Documents to Prepare for Commercial Mortgage Financing
Banks and financial lenders require documentation to be submitted with commercial mortgage financing applications. As a general requirement, they ask for documents pertaining to the borrower's income and assets. Documentation requirements vary depending on the type of loan and its purpose.
Below is a checklist of common documentation requirements that you may use when preparing to get commercial mortgage financing. Not all may actually be required but you should at least have an idea of how to produce the documents should it be asked. The lender may request for original copies in order to validate your documents, but the originals will be returned after taking photocopies for their records.
Verification of Income
Verification of Assets
- Signed tax returns (1040's) or W2 forms - latest or past two filings
- Pay Stubs - the latest monthly pay stub (four stubs for weekly pay)
- Verification of Social Security and/or Pension benefits
- Rental Agreements or Leases (investment properties)
- Asset account statements (for past two months) where down payment is coming from (if purchasing)
Loan Type Transaction
- Most recent bank statement (could be for 6, 12 or 24 month period)
- Stocks and/or Bonds dividends statements
- Gift letter (stating amount and date funds were transferred along with donor information)
- 401k statement (retirement savings)
Verification of Mortgage / Land Contract / Rent
- Purchase Agreement contract
- Legal description of property (from site survey or existing title commitment)
- Copy of existing Site Survey
- Copy of recent property tax bills
- Hazard Insurance information sheet
Home Improvement / Construction
- Payment history for past 12 months
- Address of Investor or copy of payment coupon with address
In addition some other miscellaneous documents may be required. For example, a copy of your business license is required if you declare to be self-employed. Since divorce affects property ownership, divorce decrees may also be required if applicable. To increase your chances of getting approval for commercial financing, you must understand each lender's specific requirements and be prepared to furnish accurate and complete documentation.
- Plans and Specifications
- Construction Contract with licensed builder
- Copy of deed and survey for land owned
- Builder information
- Old appraisal info (if applicable)
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