Well depending on the price of the actual building, you typically are going to need a 20% down payment, plus an additional 3-6 months worth of mortgage expenses ready to deposit. The banks will require that because they need to see that if something where to happen you will be able to cover the mortgage. To answer how much they lend, typically 75-80% but again that's based on down payment, business and/or personal credit and if applicable any collateral. As far as choosing a lender, you would really have to shop around and have banks compete for your business. You also have to look at the terms that best fit your business' needs. If you want to pay the property off you can use a 15 yr fixed interest rate but keep in mind the mortgage will be higher than that of a 30 yr loan and a fixed interest rate. Also if the property you are looking at happens to be 200K, just take 20% of that (40K) and the bank should loan you the other 80%, because you would satisfy that requirement, because of the 80,000 you already have. But the best way of knowing anything is to ask your local lenders in the area. You may have to try the bigger banks first because they have the ability to handle larger commercial transactions than those smaller institutions. Hope this helps!! Good luck..
Jul 14, 2011