If you’re planning to purchase a commercial property in Exton, you’ll need a reliable strategy—and the right financing partner—to move things forward.
Whether you’re buying a space for your own business or expanding your real estate portfolio, securing a commercial mortgage takes preparation, focus, and support from a team that knows the local market.
At Penn Street Mortgage, we’ve been helping clients secure business property loans for over two decades. We don’t hand you a list of options and leave you to figure it out.
We take time to understand your goals, explain the process, and stick with you from the initial conversation to closing. Here’s what we think you should know before you apply for a commercial mortgage in Exton.
Understand How Commercial Mortgages Work
A commercial mortgage is different from a residential mortgage in a few key ways. These loans are designed to help you purchase or refinance property used for business purposes.
That could include an office building, warehouse, storefront, or multi-unit property. In some cases, you might be buying land for development or adding a building to your business operations.
Most commercial mortgages have a lower loan-to-value ratio than residential loans, which means you’ll need to provide a larger down payment. The loan amount typically covers around 70 percent of the property’s appraised value. That remaining 30 percent needs to come from somewhere else—usually your existing capital or secured assets.
The approval process can also take longer than what you’d expect with a home loan. There’s more documentation involved, and lenders tend to take a closer look at your financials, projections, and how the property will be used.
Prepare Your Financial Documents Early
When you apply for a commercial mortgage in Exton, lenders are going to request a comprehensive financial package. They want to see that your business is stable and that you can support the loan.
Here’s what you should have ready: tax returns, bank statements, profit and loss reports, a balance sheet, and your business plan. If you’re running a startup, lenders may ask for personal financial statements or additional collateral.
The more organized you are up front, the more efficiently the process will move. We’ll walk you through everything you need to gather and double-check it before it’s submitted. That’s part of what makes our process different.
Know Your Loan-to-Value Ratio (LTV)
One of the most important numbers to understand is your LTV ratio. This tells lenders how much risk they’re taking on based on the value of the property. The lower your LTV, the better your terms may be.
For example, if you’re purchasing a $1 million property and you’re seeking a $700,000 loan, your LTV would be 70 percent. In most cases, commercial mortgage lenders won’t go above that threshold. Some may require even lower LTVs depending on the property type or how your business is performing.
If you’re bringing strong equity to the table, that shows stability. We’ll help you assess your position and explore different options, including whether there’s a benefit to contributing more up front.
Be Clear on How You’ll Use the Property
Lenders will want to know how you plan to use the property. Are you moving your business into the space? Are you renting it out? Will it be mixed use?
This affects the type of loan available, the interest rate, and the repayment terms. An owner-occupied commercial mortgage may look different from one that’s tied to an investment property. Some lenders specialize in specific property types, so it’s important to match your project with the right financing source.
Because we work with a broad network of lenders, we can pinpoint which ones are the best fit based on how you plan to use the space. That’s one of the advantages of working with us instead of a single bank.
Choose the Right Term and Rate Structure
When it comes to commercial lending solutions, you’ll need to decide what loan structure works best for your business. That includes the repayment term, the rate type, and any future flexibility.
Commercial mortgage terms can range from five to twenty-five years, with fixed or variable rates. A fixed-rate loan offers stability, while a variable-rate loan might offer lower rates early on but more unpredictability later. Some loans include balloon payments at the end, so it’s important to plan for that.
We’ll explain all the options in clear terms and help you choose a structure that supports your financial goals—not just for today but for the long run.
Understand the Role of Property Condition and Compliance
Before a lender approves your commercial mortgage, they’ll want to verify the property’s condition and compliance with zoning laws and building codes. Any issues—like structural damage, outdated systems, or permit problems—can affect your approval or delay closing.
If the property needs updates or renovations, you’ll want to factor those costs into your overall plan. In some cases, bridge financing may be used to help with those expenses until the commercial mortgage kicks in.
We recommend scheduling inspections early and reviewing any environmental or legal issues tied to the property. We can also help you coordinate with your legal and tax professionals to make sure nothing is overlooked.
Review Refinancing Options in Advance
Even if you’re focused on your initial purchase, it’s worth thinking about what happens down the road. If your business grows, your credit improves, or property values rise, refinancing can be a smart move.
Some of our clients use refinancing to release equity, consolidate debt, or switch to more favorable terms. Others refinance to support expansion without taking on new loans. If refinancing becomes part of your future strategy, we’ll help you review timing, costs, and possible benefits based on your current mortgage terms.
We Know Business Property Loan
We know that business property loans are more than transactions. They’re strategic decisions that can shape your business for years to come. That’s why we focus on building relationships, not just closing deals.
If you’re ready to secure a commercial mortgage in Exton—or you’re exploring your options—we’re here to help you take the next step with confidence. Let’s talk about your goals and find the right way forward.
Contact Penn Street Mortgage today to schedule a conversation.