Commercial Mortgage Lending

Commercial mortgage lending is the act of providing debt capital to fund a transaction involving commercial real estate.

The commercial mortgage lending marketplace is a challenging environment for most small to medium-sized business managers and owners. Understanding the criteria most financial institutions use when lending for commercial mortgages can help companies prepare for this major financial commitment and obtain the best possible rates and terms for their commercial mortgage loan.

The value and location of the property under consideration is one of the most important criteria lenders look at when determining whether to approve a commercial mortgage loan. For industrial facilities and manufacturing plants, the location may not be as critical as the overall positioning and access to utilities available at the site. However, location is an essential consideration for restaurants and retail outlets, as these companies depend on foot traffic and regular customer visits in order to continue their operations. The amount of the loan will be dependent on the appraised value of the property to be purchased; as a result, the value of the property is an important consideration when making an application for a commercial mortgage lending arrangement. The credit rating of the borrower will also be considered during the loan application evaluation process. This includes current profitability and the company's ability to repay the loan as agreed.

CNF Exchange allows borrowers to submit their application for commercial mortgage funding through its online interface and to connect with financial institutions that provide lending for commercial mortgages. There is no cost or obligation for borrowers who submit their applications through the secure CNF Exchange online interface. By comparison shopping through the CNF Exchange system, borrowers can obtain accurate quotes for their commercial mortgage application and compare the terms and interest rates available from a variety of lending solutions. CNF Exchange can even provide added services to help commercial mortgage seekers present the best possible image of their company in order to increase their chances of obtaining funding at reasonable and affordable interest rates.