Business Real Estate Financing — FAQ

Application Questions

Which property types are eligible for Business Real Estate Financing products?
Most commercial property types are eligible. The property can be retail, industrial, office, warehouse, or in some cases a special-purpose property. The property value can be as much as $3,000,000.

Vacant land, agricultural and certain environmentally hazardous property types are not eligible.1
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 Specialist will contact you to discuss the best solution for your business. If your application is not approved, you will receive an explanation letter within 10 to 15 business days.
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 Questions

Are there application or appraisal fees?
There are no application or appraisal fees, just a one-time origination fee of 1% of the total loan/line amount due at the time of closing.2 For purchase loans, you will be responsible for title and escrow fees. You may be responsible for any mortgage transfer/filing fees, in the rare case that such fees are applicable. If levied by state or local jurisdiction, you will be responsible for any taxes due upon the filing or recording of the mortgage/deed of trust.
What is the annual fee?
There is no annual fee for the Business Real Estate Financing loans. For the Wells Fargo Express Equity® line of credit, there is no annual fee for the Advancing Term Line of Credit, while the annual fee for the Working Capital Line of Credit is equal to one quarter of one percent (0.25%) of the line, subject to a $250 minimum and $1,000 maximum. This annual fee is waived in the first year.
What will be the interest rate on my account?
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 credit amount/term selected, property type, and lien position.
  • For the Business Real Estate Financing loans, the interest rate can be either fixed or Prime-based.
  • For the Business Real Estate Financing lines of credit, the interest rate will be variable and tied to the Wells Fargo Prime Rate.
What is Prime Rate?
In general, most of Wells Fargo's 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 Questions

How can I use my loan or line of credit?
  • Use your Wells Fargo Express Refi® loan to refinance the real estate mortgage(s) for your current business or investment property to lower monthly payments or get cash out.
  • Use your Wells Fargo Purchase AdvantageSM loan to purchase commercial property (owner-occupied or investment)1.
  • Use your Wells Fargo Express Equity® loan to borrow against the equity in your commercial property to finance repairs or renovations, expand your operations, purchase inventory, update equipment or handle other business needs.
  • Use your Wells Fargo Express Equity® line of credit to borrow against the equity in your 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 equipment upgrades.
How can I access my line of credit?
You can access your Wells Fargo Express Equity® line of credit using several convenient methods:
  • Use free personalized checks
  • Make purchases using your account access credit card3
  • Make telephone transfers
  • Wells Fargo Business Online® Banking

Account Maintenance Questions

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, 24 hours a day, 7 days a week.

Account Security/Fraud Questions

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.
1 Most property types are eligible. Environmentally sensitive properties may require an environmental loan insurance policy. Property located in a flood zone may require flood insurance. These expenses if applicable, are the borrowers responsibility. Collateral properties located in rural areas may not be eligible for this offer. Purchase loans require the borrower to pay title and escrow fees. Please contact us for details. Note on Texas properties: Commercial property owners having a personal residence situated on, or adjacent to, the collateral property are not eligible for this offer. See specific product pages for additional terms and conditions.
2 A non-refundable deposit is due upon acceptance of terms, and will be applied at closing to the origination fee. The tiered deposit structure is $500 for loans/lines up to and including $250,000, and $1,000 for loans/lines above $250,000. Borrower is responsible for all state imposed fees and taxes, in addition to any legal fees.
3 Credit card is not available in NY, CT, and TX. Please contact us for details.
Equal Housing Lender