When buying a piece of commercial real estate, deciding whether to get a mortgage broker or go directly to a lender is something one must consider.
1. Going directly to a lender, the investor must be educated. There are many different loans out there and you must be able to differentiate between them. By using a mortgage broker, they are there to guide you through the process from beginning to end and you will have an expert on your side.
2. Going directly to a lender, there is a chance you will not be qualified and the process is a long one so you will have to start over with a new lender. Brokers on the other hand have a number of lenders they work with so they are able to feel around to see what sort of lenders you may be able to get a loan from before going down the long road and not qualifying.
3. Mortgage brokers act as a go between during the lending process. They are working for your best interest to get you qualified and the loan closed since they only get paid if the loan closes.
4. Brokers know what lenders like to see in loan application and they ensure that loan applications are prepared and presented in that particular way giving the applicant the best chance of qualifying.
5. Many mortgage brokers go beyond the mortgage search and do more to simplify the process and offer advice on mortgages. Brokers look to build a relationship with their clients and offer assistance where it is needed,” says Don Frommeyer, NAMB president. “Whether it is helping with basic understanding of credit or acting as a helping hand throughout the entire mortgage process, brokers tend to be more helpful than the banks.”