If you have ever purchased a residential property, you know how much paperwork is involved. Getting a commercial mortgage is a whole different ballgame, with a long list of documents, statements, and reports required. This is because when you apply for a commercial mortgage, you’re not only required to demonstrate your eligibility for a sizeable loan, but you also need to provide detailed information about the property including its purpose, condition, and the income it generates.
To help simplify what can otherwise be a complicated process, we have compiled a list of the documents most required. This list can help you be better prepared in advance which in turn will lead to a smoother, faster approval process.
Typical documents required for a commercial mortgage
Here’s a list of documents you need to gather and provide by category.
Purpose of the Loan
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If new acquisition, copy of the Purchase Agreement |
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If refinance of existing property, existing loan balance, amortization schedule and maturity date |
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Amount of financing required, including details on intended use of funds |
Property Information
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Detailed description of property (age, location, nature of construction, number of units, suite mix, parking, details of building amenities) |
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If existing property, three (3) years of historical detailed operating statements, noting actual income and expenses for the property |
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Current rent roll, including occupancy date, monthly rent, amenities, unit size (sf), and any additional items included in the rent |
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Property taxes, insurance, and utility invoices for the most recent 12-month period and/or current detailed operating statements for the property |
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Copy of Environmental Site Assessment conducted post-construction within the past 12 months from an acceptable firm |
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Copy of Appraisal report (if required) completed within the past 6 months from an acceptable firm |
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Copy of Building Condition Assessment or Engineers Report (if required) completed within the past 12 months from an acceptable firm |
Borrower & Guarantor Details
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Borrowing Entity |
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Organizational chart, detailing company structure, key individuals, and reporting responsibilities |
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Financial statements for the most recent three years |
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Current credit report |
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Validation of substantive asset values listed in the financial statements (tax assessments) |
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Detailed real estate portfolio with comprehensive portfolio analysis |
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Personal Net Worth Statement(s) (if required) |
Gathering all these documents and getting them ready in advance can greatly speed up your application so that you can finalize your purchase or refinance and get back to business sooner. Download a copy of the checklist above for when you need to prepare for your next commercial mortgage.
How can MCAP help?
For over 35 years, MCAP has provided reliable, flexible financing for industrial, commercial, office, retail, and multi-unit residential properties. Take a moment to learn more about MCAP’s Commercial Mortgage Process Or, contact our team of experienced originators if you are looking for a commercial mortgage.
