We Had A Higher Mortgage Rate
Last year, my husband finished culinary school and wanted to open up his own restaurant. I was behind him one hundred percent, but was not sure if our credit was good enough to be approved for a commercial mortgage or not. We had gotten into some credit card trouble when I was the only one working, and he was still in school.
We contacted a commercial mortgage broker and met with him to discuss our options. After he looked at our credit history, he told us that people with credit issues usually have higher mortgage rates than people with good credit. We asked him how much higher our mortgage rate would be than the current rates. He figured that if we could put down at least twenty percent that we could possibly have a mortgage rate about a point above the current rate.
We found a great location for our restaurant and put an offer in on it. When the offer was accepted, we called our commercial mortgage broker to start the loan application. We were able to help from my parents for the twenty percent down payment that was required. We were approved for the loan and have since been running one of the most successful restaurants in this city.