Myths Revealed About SBA Loans
The world of commercial real estate can be lucrative and provide an excellent income for those willing to do the work to invest in it. However, learning how to get funding for your properties may be a challenge. There are several reasons why an SBA loan application may be denied. The following are 4 myths revealed about SBA loans to better equip you to fund your path into commercial real estate.
Present All Requested Information
When reviewing loan applications, banks and lenders need to have all of their questions answered. When filling out an application be sure to present all the requested information in as much detail as necessary. Be up front with any financial information and don’t include things that weren’t requested by the company.
Only Apply To One Company
Private lenders take pride in building a relationship with you. When you apply for a loan from more than one company you take the risk that the lender will have already come across your same loan from another company. Maybe it would save you a little money on your loan, but it is not worth losing your loan altogether and making a bad name for yourself with lenders.
Have Realistic Expectations
When applying for an SBA loan, have realistic expectations. There are specific types of loans and programs terms available. Trying to bend the rules or be in control of the process is not good business practice. Choose the type of loan that works best for you, apply for it, and be willing to work with the lender under those terms.
Be Willing To Pay the Required Fees
When working with a lending company, you must be willing to pay the required fees before closing and at closing. These might include fees for appraisals, legal fees, reports about the property you wish to finance, and whether or not your project is feasible. Refusing to pay such fees at the required time will not bode well for securing a loan.
SBA loans have low down payments, long payment terms, low interest rates, and can be used for a wide range of business funding needs. Knowing how to work with lenders will go a long way in making your real estate dreams come true.