Preapproval for commercial loan

4 Replies

No, but it helps you determine your price range. The lender can already have your tax forms and personal financial statement, so they know what they are working with. If you are not bankable, it would save you some trouble to know that before you make an offer.

@Rachel Goldberg it is also important for you at this stage as it shows the seller and brokers that you are a prequalified serious buyer who can perform. Once you develop a track record that will speak for itself.

If you're going straight investor loan there are pre-qualifications but typically it is per property meaning rent roll, expenses, NOI, income info is what determines if the property is financable, you're only one component of it.

With residential owner occupieds, you and your financials will have more weight in the deal rather than the property itself. 

@Rachel Goldberg It is good to create a relationship with a commercial lender so you know what you will qualify for.