If you have ever thought about financing a commercial real estate property, the thought of using a commercial mortgage broker may never have crossed your mind. However, it is something you should consider. Commercial mortgage brokers based are not more expensive to use a than a traditional lender.
How many lenders do the borrower engage with during a typical year? Most borrowers only do one maybe two transactions every few years, unless you are a professional investor. A good commercial loan broker does multiple transactions a month, do they know what is in the marketplace at any giving time. There are many moving parts in a commercial loan and broker is the best setup to find the right deal for the borrower.
It can be risky working with a Single Lender: I have seen it time and again after borrower called me when their loan was turned down two weeks before closing from the local lender. A broker can talk to multiple lenders and make sure the loan goes to the right lender for it to close.
Is the borrower knowledgeable enough to best prepare the loan submission package for the lender? A mortgage broker knows how to package the borrower's loan properly, so its seen in the best possible light. Nothing screams turn me down to an underwriter more than an unorganized loan submission.
Does the borrower’s local lender offer a variety of different rates, terms, and programs? Most banks have the standard package that they try to cram everyone into. A professional mortgage broker will have a variety of different loan options including different fixed periods, different amortization schedules, different options for loan types(Full, Low or Stated Doc).
Fees of Commercial Mortgage Brokers: Most mortgage brokers charge a fee for the service. That fee is usually offset with a commercial mortgage broker because you get the loan you need not the one the bank wants to fit you in.
A professional commercial mortgage broker will have relationships with many different types of lenders and will immediately match you up with the best lender based on your needs. If timing is an issue, the broker will have a much easier time getting your loan closed because of his or her relationships. You hire someone to manage your finances; you hire a CPA; why not hire someone to get you the best loan possible.
Hills Capital can help you find the best loan for your circumstances. We provide 1-2-day term sheets with no upfront costs. Every lender we use has been proving to close loans. For more info.