October 28, 2014
When working with a commercial loan broker, it is important to know what to look for in not only a very good commercial loan broker, but also an inferior commercial loan broker. Recently I posted on the subject, “What Are Some Qualities of an Inferior Commercial Loan Broker?” This week I’m posting part 2.
As a summary of part 1, be very suspicious of a commercial loan broker who asks for upfront fees. The exception would be an enormous commercial real estate project, but be sure to do very thorough due diligence on the commercial loan broker anyway.
Other poor qualities of a commercial loan broker: unwilling to give you personal references you can talk with as well as testimonials, is not experienced, unfriendly, pushy, you have a bad feeling about the broker (your intuition is often a good guide), slow to return calls, works at a slow pace to get your loan done.
Here are some other qualities of an inferior commercial loan broker:
- The broker has few loan sources to select from. A very good commercial loan broker has many loan sources to choose from to make sure that they can get you competitive rates and terms.
- The broker only does some commercial loans, but also does residential loans. Look for a broker who just does commercial loans. Why? - because the broker who does both is most likely to not have as much commercial loan experience as the broker who just does commercial loans.
- The broker does not look for new loan sources to serve his clients. Excellent loan brokers keep their eyes open for new loan sources to help give you better rates and terms, as well as give you more options.
- The broker analyzes your finances and subject property superficially. You want a commercial loan broker who analyzes your finances and subject property at a very deep level, and then will run the data through the underwriters/credit managers before you get a letter of interest, and pay for your third party reports.
This means that the decision makers who decide on whether or not they will approve your loan have already looked at your financial and subject property information carefully in advance of giving you a letter of interest.
Call or email me if you have questions concerning this article, apartment loans, or other types of commercial loans, as well as to see if you pre-qualify for a loan. You can reach me at 214-695-7310 and firstname.lastname@example.org
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Bruce Painter, Director of Marketing, Business Loan Store