Commercial Mortgage Lenders - Who Do You Choose? [mortgagedealstips.blogspot.com]
CEO of First Preferred Mortgage Company Mark Walker was featured on Fox Business Mornings C-Suite Sit Down discussing the state of the mortgage industry on September 16, 2009. Learn more about First Preferred at www.firstpreferred.com
mortgagedealstips.blogspot.com Mark Walker of First Preferred Mortgage Company on the State of the Mortgage Industry
Private investors, banks or Commercial Mortgage brokers are some of the options through which you can obtain commercial mortgage. It is preferable to obtain commercial mortgage banker or a broker as your lender than a private investor.
Now between a broker and the banker, it is unto an individual to choose. The advantages of choosing a banker are its low costs transactions and also offer better rates. But the drawback is that the chances of getting selected is minuscule that means that you will be shown the door more often. But with brokers you are likely to find you the perfect solution but it come with a price. Also if you are looking for a special type of loans or deals then heading for a broker is the best thing.
A Commercial Mortgage is very complex compared to a household mortgage loan so do not just dwell on rates and charges.
First, consider how much you can (and should) borrow.
Most standard Commercial Mortgage programs will give you up to 80% of the property value and require you to come up with a 20 to 25 percent down payment. But, if you are willing to pay a somewhat higher interest rate, you can borrow more than 80% and perhaps with less of a down payment. Also, check around with different commercial mortgage lenders to see if you will be permitted to get a second loan against the property if you ever want one. You may well want that option.Also, watch out for balloon payments. These may look highly attractive, but later on when they balloon you could wind up with a payment that drives you nuts--or, you might even lose your commercial property. While you're checking into this, also find out if the Commercial Mortgage is assumable--that is, if you can pay it off early without penalties.
If you can get one that is assumable, this is always the better option, even if you have to take a bit of a higher interest rate.Check out for the processing time of each mortgage transaction by the mortgager as this is the most time-consuming when it comes to getting a Commercial Mortgage. Lookout for lenders with reputation of giving quickly mortgages as it saves you lot of time but are on the lookout for clauses included in the agreement. Each mortgager has their own practice and stipulates conditions which vary from each. If you are going to a bank for a mortgage then you have to deposit some of your assets as a surety while some requires a guarantor.
Different Commercial Mortgage lenders also have different stipulations regarding how much documentation you'll need to provide--both before and after the loan is closed. You may have to pull docs out of your nose; you may be bound to give quarterly reports after the loan is closed, with penalties including possible default if you fail to do this. Make sure you know all about these stipulations before you sign on any bottom lines. If one lender isn't to your liking, talk to another (once again, using a broker can really streamline this process for you if extra cost is no obstacle to you).
And, of course, when looking for a Commercial Mortgage lender, if you find more than one who can meet your personal demands, compare prices: origination, points (if any), processor fees, title searches, and so on.
Related Commercial Mortgage Lenders - Who Do You Choose? IssuesQuestion by i w: Mortgage brokers and loan officers, who are your preferred lenders? Specifically for conventinal and ALT-A. Best answer for Mortgage brokers and loan officers, who are your preferred lenders?:
Answer by May I help You?
The bank or credit union of your checking and savings account. They have a vested interest in keeping you happy. They also have contacts and know the local areas. They can interpret your credit report and help you get the loan you want and need. They will also explain the standard closing costs for the mortgage (which can be in the thousands) Sometimes you roll the closing costs into the mortgage or pay with a check at closing date. And you need property insurance as of that date. You don't want to be surprised at the closing of a property. GOD bless.
Answer by rdncgirl
I prefer LO since all fees are upfront. Brokers hide their fees.
Answer by NinaFresa
Washington Mutual, no closing costs and free appraisal
Answer by CAS
Conventional I prefer Countrywide & Wells Fargo Alt-A I prefer BNC and First Franklin
Answer by CA Mortgage Planner
Wamu & SCME are my preferred lenders
Answer by promortgagegirl
There is no simple answer to this question. Brokers AND Lenders can hide fees. Brokers have the ability to rate shop and do the legwork for you, so they know which lender can give you the best deal and can get you approved based on your situation. Lenders charge points and fees just like brokers, so dont let that deter you from considering a broker. Closing costs are fees that must be paid by law. Keep in mind a NO closing cost loan comes with a higher rate. Brokers have wholesale rates, while lenders give you a retail price. You can get a good deal from either one. A good broker will have investors like WAMU, Chase, Wells Fargo, Indymac, Etc, so they will be able to price your loan or know of the best bank for your specific situation. Credit Unions do not usually offer the most competitive rates when it come s to mortgages, and the are much more strict in their guidelines. If you need any more assistance please feel free to email me at queensherene@aol.com for some good free advice. Good Luck!
preferred mortgage lenders
