Investing in real estate is quite expensive. Most people cannot afford to buy real estate with cash. With a real estate loan, the dream of your own property can be realized.

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Many agencies such as banks, credit unions and lending companies offer real estate loans to those who can avail it. There are certain qualifications in order to qualify for areal estate loan.

Real estate loan is a loan on real estate usually secured by a legal document by which the owner transfers to the lender an interest in the real estate to secure the repayment of a debt or mortgage. There are two classifications of real estate loans: commercial and residential real estate loans.

In order to qualify for any of those two classifications of real estate loans the following are some of the requirements needed:

1). Commercial real estate loan:

a. Commercial real estate loan application form and real estate addendum.

b. Current business financial statements and most recent year tax return.

c. Guarantor’s current personal financial statement and most recent year personal tax return.

The applicant should sign the application form and the application materials should be submitted to the agency or institution where the applicant wants to apply for a commercial real estate loan.

2). Residential real estate loan:

a. Residential real estate loan application form.
b. Financial statement and most recent year income tax return.
c. Guarantor’s current personal financial statement and most recent year personal tax return.

In the same way as commercial real estate loans, the application materials for residential real estate loans should be submitted to the agency or institution where the applicant wants to apply for a residential real estate loan.

The materials needed for a real estate loan varies according to the requirements of different agencies and institutions.

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