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Business Real Estate Financing Questions

Application process

How do I apply?

Begin the process by speaking with one of our Commercial Real Estate consultants. Please provide your contact information using our online form and we’ll call you back within the next business day. We’ll assess your needs and answer any questions you might have.

What you’ll need to apply

Business information

  • Legal business name, physical address, and phone numbers
  • Date business was first established
  • Business tax identification or Social Security number
  • Ownership type
  • Number of owners
  • Gross annual revenue
  • Business banking accounts and balance(s)
  • Current loan lender, amount, balance, and monthly payment (if applicable)
  • Collateral property address, type of property, and estimated market value

At least one business owner/guarantor who indicates they have authority and control must apply and provide:

  • Name, address, and phone number
  • Social Security number
  • Date of birth
  • Citizenship

Plus, for all businesses, each owner with 25% or more interest must be listed as a guarantor and provide:

  • Percentage of ownership
  • Gross annual income
  • Personal checking and savings accounts and balance(s)

Contact information

  • Primary contact (must be an owner of the business)
  • Primary contact phone number and email address

Current loan information

  • Lender
  • Original loan amount
  • Current loan balance
  • Current monthly payment

Property information

  • Address of collateral property
  • Property type
  • Current market value of property

Required documents

Along with the information listed above, you will also need to submit additional documents required for a credit decision.

For purchase loans

Standard escrow is 60 calendar days from the date of completed application package and executed purchase contract. There are three options to finance a commercial real estate purchase loan:

  1. Standard process: You have an executed purchase contract at the time of application. The contract must allow for a minimum 60-calendar day close from the day of application and the required underwriting documentation must be completed.
  2. Purchase pre-contract process: You have identified a property to purchase, have the property address, and intend to enter into contract. In this case, you can apply with that property address and provide the executed purchase contract up to 30-calendar days after your conditional approval.
  3. Purchase Fast Track process: If a 45-calendar day close is needed, and you can provide all the required documentation (underwriting, orders, and processing) for the lending process at application, then the Purchase Fast Track may be an option. Talk to your banker for details.

Next steps

For a guide to help you understand the mortgage loan process, review What to expect during the loan process (PDF).

Which property types are eligible for financing?

Most commercial property types valued up to $5 million are eligible.  The most common property types are office, retail, light industrial, warehouse, mixed-use, multi-family (5+ units), and some special-purpose properties.

Which property types are not eligible for financing?

Property types not eligible for financing include:

  • 1-4 unit residential dwellings
  • Agricultural, forestry, orchard or farm
  • Auto wrecking or salvage yard
  • Gas station more than 10 years old
  • Leasehold property
  • Heavy industrial, dry cleaning or chemical plant
  • Hospitality (hotel, motel, time-share, bed and breakfast, or short-term vacation rental)
  • Mobile home or recreational vehicle park
  • Property listed for sale, vacant, outside the U.S. on more than 40 acres, or under construction
  • Recreational; airport/hangar, amphitheater, amusement park, bowling alley, campground, casino, fishing, golf course/range, hunting, marinas, race track, stable, ski resort, or swim club.
  • Residence hall, sorority/fraternity or cooperative housing
  • Undeveloped land

What is the difference between owner-occupied and investor property?

  • Owner-occupied is when the owner's business operates onsite and occupies 51% or more of the property.
  • Investor property is when the owner's business does not operate onsite, or occupies less than 51%.

Do I need to be a Wells Fargo customer to apply?

No, you do not need to be a Wells Fargo customer to apply. However, you must be an established Wells Fargo customer for a purchase loan to finance the purchase of investor property, or for an equity loan or line of credit.

What happens after I apply?

After you complete the application and submit the required financial documents, a lender will review and make an underwriting decision. If your application is conditionally approved, a Wells Fargo Business Real Estate Consultant will contact you to discuss financing options for you and help guide you through the loan process. If your application is not approved, you will be sent a letter within 10 to 15 business days with an explanation.

Is property insurance required?

As a part of the application process, we will verify that you have standard property insurance. If certain environmental hazards are present or if the property is located in a flood zone, environmental or flood insurance may be required to obtain credit.

Account terms

Is there an origination fee?

  • For purchase, refinance, and equity loans, there is no origination fee.
  • The Commercial Equity Line of Credit has a one-time origination fee, 1% of the line amount, due at closing.

Are there escrow and title fees?

  • Purchase loans require standard customer paid escrow and title fees
  • For refinance, equity loans and lines of credit, Wells Fargo Bank will pay all title policy costs and the customer is responsible for all other title-related closing or attorney fees and costs (mortgage or deed of trust filing imposed by a state or other taxing authority).

Is there an annual fee?

There is no annual fee for loans. The Wells Fargo Commercial Equity Line of Credit has an annual fee equal to one quarter of one percent (0.25%) of the line, and is subject to a $250 minimum and $1,000 maximum. This annual fee is waived in the first year and only assessed during the 5-year draw period.

How is my interest rate determined?

Your interest rate will be determined as a part of our approval process and will be based on several factors, including your personal credit history, the loan/line amount, term selected, property type, and lien position.

  • Interest rate on loans can be either fixed or Prime-based.
  • Interest rate on lines of credit will be variable and tied to the Wells Fargo Prime Rate. 

What is the definition of Prime Rate?

In general, most of Wells Fargo loans and lines of credit use the Wells Fargo Prime Rate as a base rate. The Wells Fargo Prime Rate is similar to (but not always the same as) the Prime Rate quoted in the Money Rates column of The Wall Street Journal.

Account usage

How can I use my loan or line of credit?

When it comes to using your loan or line of credit, you have options:

  • Use your Purchase Loan to purchase commercial property (owner-occupied or, for established Wells Fargo customers, investment).
  • Use your Refinance Loan to pay off an existing Wells Fargo mortgage on commercial property (with an opportunity for cash-out) or an existing non-Wells Fargo mortgage.
  • Use your Equity Loan to borrow against the equity in your owner-occupied commercial property to finance repairs or renovations, expand your operations, purchase inventory, update large equipment or handle other business needs. Available to established Wells Fargo customers.
  • Use your Commercial Equity Line of Credit to borrow against the equity in your owner-occupied commercial property to meet both short and long-term business needs and to take advantage of unexpected business opportunities. Many property owners use the line of credit for items such as working capital, inventory purchases, debt consolidation, business improvements, and large equipment upgrades. Available to established Wells Fargo customers.

How do I draw funds from my line of credit?

You can access your Wells Fargo Commercial Equity Line of Credit through:

  • Telephone transfers to your Wells Fargo Business Demand Deposit Account (BDDA)
  • Transfers to your Wells Fargo BDDA via Wells Fargo Business Online® banking.

Account maintenance and security

Where do I send my monthly payments?

Please send your payment to the address noted on your account statement. You can also pay your bill with our free Automatic Payment service. If you have any questions, or would like to make a payment over the phone, please call our National Business Banking Center at 1-800-225-5935.

How do I set up automatic payments to my account?

Automatic payments can be set up when you sign the final loan documents, or at a later time by calling us at 1-800-225-5935.

When your Business Real Estate Financing account is set up with automatic payment, you can have your monthly bill paid automatically from any business checking account every month. With this service:

  • There are no checks to write, stamps to buy, or late fees to pay
  • Paying your Wells Fargo line of credit or loan on time may help you establish or maintain a good credit rating
  • Your bill payment will never be lost in the mail and you’ll know when your payment will clear

How it works

  1. Choose from 3 monthly payment options: Make the minimum payment, pay a set amount of your choosing, or pay your balance in full
  2. Your payment will be deducted from any business checking account at any financial institution
  3. Receive a confirmation message on your line of credit or loan statement with the amount to be paid and the date the payment will be deducted

What do I do if I suspect that there has been an unauthorized transaction on my line of credit?

If you have a transaction on your account that you or your employees did not authorize, please contact our National Business Banking Center at 1-800-225-5935 immediately.