- 24 Sep
Business Loan and Real Estate Financing at the same time – Top Tips to Get Two Loans
If you’re going for a Business Loan and Home loan at the same time, you’ve got a lot on your plate. Let’s have a look at the couple of things to do to get two loans successfully.
First of all, you’ll need to approach some real estate financing institutions to purchase a home and approach another lending agency for a business loan. It is better to approach a local bank or lender for real estate financing. For example, you go to a Miami real estate financing agency to get a home loan in Miami. You can go to banks to get both business loan and home loan at the same time; because they deal in both types of loan. You can also approach a financing agency to get the two loans at the same time easily. However, to borrow money for two purposes at once could be a difficult task. Banks or mortgage lenders would do a hard pull on your credit score. A hard pull for different loans may be damaging to your personal credit score and may decrease it by a few points.
Loan and Mortgage Process
Banks and mortgage lenders now follow tough credit criteria, particularly after the sub-prime crisis. Bank or mortgage lender may pre-qualify you for a home loan or real estate financing, while you search for home. It will allow you to know how much amount you can get. A mortgage lender will pull your credit score both at pre-qualification and closing. As you are applying for two loans i.e. business loan also, this process could hurt your score more. It may bring down your credit score, leading to stricter loan terms, like higher interest rate or a higher deposit.
Bank will also do a hard pull on your credit score for the business loan, it may lead to a negative reaction by your mortgage lender. Therefore, you may think of other methods for your business loan, which do not need a credit pull, for example:
Merchant Cash Advance – You can get a cash advance, and the lender debits the business credit card. A Merchant Cash Advance company may not need a credit pull.
Invoice Finance – You can get a cash advance up to 85% of your outstanding invoices. Invoice financing companies usually don’t need a credit pull.
Top Tips to Get Two Loans at the Same Time
You may use the following tips to improve your credit score and better loan terms:
- You may pay off your credit cards to get a low debt ratio to improve the credit score.
- Keep your credit accounts open even after paying off to increase the length of your credit history and improve your credit score.
- Get your credit report and examine it for any errors. If there are errors, get them removed to improve your credit score.
- Wait for some time if you can. First, you should try to get your real estate financing closed, then immediately apply for a business loan.
- You may search for business loan agency or lender, and may complete your business loan application and documentation at your own end; to get a business loan quickly.
- Approach two different types of lenders for real estate financing and business loan. You may get your Miami real estate financing or a home loan in Miami from a local Miami real estate financing agency, but your business loan from a bank.