No announcement yet.

What are the closing costs for a commercial loan?

This topic is closed.
  • Filter
  • Time
  • Show
Clear All
new posts

  • What are the closing costs for a commercial loan?

    The categories of closing costs for a commercial or investment property are similar to a residential mortgage, but can be more expensive. Appraisals are more detailed and can cost up to several thousand dollars because the appraiser must use several different valuation methods to determine the value of a property. Environmental inspections or insurance are often necessary and may cost from several hundred to several thousand dollars as well. Other costs are similar to a residential mortgage loan and may include: lenders’ origination fees, application fees, underwriting and document preparation charges, attorney’s fees, survey, title insurance, escrows for insurance and taxes, etc. Total closing costs may range from 2% to 8% of the loan amount.

  • #2
    Commercial loans are larger and have different requirements

    A commercial loan has many of the same closing costs as a residential loan, but typically, the costs are more because the nature of the property is different. You also may have to have additional reports regarding environmental matters, a business plan, equipment values, future values of a property or project, or insurance and bonding requirements that may not exist to the same extent in a residential loan. Closing costs typically include title costs, inspection fees, closing fee, escrows for property taxes and insurance, broker fees, origination fees, processing fees, recording fees, notary fees, attorney fees, realtor fees, etc.......