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Why You need a Residential / Commercial Broker if you own a Business
April 8, 2015 | Posted by: Kristi Mutka
2015-04-08
So you have a business and you need a mortgage sounds simple doesn't it?
Well if you've tried and run into challenges you are not alone. In fact you may not have thought of how running your own business affects your ability to qualify for your home or you are tired of renting for your business and you would like to own your commercial space.
Perhaps you tried to get financing for your business but no one would give you the funds so you maxed out your credit cards to start it up and now it's hurting your credit score, so now you are having a tough time off loading the credit debt to where it should be, in your business name.
Most business owners are using some version of home equity and credit cards to start their business and then forgetting that a mortgage renewal is just around the corner.
Having a broker that understands both how business financing and your home financing work can really help you grow your business and keep your personal financing balanced. That's why my knowledge of how both the commerical lenders treat businesses and how the residential lenders treat applicants can really save you.
Most brokers specialize in either commercial or residential so they will not be aware of how your current personal actions or planned business expansion affects you in your next lending application.
I'll give you an example: You go to a commercial lender looking for start up financing (tough to begin with) but I know how to get funding for that too. Anyways, the commercial lender will likely forget to tell you that the residential lenders won't look at you again for 2 years. Oops! and you wanted to buy a home next year.
Another scenariio is you think you have lots of money in your company and hate to pay taxes (who doesn't) so you take out funds from your company for any number of non business related reasons. Then you need something for your business, equipment, working capital, larger location etc. Well the commercial lenders won't like that you took the funds out of the company and if you can't put them back, there's an issue.
Often I can get the funds back to your business from another source (home equity or some other funds). A better way to go would be to plan it all out with me so we don't have to fix an avoidable situation.
I am your business and personal lending account manager and I work for you (not the lenders). I wade through all the lending criteria with you and your business in mind. What will save you the most money, best terms and conditions and I shop the market for you. I help you avoid those expensive mistakes and you won't waste your precious time dealing with it. I always let people do what they do well. I don't DIY my house renovations, you shouldn't DIY your residential and commercial lending. I'll work with my team of professionals (bankers, lawyers, accountants, business brokers, realtors) and we will keep you on track.
Kristi Mutka, BBA is a residential and commercial mortgage broker serving Coquitlam, Maple Ridge, Tri-Cities and Fraser Valley & Vancouver area. She can be reached at kristi@kristimutka.com