| Your question may be..."Should I utilize the services of | | | | that will meet your goals. |
| a commercial mortgage broker or go direct to the | | | | Additionally, the loan broker can in many cases |
| bank when seeking a commercial loan?" | | | | influence the timing of getting your loan funded. Many |
| This may come to mind when you are entering into a | | | | underwriting issues can be hurdled as well due in part |
| contract for a real estate purchase or business | | | | to the relationship between the loan broker and |
| purchase, or simply seeking to refinance your real | | | | banking staff. |
| estate investment. | | | | A question that commonly arises is "Do I have to pay |
| Do you know the differences between the broker and | | | | additional loan costs to go through a loan broker?" |
| the lender? | | | | In the commercial lending industry, most banks will |
| When you have limited contacts outside of your main | | | | waive their loan fees and allow the broker to earn the |
| banking relationships, you may be losing out on | | | | fee instead for bringing the business into the bank, |
| financing options that may make a huge difference on | | | | therefore, not costing you anymore in costs had you |
| your mortgage payment and/or loan terms. | | | | gone direct to the bank yourself. |
| Limiting yourself to one lender removes you from the | | | | Due to the current lending environment, lenders are |
| competition between the banks which can cost you | | | | putting borrowers through the meat grinder for 100% |
| dearly over the short or long haul. | | | | compliance with banking underwriting guidelines. Thus, |
| This is where the commercial loan broker comes in. | | | | many borrowers struggle to get past the |
| And not just any loan broker who says they can get | | | | pre-qualification stage due to unacceptable or |
| you a commercial loan...but one who has a track | | | | incomplete financial statements, or simply, the property |
| record of getting commercial loans funded...preferably | | | | does not stand up to the banks lending criteria. |
| an individual or company who specializes in this area | | | | Get thoroughly vetted as quickly as possible before |
| of the lending industry. Get a credible referral from a | | | | you begin to search for your property. Attempting to |
| credible person in the industry. | | | | buy real estate before you have been pre-qualified is |
| The loan broker knows who the aggressive banks are | | | | like pulling the cart before the horse. |
| and who are not. Banks can change their loan | | | | Typical commercial loan transactions are SBA |
| programs and lending limits frequently depending on | | | | financing, multifamily, commercial, retail, mixed use, |
| their lending appetite. The loan broker will place your | | | | industrial, medical building and other special property |
| loan transaction where there will be the least amount | | | | types and uses. |
| of brain damage all the while tailoring a loan product | | | | |