Are you considering using a Commercial Mortgage Broker?
If you currently own, or are considering acquiring a commercial property, you’ve likely thought about using a commercial Mortgage Broker. You’ve also likely wondered if it makes sense. After all, can’t you save money by going directly to the lender? Here are Six Reasons to Use a Commercial Mortgage Broker:
There has been a tremendous growth in the number of lenders and lending products. You likely thought that big Banks were your primary option. There are now many more lenders. You can choose from Banks, Credit Unions, Pension funds, Insurance Companies, Conduit Lenders, Private Funds, Mortgage Investment Corporations, Lending Syndicates, and others. Your Broker can identify the appropriate solution for you and offer you added choice.
Do you really have time to shop around to different lenders? Do you even know who to approach? You can waste a considerable amount of time locating a lender who has the proper lending program and product for your purposes. As well, there is considerable risk in placing all of your eggs in one basket. You may spend several weeks working with a single lender, only to find at the end of the day that their credit committee declined your application. Would you really have the time to start all over again with another lender? Your Broker has access to a wide variety of sources and can significantly accelerate the lending process for you, by speaking to several potential lenders simultaneously. Lenders who have the right product for you!
The reality is that Lender’s are busy people. A well prepared and persuasive loan presentation package will go a long way to ensure quick lender approval, with the most competitive terms and conditions. Remember, you have one chance to make a good first impression! Finance Your Income Property Like A Pro, outlines the steps your Broker will take in presenting your loan opportunity to lenders.
Many lenders, particularly non-traditional ones, rely significantly or exclusively on Broker generated business leads. They do not have a retail, or “storefront” presence, and are not equipped to handle “walk-in” business. They do however have regular and on-going contact with Brokers. This works to your advantage.
The reality is that as a new applicant you may not have ready access to people who really matter in the decision making process. Your Broker will know who to contact, and how to expedite consideration of your mortgage opportunity, to get you the best deal.
A significant factor in using a Broker is the likelihood of cost savings. Lenders vary in their interest rate structures, processing/loan costs, and third party costs. Saving a few bps on a multi-million dollar mortgage is money that stays in your pocket. Your Broker can make this happen.
At the end of the day, commercial mortgage financing and brokerage is about relationships. A qualified and experienced mortgage broker will have multiple lender relationships in place who can offer a wide range of lending options. Yes, there are costs involved, however an experienced Broker can save you money, source the appropriate lender for your purposes, expedite your application, and will use their expertise to advocate on your behalf.
Consider using a Mortgage Broker to ensure your needs are met and that you source the most competitive commercial mortgage terms and conditions.