1 Thought on what is the difference between a commercial loan packet and residential loan packet?
  1. Reply
    GREG S
    December 7, 2012 at 9:37 pm

    Nowadays, more and more lenders take the typical 1003 application for residential real estate as the basis for commercial loans. You can bet there are a lot more forms to sign. You have the same basics, with identity, credit score, incomes, property title report, etc. But beyond that, commercial lenders are going to want rental contracts, projections of income, expenses, adjustments for depreciation, and appraisals with possible extra requirements, done by appraisers with advanced degrees.
    Much more expensive, may need two.

    Most of my mortgage business is residential. I have done some commercial. Try about 1,000 pieces of paper vs about 100 or less for a residential loan.

    Warning: many brokers will charge you non-refundable fees upfront (if your state allows it), even if they do not procure an acceptable loan. I know one guy that paid 4 fees on one project and got nothing. Watch your tailfeathers. Commercial has few rules.

    Sorry if I’m wasting your time now, but I am in the Pacific Northwest and I have found that local lenders are scared of their own back yard. Lenders in New York, Florida, and, as I recall, Massachusetts were more open.

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