The main focus of a commercial mortgage broker ought to be on how they can minimize the time spent, stress and maximize savings of their clients. Bottom line here is, brokers have the expertise and experience that makes them valuable for any borrower who might have little to no knowledge of this daunting and complicated process of closing commercial mortgage.
As a matter of fact, there are several benefits included when working with one and some of it are discussed in the next paragraphs.
Number 1. Introduce you to several loan programs not offered by your bank – a lot of the commercial mortgage brokers would present potential borrowers unusual loan programs. Lenders do offer unconventional loan programs including but not limited to commercial 30-year fixed, second lien position loans, stated income loans and so forth to which bank branches don’t offer. Rather, these lenders are depending on mortgage brokers in producing their loans. Therefore, brokers may provide more options.
Number 2. Brokers can offer solid lender recommendations – the real difference between lenders may be hard to uncover. What appears to be the obvious is that, finding lenders/banks that are quoting the lowest rate and offering the best terms.
The more significant issue is, which lender are re-trading borrowers, closing loans and not taking application fees or has a highly painful underwriting procedure where the broker generates profits. This knowledge is earned only by being involved on a regular basis in the industry and also, by closing several commercial loans.
It is possible for brokers to close 2 or 4 commercial mortgages in their lifetime but any experienced and seasoned broker is able to close the same figure in just a month. This experience is vital to help borrowers attain their goals.
Number 3. Brokers are on same side of the spectrum as the borrowers – brokers are paid to close loans but when compared to bank loan officer, that’s on a salary and at the same time, with weekly meeting quota, application quota and the likes, their agenda may not be just about figuring out what is the best route in closing the loan.
Number 4. Commercial brokers save you decent amount of money – by generating a competitive environment with relevant lenders to your situation, good brokers can have several funding sources in completing and producing the best possible pricing. If ever the broker has solid reputation with the lenders, they’ll take loan packages a lot more seriously and take more time with it. The lenders may even be pressured of not re-trading the deal with the fear of losing future transaction with the commercial mortgage broker.