Prepare yourself to meet your banker - part2
Commercial Real Estate Articles November 8, 2003
So far your banker knows the kind of customer you are, the location and full description of the property. A good banker will continue to ask questions and they would be similar to the following:
Note: This list is subjective and list the minimum that I would personally ask. You will be asked more or less depending on the lender and instituton.
Owner occupied or investor? Is a related company going to be occupying the property or are you going to use it for a related business or lease it?
Does the borrower have experience with real estate investment? If so is it with similar properties?
Reasons for buying or refinancing the property Better rate? Buying opportunity?
Why are you choosing this bank in particular to do the financing? Believe it or not this is the kind of question that a good banker will ask. The question will not be phrased this way. The banker will not come out and say Why us? when there where clearly a dozen other banks between your house and this branch. But a good banker would want to know specially if he did not approach yu, and it was you who approached the bank. The answer might be obvious if you are already a customer or the bank is running a special program.
I think that pretty much covers the kind of information that will be asked on a first meeting, now onto the conclusion when we get into specifics about purchases, investment or refinance deals and other questions that might arise depending on the kid of request involved
click here for the first part.
click here for the conclusion
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