Why Using A Commercial Mortgage Broker Is A Good Idea

Applying for a commercial mortgage is fundamentally the same as applying for a residential one, some of the questions may be a little different, but the answers need to be broadly the same.

It will come down to questions about the security you are offering for the loan, your credit rating and how long you want to borrow the money for. Sure if you already know which lenders prefer your type of business, and you know what their lending ratios are you will probably have little trouble arranging your own commercial mortgage. Most other people will get a better deal if they use a commercial mortgage broker, and here`s why.

Why Using A Commercial Mortgage Broker Is Better

The commercial mortgage market is relatively small compared to the residential market, however it is much more complex. Lenders want to know that their money is safe, and they also want to understand your business. When a doctor or accountant applies for a personal loan the lender immediately knows quite a lot about that person`s income. Commercial lenders want the same depth of knowledge about a potential borrowers business.

This means that when applying for a commercial mortgage a lender will want details about your business credit rating, your balance sheet, the purpose of the loan, along with the location and value of the proposed property.

Applying for a commercial mortgage takes a lot of effort, there are form to fill in, accounts to collate and a 101 other considerations. You want to ensure that you have the best prospects of getting the right deal first time.

Here are a few things to consider:
1. Different lenders have different criteria for approving a commercial loan application.
2. A broker can represent you and submit your commercial mortgage application to the right lenders lenders. Maximising your chances of success.
3. A commercial broker doesn’t usually earn a fee until a loan is approved, which should mean they are prepared to work pretty hard for you.
4. Many brokers get paid by the commercial lender and not you.

It`s easy to get into a mind set of thinking that the first lender to say yes is the deal to go for. Commercial lenders are hungry for the right business so you may be able to negotiate a better deal by playing one off against the other. More importantly it is vital to fully understand the mortgage you are signing. Getting the wrong terms can prove very costly further down the line.

When you do things the right way they just seem to work. Using a commercial mortgage broker can make sure that you get the best result for the minimum work. A that not only gets you the commercial mortgage you need, but also the most appropriate one for your circumstances.

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