Put money down for commercial mortgage

Just as you would put money down on the purchase of a home, you will need to put money down for a commercial mortgage in Minnesota. Most lenders want between 10 and 15 percent down. If you have the cash needed to put down to obtain a commercial mortgage, you are ready to see if you can pre-qualify for a property. Next your loan officer will want to assemble a loan package before issuing what is called a letter of interest. Finally, the lender will review the file and create a loan document.

Gather documents for a commercial mortgage

You can begin gathering the documents you need in order to expedite the commercial mortgage process.

Get together your employment history for the past two years along with employment dates, salary, pay stubs and the contact information of your employers.

You will also need your social security card, tax records, the last three statements from savings and checking accounts, certificate of deposits, stocks. You should make a copy of your 401K or IRA plans, the title of your automobiles or loan information. Write down the names, addresses and account numbers for all credit cards, loans and mortgages. You should also figure out your net worth and list all other assets.

Research the Minnesota commercial market

Finally, before deciding to seek a commercial mortgage in Minnesota, scout the area and get a feel for the market conditions. Do you see a lot of "for rent" or "for sale" signs for multi-family units such as apartments or businesses? Is the commercial property located in an area that receives adequate traffic flow or is it hard to find? Talk to business owners in the area to find out where you can find the best values before signing on the dotted line for a commercial mortgage in Minnesota.