Why work with a Commercial Mortgage Broker Vs. a Direct Lender/Bank?

Mortgage Broker:
  • Represents the borrower understanding his/her needs in detail.
  • Packages the deal and presents it to the appropriate lender based on the strengths of the client.
  • Has a wide knowledge of different loan programs offered by different lenders so generally when the deal is submitted it is practically already approved.
  • Has a variety of lenders to present the loan proposal.
  • By working with different lenders the broker can negotiate better pricing and loan terms for the client.
  • Licensed by the Department of Real Estate.
Direct Lender:
  • Represents only the lender, keeping with the lender's best interest not necessarily the client's.
  • Is only able to offer its own company loan programs with a strict set of guidelines.
  • Can only approve loans based on their guidelines and not outside the box.
  • Pricing is pre-set by the lender's guidelines.
  • If the lender turns down the loan, the customer has to reapply and start the process somewhere else.
  • Doesn't require the employee to be licensed and employees are generally trained by the bank's specific guidelines.
If you are working with an experienced and knowledgeable mortgage broker, having your transaction approved should be a breeze. There are many lenders and many lending programs, but NOT ALL LOANS ARE CREATED EQUAL. Having the right partner on your side can make a big difference on your bottom line.
For example: did you know that the general Cash Flow requirement for loans on multifamily (5+ units) properties is 1.15 to 1.25 (Debt Service Coverage Ratio) and that there are programs available that will lower that requirement to .80 DSCR making available almost a 30% larger loan amount? (Loan to values and funds availability change per property)

For a free consultation and analysis on your current or prospect properties please contact us immediately. You'll be surprised with the new outcome that may be available to you!