mortgages are issued for entirely different purposes to conventional commercial mortgages, therefore include the following additional documentation checks as standard:
- A Copy of the Lease and Tenant Information. This is used to verify that the rental income the property generates (or will generate) will be enough to cover the costs of the loan. A complete copy of the lease must be provided, with no missing pages.
- Information on Other Investment Properties Owned. If the applicant currently owns any other investment properties, the lender may request a full disclosure of their value, outstanding mortgage balances, rental income, lease length and so on.
Save Time and Effort with Expert Broker Support
Having as much essential documentation as possible ready for submission prior to applying holds the key to a smooth and simple commercial mortgage application. In order to ensure you understand your obligations where documentation and evidence are concerned, it is advisable to consult with an independent broker at the earliest possible stage.