Grandstone Mortage – Frequently Ask Question
1. Why should I use Grandstone Mortgage instead my local bank?
Grandstone Mortgage is affiliated with various lenders nationwide including local, regional and national banks. It is important to note that most banks offer retail lending prices (the rate and terms that they offer their clients) versus wholesale lending prices(the rate and terms that they offer to their correspondents or wholesalers).
2. What qualifies as a commercial real estate loan?
A commercial real estate loan is a loan that is secured by commercial real estate (office, retail, and multifamily)
3. Are you a direct lender?
Grandstone Mortgage operates as a correspondent lender. This means we can lend on behalf of the companies we represent and as such have direct access to pricing. We also underwrite and close the majority or our transactions.
4. How much money can I borrow?
This depends on many variables. Owner occupied properties borrowing ability will be heavily dependent on the business cash flow and the ability to repay debt. Once we calculate the company’s historical cash-flow we will need to add the property’s debt.
5. How long does it take to get a commercial mortgage?
Depending on the type of loan, 30 – 90 days.
6. What are the general requirements?
The ideal requirements for a commercial real estate loan are as follows: Borrower’s Net Worth (personal & business) aka Global Net Worth should be equal or higher than the loan amount requested. Borrower should have post-closing liquidity equal or superior to 6 months to service debt or 10% of the loan amount. Previous ownership experience is highly desirable. This is a general guideline as these requirements can vary from lender to lender.
7. How much money do I have to contribute towards the purchase price?
It depends on the product you are choosing. Usually, lenders require 25% to 35%, of the loan amount requested.
8. What type of loans do you furnish?
We furnishloans 1.5M and greater to any commercial backed real estate property.
9. What type of information and documents do I need to begin the loan process?
Give us a call. Basically, for investment properties we will need 3 years of the property’s operating statements up to the current year to date, the most updated and current rent roll, current pictures or the Offer Memorandum, and the personal financial schedules (PFS) for all Principals. For owner occupied properties we request personal financial schedules (PFS) issued from the last 6 months, the last 3 years corporate and personal tax returns, and current ID.