Commercial and Income Property Mortgage Financing

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Commercial and Income Property
Mortgage Financing
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The Financing Appraisal Process
The bank, credit union or other lenders will
require an appraisal of your commercial property
in order to provide a loan or mortgage against
the property. In the past, the appraiser was
typically retained by the lender similar to the
residential mortgage process. Now, however,
property owners generally retain their own
appraiser and the appraisal report is then shared
with the lender. The lender will not typically
lend on the entire appraised value of the
property and standard loan to values that exist
and are generally in the 75 range.
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The Refinance Appraisal Process
The refinancing appraiser will analyze the local
marketplace, the forces impacting the specific
asset type, perform an interior and exterior
inspection of the property, provide some
commentary and insight on the condition of the
property, and its efficiency. The highest and
best use of the property and then apply the three
approaches to value the cost approach, the
income approach and the direct comparison
approach, to arrive at a single, reconciled point
in time estimate of value.
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Help the Appraiser
Commercial appraisal is a very lengthy process
and each property has its unique challenges. You
can assume that the standard mortgage financing
appraisal will take between three and five weeks
so ensure you allow enough time during your
closing period to account for the lengthy
appraisal timeline. Additionally, provide the
appraiser with as much information as possible,
financial statements including the income and
expenses associated with the property, site
plans, floor plans, renovation and recent
improvement schedules, leases, environmental and
building condition assessments, tax bills and any
other information that the appraiser
requests. Not only does this information paint a
better picture of the property, but it also helps
to speed up the process which gets the money to
you faster.
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Whats Next?
Contact Nicro Realty Corp, to discuss your
commercial appraisal needs and talk to one of our
licensed and insured AACIs to obtain a quote and
find out more about our services. Given todays
ultra low-interest-rate environment, there has
never been a better time to refinance your
property and engage the services of a commercial
appraiser.
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Contact
Phone Website Location Email
1 905-518-5250 www.nicrorealty.com 1220 Burloak
Dr, Burlington, ON L7L 6B3 nicrorealty_at_gmail.com
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