Advantages of Pre-qualifying for a 504 Loan

With most things in life – it pays to get a head start. When it comes to buying real estate, that definitely rings true! Pre-qualifying for a 504 loan is the best way to get ahead when trying to buy real estate for your business.

If you landed on this page you might already be aware of the SBA 504 Program but if you aren’t, it’s a loan program designed for small business owners, allowing them to purchase fixed assets (real estate or equipment) with very favorable loan terms. The most attractive feature is the low down payment of only 10% partnered with the long term, fixed interest, rate fully amortized over 25 years.

Let’s take a look at some of the top advantages of pre-qualifying for a 504 loan.

  1. It shows you your purchasing power. You can get an idea of what kind of building you can afford.
  2. It saves you time. Once you have an accurate idea of your price range, you won’t waste your time looking at properties out of your financial reach.
  3. It allows you to plan ahead and budget. You can find out what monthly payments to expect for 25 years. With this information, you’re able to accurately plan for the future.
  4. You’ll be able to make an offer right away. When it comes to buying real estate, you have to act fast. With the prequalification letter, you’ll be ready to make an offer right when see you a building you’re interested in.
  5. It puts you ahead of your competition. Oftentimes, a seller will get multiple offers from potential buyers. Having a prequalifation letter to submit with your offer shows the buyer that you are credible and ready to move fast. According to one of TMC’s borrowers, Alex Beckstead with 4SP Creative, “The fast pre-approval was a big part of us making a successful offer!”
  6. It gets you organized. The documents and information required for prequalification will be beneficial to have on hand throughout the financing process. Having this information at your fingertips will help when you decide to pursue a loan and will speed the process up considerably.
  7. It provides peace of mind. Another client of ours, Chris French with Chris French Metal said the prequalification letter is what got him moving. Once he got prequalified and realized that people believed in him and were supporting him – it gave him the boost of confidence he needed to start the hunt for his perfect building.
  8. You’re not under any obligation. Prequalifying is free and doesn’t mean you’re locked into any commitments.

How to Prequalify

TMC Financing can get borrowers looking to purchase a building in California or Nevada qualified within 48 hours. It is a seamless process at no cost to you. Three documents are needed – three years of personal and business tax returns, a personal financial statement, and interim financials.

TMC acts as your advocate starting with the preapproval and continues to provide guidance throughout the entire loan process. The prequalification gives you the opportunity to establish a relationship with a Certified Development Company (such as TMC Financing) who will be your supporter from start to finish.

Download the pre-qualification application now. 

About TMC Financing

TMC Financing is an SBA Premier Certified Lender and a high-volume loan provider. TMC has over 35 years of expertise and has helped over 5,000 businesses. TMC operates in California and Nevada and is your best source for SBA 504 Financing. Contact a TMC loan expert to find out more about the prequalification process for 504 loans and how to put your business one step ahead.