Commercial Mortgage Brokers

Can I trust a commercial mortgage broker? What are the benefits of using a broker? When should I use a commercial mortgage broker instead of trying to go straight to a bank? These are some very common questions that many people have when thinking about commercial mortgage brokers.

Usually, a good broker knows their market and they can acknowledge all the facts about the process involved in acquiring a loan. They are well versed with it from head to toe which makes it easy for us to assign everything to him. He is responsible for the preparation of all the required documents and legal actions which makes it an easy and hassle free transaction for us.

Yes, they have a better knowledge of current rates, terms, prepayment penalties, fees, etc. Many also have correspondent relationships because of the loan volume they do with specific lenders and may be able to get you a lower rate or better terms because of it. They typically know which lenders drag they feet and have slower due diligence time lines.

If you do not use a broker, most banks will charge you a 1/2 point to a 1 point fee. This fee is usually removed when a broker is involved so using a broker is usually not much more expensive than applying for a loan yourself. Brokers typically have access to the decision makers at the bank. They can reach people that you will never even hear of. Better communication equals a better chance at getting your loan approved.

In a word, commercial mortgage brokers can be a very valuable asset to you individually. Build a relationship with them and gain access to their many years of information. You will find that this will save you hours and hours of research.