If you have ever thought about financing a commercial real estate property, the thought of using a commercial mortgage broker may have crossed your mind. Some people may have thoughts that a commercial mortgage broker is more expensive to use a broker rather than go directly to a lender. This common belief is a myth.
Reality is there are a number of ways in which you can save money by engaging a mortgage broker to provide assistance with your commercial real estate financing goals. If you research to determine the value of using a commercial mortgage broker, you will surely see that it is a great investment to have a CM broker.
Risks in working with a Single Lender You may spend the time and locate a single lender that can meet your needs, by working with a single lender or bank you are putting all your eggs in one basket. The approval process can take a good deal of time that you may not have. Then what happens if the loan application is not approved by that specific lender? Can you afford to go through the process a second time risking more time? By working with a broker, your loan application can be submitted to multiple lenders. This not only increases the chances that your loan will be funded, but it also gives you as well as your broker more power to get the best deal for you.
Finding a Lender Finding a lender to fund your commercial mortgage is not as easy as it may seem. Due to the wide range of property types, loan types and special circumstances, a single lender simply cannot offer loan programs for all potential loans. You will be wasting a considerable amount of time trying to find a lender that offers the programs you need. A qualified and experienced mortgage broker will have multiple lender relationships in place who can offer a wide range of lending options. Some brokers may even have relationships in place that give you access to hundreds of other lenders offering many different options.
Cost May Vary between Lenders One of the most significant ways in which you can save money by using the services of a commercial mortgage broker rests in the fact that there can be notable differences in the interest rates, costs and other fees charged from one lender to the next. A broker will help you in identifying the most reasonably priced options available from these different mortgage lenders. On first blush, the cost differences from one lender to another may seem small. But remember, in most instances we are talking about loans in the millions of dollars. Even if the interest rate difference is minimal, over time this can add up to a significant amount. At GROW our commercial mortgage brokers are often provided with special rate options based on the volume of business they bring to a lender and this rate savings is passed along to the borrower.
Support Services Another avenue through which a commercial mortgage broker can help you save money is through their existing relationships with other industry professionals. A good commercial mortgage broker has a network of professionals including appraisers, accountants, lawyers and other service providers that they work with on a regular basis. Not only do you not have to spend the time to find these required resources on your own, but often times you can get a reduced rate on the services due to the brokers existing relationship. Furthermore, a good commercial mortgage broker will have a staff of professionals to see the loan through to the closing. It often takes a good team to have a commercial mortgage closing go smooth.
Commercial Mortgage Broker Fees It is true that in the end, you do pay a fee for utilizing the services of a commercial mortgage broker. We will work with you to make sure your needs are met. With GROW you are paying for a professional to be at your side.
Our commercial mortgage brokers have solid relationships with numerous lenders and will immediately match you up with the best lender based on your goals. Regardless if its a construction loan, long term fixed rate loan or bridge loan, a qualified broker will be able to provide guidance in choosing the best lending source. If timing is an issue, the broker will be able to leverage their long term relationship with the lender. At GROW we are your go to people in the commercial lending marketplace.