How to Find Best Commercial Real Estate States Income Loans

commercial stated income loan

Once you've made the big decision of buying a real estate property, the next big decision you need to make is 'How' to finance your real estate property. There is a plethora of options you could consider for raising finance and unless you're a millionaire, raising finance in the form of loans is the best option for you! Commercial real estate stated income loans are given both by the banks and the private hard money loan providers. While the banks require a list of qualifications which you need to pass, hard money lenders make your life much easier by making loans available to you easily and quickly! Read on to know the tips on how to find the best commercial real estate stated income loans.

1) Interest rates

Interest rates are the primary factor you must be considering while thinking about which loan to buy. Banks and private money lenders have different interest rates and choose the best deal for you in light of your financial requirements and position.

2) The credibility of the source

Undoubtedly, you can rely on all the banks for the credibility of the source. But when you're choosing from the hard money loan providers, you must run a credibility check by looking at their website. Have no shame in asking for the details of testimonials provided and if possible, make some calls to their previous customers and listen about their customer experience!

3) Time window required to sanction the loan

The time factor can literally make or break the deal for you. If there's a very good deal and you fail to arrange for money, there will be a hundred others who'd be rushing to grab your deal. So it's very important that your commercial stated income loan provider promises you a short time window for providing you the loan.

4) The pre payment penalty rates

Some banks and private hard money lenders have stringent policies on account of pre payment. The pre payment penalties can surprisingly be higher and put you in losses. Remember that it's in best interests of you to buy a loan that has less pre payment penalties.