The thought of using a commercial mortgage broker may have crossed your mind if you have ever planned about financing commercial estate. However, you may be skeptical of hiring a broker considering it to be more expensive than a mortgage lender.
In reality, there are a number of ways in which you can save money by engaging a commercial loan broker for providing assistance with your real estate financing requirements and objectives. You will find that working with a reputed and well-known mortgage broker will help you ensure that your financing needs are precisely met and you get the best possible deals in the process. Here are a few reasons why it is beneficial to hire the services of commercial mortgage brokers.
Locating a lender
Locating a commercial mortgage lender for funding your mortgage is not as simple as it may seem. A single lender cannot offer loans for all potential borrowers, due to the availability of a wide range of property types, special circumstances and loan types. You may waste a lot of time in finding the right lender that offers a loan you need. A broker has a professional relationship with multiple lenders who can offer you a wide range of lending options to meet your financial needs. Experienced and qualified brokers have a professional relationship with reputed lenders who can provide you access to numerous other lenders providing multiple loan options.
Risks in working with a single lender
You may be putting all your eggs in one basket, by working with a single lender or bank. The approval of your loan can take a unreasonably long time. In addition to this, there is a possibility that your loan application is not approved by the lender. Can you afford to go through the loan application process a second time risking a similar result? Your application is submitted to multiple lenders when you decide to work with an authorized broker. This increases the chances that your loan application will be approved and your loan will be funded.
Cost variation between different lenders
There can be notable differences in the interest rates and other fees charged by various lenders. A well-known and reputed broker will help you in identifying the reasonably priced options available from the different mortgage lenders. Difference in interest charged by various lenders may seem very small but it is important to remember that in most instances we are talking about loans in the millions of dollars. So, even a small difference can result in substantial savings on interest charges.
Commercial loan brokers can help you save money through their existing associations and relationships with other industry professionals such as appraisers, accountants, lawyers and other service providers. These professionals work with the brokers on regular basis. You may have to spend a lot of time to find these professionals and resources on your own. Also, you may get a reduced rate on the services these professionals offer due to the broker’s existing relationship with them.