A commercial purchase comes with more than a down payment. Lenders dig deeper than on a home, so the closing costs and due diligence are bigger and take longer. Knowing what to budget and schedule keeps the deal on track. Here is what to plan for.
A lender-ordered valuation, more detailed than a residential one.
A Phase 1 environmental site assessment screens the property for contamination risk; lenders often require it.
Commercial legal work, and registering the mortgage on title.
Inspections of the building's condition and major systems.
Confirming boundaries and clean title to the property.
Commercial lenders may charge application or commitment fees.
Lenders need to know what they are lending against, so they look closely. It protects you too, surfacing issues like an environmental concern or a structural problem before you are committed.
These steps cost money and take time, and some can pause a deal if they turn something up. Budgeting and scheduling them early keeps your closing on track.
Bring us the property and we will walk through the closing costs and due diligence to budget for, so there are no surprises near closing. A licensed member of our commercial team will follow up.
Start a conversationInformation here is general and educational. It is not financial, legal, or lending advice, and it is not an offer of financing. Which reports and costs apply varies by lender, property, and deal, and requirements can change. Any figures are illustrative only. All financing is subject to lender review, property review, and supporting documentation. Submission of a form does not guarantee approval or financing.