When it comes to finding a commercial lender to finance your apartment buying needs, finding the right lender and the right kind of loan product is key. If you are looking to purchase an apartment building to lease out to tenants, you need to be aware of all that you will need and have the necessary documentation to be able to get the loan and complete the lending process.
Commercial bankers finance loans to business’s who wish to purchase apartment buildings to be able to make a profit renting out the units in the building to tenants for a monthly rental payment. When apartment loans are issued, most often it is the property of the apartment building that is used for the collateral. This helps secure the loan and protects the assets for both the business owner and the lender. It can also help ensure that the bank has collateral for the loan that they will be issuing. There is certain documentation that is needed at the time of the loan approval process, and you should be sure that you have everything prepared and ready to give to your commercial lender.
Documentation for commercial loans for investment property that the business may use for renting or future investment purposes include:
• Three years of profits and losses or an appropriate schedule from a tax return
• Rent roll and schedule of losses
• Personal financial statements for personal guarantors
• Purchase contract
• Credit report
• Insurance information
• Lease agreements
• Payoff information
• Appraisal
• Three years of personal tax returns for personal guarantors
If you are getting the loan to build an apartment complex on and need to obtain the loan for new construction, there may be additional information that you need to provide to your lender in order to secure the loan as well. If you are in the business of renting apartments already, and the purpose of the loan is to secure an addition to an existing loan or to increase the amount that you are borrowing, you will need to provide rent rolls and other information to the lender to prove that you are making a profit on your leased properties and that you have enough working capital to operate your business with the addition of a new property. Depending on the amount of the loan and your current existing debt, you may need to provide more money down at closing or provide more collateral for your new loan.
These documents are the main ones which are required to be provided to lenders while applying for loans for commercial apartments. It is always advised to be ready with all the information which can be 
asked about the loans. A lot of other factors like appraisals of the properties, accessing fair market values and evaluation need to be done which might change the terms of the loan.
Commercial lenders also look at the amount of working capital that you have as a business to secure a new loan for apartment buildings. In addition, lenders use this information to determine if your business has enough profit to cover the operating expenses and if you will be able to afford the new loan amount in addition to the daily operating expenses and existing loans that you have and are making payments on currently.
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