A commercial mortgage broker might be something you’ve considered if you are thinking about financing commercial real estate properties.
If you’re like many people, you might have considered using a commercial broker to help you with your mortgage. You may believe that it is more costly to use a broker than to go directly to a lender. This belief is false.
There are many ways to save money when you engage a mortgage broker for assistance with commercial real estate financing. You will see the benefits of using a commercial broker to help you with your mortgage financing needs and objectives.
Finding a Lender: It isn’t as simple as it seems to find a lender that will finance your commercial mortgage. A single lender cannot offer all loan programs due to the variety of loan types and property types. It can take a lot of time to find the right lender for you.
Experienced and qualified mortgage brokers will have many lender relationships that can provide a variety of lending options. You may be able to access hundreds of lenders through some brokers, which can give you an incredible range of loan options.
The risks of working with a single lender: While you may be able to spend time finding a single lender that meets your needs, it is not a guarantee. You are not putting all your eggs into one basket by working with only one bank or lender. You may find the approval process takes a lot longer than you expect. What happens if your loan application is rejected by the lender? Is it possible to risk repeating the same outcome if you go through the loan application process twice? Your loan application can be submitted multiple lenders by working with a broker.
This will increase the likelihood that your loan will get funded. It also gives you and the broker more bargaining power so that you can negotiate the best deal.
Cost Differences between Lenders: This is one of the best ways to save money when using the services a commercial mortgage broker. There can be significant differences in the interest rates and costs charged by each lender.
A broker can help you find the best priced options from different mortgage lenders. At first glance, cost differences between lenders may appear small. However, we are often talking about loans that exceed millions of dollars.
Even though the difference in interest rates may seem small, it can quickly add up to significant amounts of money over the long-term. Many times, active commercial mortgage brokers receive special rates options based upon the volume of business that they bring to lenders. This rate savings is passed on to the borrower.
Support Services : A commercial mortgage broker can also help you save money by establishing relationships with industry professionals.
A reliable commercial mortgage broker will have a network of professionals, including accountants, lawyers, appraisers, and other service providers, that they can work with regularly.
You don’t have to search for these resources yourself, and often you can negotiate a lower rate due to your broker relationship. A good commercial mortgage broker will also have a team of professionals who can help you through the entire process. Secure a commitment is only half the battle. To get to the close efficiently, it takes a village.
Fees for Commercial Mortgage Brokers: You will have to pay a fee to use the services of a broker. As many commercial investors have found, working with a broker to help you ensure your needs are met, and you get the best deal.
Bottom line, what you’re paying for is a professional to represent your interests. A lawyer will protect your rights in legal matters, similar to how a lawyer does. A lawyer is something you wouldn’t take to court without. Don’t finance your commercial mortgage with a broker.
A commercial mortgage broker with solid relationships will be able to match you with the right lender for your specific needs. A qualified broker can help you choose the right lender, whether you need a bridge loan, construction loan, or long-term fixed rate loan. The broker can leverage their long-term relationship with the lender to expedite your request.
Everybody needs an advocate from time to time – a commercial broker can help you navigate the commercial lending market.