Tips for Getting a Property Improvement Loan
Whether you are a mortgage broker or a business owner, finding the right property improvement loan for a company is not an easy task. Many businesses carry large debts including equipment and property loans which are not settled when the improvements are needed and can seem like too much of a risk for underwriters. This does not mean that an improvement loan is impossible, however, because you can take some tips to small-balance lenders to find the financing you need.
Explain Your Story
The first tip you will want to follow is to explain your story to the lender for why you cannot get traditional lending, what issues are likely to be found in a credit history and why the financing is important. Many non-traditional lenders will be swayed by a story that shows a company is slowly growing and just needs the right push to succeed.
Tell the Lender About the Property
One of the key things you will want to tell the lender is the facts about the property. Chances are your property improvement loan approval will be dependent on what type of property it is, what kind of business is run from it and what improvements it needs. You will also want to include the location and size of the real estate so the lender can have a more complete picture.
Discuss Your Goals for the Funds
This is an important tip, talk to the lender about how and where you will use the money. Include what the goals are for the finished improvements and how they will benefit the company. For example, if you would like to expand the eating area of your restaurant and fix your parking lot, then include how more tables means more revenue and that filled potholes means less liability for damages.
Provide Improvements Estimates
If you have itemized estimates for the improvements, it shows that you have done the research into how much funding you will need. This means contacting roofers, parking lot maintenance companies or other professionals for an evaluation before going to a lender and can give you an idea of which improvements are most beneficial at this time.
Securing a property improvement loan from a bank can be a challenge for business owners and more brokers are turning to small-balance lenders for this purpose. Taking the right information to the lenders can help you better secure the funding you need to grow your business and improve the property it uses.