What Can Trip You Up with Commercial Mortgage Lending?
Nabbing a building for your businessÑsay, a charming little shop, a slick office, or a huge warehouseÑoften means signing up for a commercial mortgage . ItÕs a bold move that could send your business soaring, but letÕs not kid ourselves: itÕs not always a breeze. There are some curveballs that can catch even the most on-the-ball business owners by surprise. HereÕs a no-fuss guide to what might go sideways, laid out so itÕs easy for anyone to follow. 1. Interest Rates Can Creep Up on You One big hassle is when interest rates start climbing. A commercial mortgage is just a loan, and it comes with interestÑthe extra bucks you pay to borrow the money. If you go with a variable-rate loan, that interest can hop around like a fidgety kid. If it jumps way up, your monthly payment could hit like a ton of bricks. Picture budgeting for one number, thenÑwhamÑyouÕre digging deeper to cover a lot more. ThatÕs a tough spot, especially for a small business. Even fixed-rate loans arenÕt...