Real Estate Loans
Equally important in the “American Dream” to that of owning your own home, is the dream of owning your own business. An important component to business ownership is the actual ownership of the land and improvements within which your business operates. Why pay rent to a landlord if you can make a loan payment and own it outright after a period of time? First National Bank is dedicated to the idea that commercial real estate lending is good
business for both the borrower and the bank! Many times, the most valuable asset owned by any business is the real estate. If the owner ever decides to retire and sell the company, owning the real estate can add great value to your company.
Competitive rates that can be floating or fixed. Loans are generally amortized over a 15 year period with balloon terms of 3 and 5 years fairly common. Loans are generally based upon a percentage of the appraised value or the sales price (whichever is less). Apply now!
In addition to completing a loan application, it is generally recommended that you bring along the following additional financial information to expedite your loan request:
- A business financial statement, and copies of business tax returns covering a 3-year period if possible.
- A personal financial statement and copies of 3 years of personal tax returns if possible.
- A copy of the real estate purchase contract.
- A short business plan indicating how purchasing the real estate will affect growth, cut costs, or improves operations. In short, why you want to buy the real estate.
- For companies that are brand new or in a start-up mode, a business plan may be your most important piece of banking information.
- An appraisal will be required, as well as an attorney’s opinion or a title policy. These are normally ordered after the borrower’s credit has been approved.
