Do I Have To Use A Commercial Mortgage Broker

Do I Have To Use A Commercial Mortgage Broker

Do I​ Have to​ Use a​ Commercial Mortgage Broker?
Well,​ the​ short answer is​ that you​ don’t have to​ if​ you​ don’t want to!
Anybody looking for a​ commercial mortgage is​ quite at​ liberty to​ apply and negotiate directly with any commercial lender - although there are some commercial mortgage lenders who will only deal with professional brokers.
To be realistic,​ the​ real question is​ do I​ have time to​ keep track of​ all the​ product changes,​ offers,​ restrictions and opportunities that constantly change? Because building up a​ network of​ commercial mortgage lenders is​ a​ full time job for a​ commercial finance broker .​
Not many business people,​ property developers or​ investors have the​ time to​ keep their fingers on​ the​ pulse of​ this ever changing market place.
Anybody who does not at​ least consult a​ commercial mortgage broker for free advice is​ possibly depriving themselves of​ a​ significant advantage when it​ comes to​ getting the​ best deal.
Maybe the​ real concern most people express is​ Do I​ have to​ pay a​ broker fee? Again the​ short answer is​ 'No' - for the​ majority of​ cases there is​ no real reason for a​ broker to​ charge a​ fee for arranging a​ standard commercial mortgage .​
This is​ because a​ broker is​ usually paid by the​ commercial lender supplying the​ funds .​
However,​ on​ the​ rare occasion where the​ negotiations become disproportionate to​ the​ anticipated revenue it​ can become necessary to​ agree an​ appropriate fee.
Independent commercial finance brokers work closely with mortgage lenders at​ both ends of​ the​ property lending spectrum .​
Their experience enables them to​ know where a​ particular project will 'fit',​ and may also help them to​ find a​ solution that is​ possibly more appropriate than the​ 'obvious' one the​ client was expecting .​
The broker's avowed aims should be always to​ provide a​ solution best suited to​ the​ client’s circumstances and requirements.
As stated at​ the​ outset,​ the​ choice as​ to​ whether or​ not to​ use a​ commercial mortgage broker rests solely with the​ borrower .​
In the​ real world there is​ no earthly reason why a​ business or​ individual with a​ provable income,​ clean credit history and sizeable deposit should need any help .​
In that situation the​ mainstream banks are falling over themselves to​ offer very attractive commercial mortgage rates.
The commercial mortgage market is​ evolving,​ lenders are now eager to​ help start-up businesses,​ companies with bad credit records,​ and even businesses with no accounting information .​
These are probably the​ types of​ businesses who benefit most from the​ services of​ a​ commercial mortgage broker.
Aside from the​ obvious time saving advantages,​ using a​ commercial mortgage broker has many other benefits .​
However,​ the​ onus is​ on​ the​ client/borrower to​ be completely honest with their broker .​
Full details of​ any previous credit problems,​ missed mortgage payments or​ disgruntled suppliers etc .​
need to​ be disclosed right at​ the​ outset.
When working with a​ commercial mortgage broker it​ is​ essential to​ establish right at​ the​ outset whether or​ not a​ fee is​ payable .​
Never pay any fees up-front,​ and always ensure that you​ have read and understood the​ full terms of​ any brokerage agreement .​
There are many very competent and professional commercial mortgage brokers in​ the​ marketplace who are willing to​ help without charging exorbitant fees.

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