May 21, 2015
In the previous article, we looked at the question of why choose a commercial lender who represents a good number of loan programs as opposed to choosing a direct lender who represents their one loan program.
To summarize this first part,
- With a lender who represents a multitude of lenders, you have many more choices of loans and are likely to get more competitive rates and terms.
- A direct lender who represents only one loan program is less likely to have the knowledge of the loan products that are on the market. Therefore, it’s quite possible that such a lender may not even know that what you need is even available. Many lenders for example only offer recourse loans, whereas our company that represents many loan programs does around 70% non-recourse lending.
This week we are going to cover another reason to go with a lender who represents a variety of different loan programs.
A major concern is that many direct lenders work for banks which have great limitations on what they offer due to having strict regulations that limit loan products:
Lenders who represent multiple loan sources often have the advantage of representing loan sources without such limitations. These include national lenders, regional banks, Wall Street, insurance companies, etc. These lenders do not have the tight regulations and restrictions banks have.
One example is that banks are often limited on how much they can lend. We can on a multifamily property for example, lend even more than 100 million dollars.
A second example is that banks are going to most likely need the investor to have strong income, whereas a company such as ours has some loan sources who not going to require the investor to have strong income.
A third example is that a company such as ours has loan programs that often offer better rates than banks offer.
A fourth example is that a lender that represents multiple loan sources will often have loan programs that do not require tax returns. Banks often do require tax returns.
Contact us if you would like to see about pre-qualifying for our best multifamily/commercial loan rates and terms. Also, keep in mind that another area of expertise for us is bridge lending. Contact us if you would like to discuss your particular commercial lending needs and questions. Call 214-695-7310 or send an email firstname.lastname@example.org