Commercial mortgage brokers should help their clients save time, money, and aggravation. The bottom line is that the broker’s experience and skills should be beneficial to the borrower, who may be unfamiliar with the often complicated and intimidating process of closing a commercial mortgage.
Working with a commercial mortgage broker has a number of advantages, including:
- Introducing you to loan products that your local bank does not provide.
Most commercial mortgage brokers can introduce borrowers to lending programmes that aren’t readily apparent. Unconventional lending programmes (such as stated income loans, commercial 30 year fixed or second lien position loans, and so on) are not available through banks. Instead of producing their own loans, these lenders rely on mortgage brokers. As a result, brokers can provide borrowers with more options (typically much better choices).Feel free to find more information at North Strathfield mortgage broker.
- Brokers can provide you with trustworthy lender recommendations based on their knowledge of the sector.
It can be tough to discern the true differences between lenders. The obvious information, such as which banks/lenders are offering the best rates and terms, will be pretty easy to find.
Where a broker makes his fee is on the more significant factors, such as which lenders are re-trading their borrowers, actually closing loans rather than merely receiving application fees, or having a highly “painful” underwriting process. This information can only be gained by working in the sector on a daily basis and closing a large number of commercial loans.
A smart broker will close 2 to 4 loans every month, but most borrowers will only close 2 or 4 commercial mortgages in their career. This knowledge is crucial in assisting the borrower in achieving their objectives.
- Brokers and borrowers are on the same side of the table.
We are compensated for closing loans. Obviously, when compared to a bank loan officer who is paid a salary and has weekly meeting quotas, weekly application quotas, and so on, their motive may not just be to figure out the best way to finalise your loan. So, to safeguard his or her job, a bank loan officer may “lead you on” to take your application – and waste your time.
- Commercial brokers should save you money rather than charge you a fee at the bank.
A smart broker will get numerous funding sources to compete and create the best cost feasible by creating a competitive atmosphere with applicable lenders to your circumstances. Lenders will take the loan packages more seriously and spend more time with them if the broker has a good reputation with them, believing that it is a legitimate transaction. Lenders will also be under increased pressure not to re-trade the deal for fear of losing future business from the broker.
- A good broker should make the whole process go more smoothly.
In a similar vein to number 2. Based on the borrower’s complex and unique set of circumstances, a good broker should be able to identify solid solutions for them. A single tiny detail can often slow or destroy a deal in the middle of the process. A keen broker should be able to notice these little details, which could cost the borrower thousands of dollars or cause months of frustration as the wrong lender wrestles with a file that should never have been in their hands in the first place.