Choosing a Commercial Loan Provider
Published February 11, 2012
It is very important that you choose a good commercial loan broker to work with in acquiring an apartment loan.
Here is an example of what can happen when you choose an inexperienced commercial loan broker to help you with your apartment loan: You sign a purchase agreement – you have 60 days to close – and you need a loan source that will complete the apartment loan in 60 days. You are given a great rate by a loan broker; it is far below every other loan broker’s rate you have been given. You are assured by this loan broker that he can do the loan.
45 days into the loan process, the loan broker calls you and says, “Sorry, you were not able to qualify for the loan." What he failed to tell you is that he is inexperienced. He procrastinated getting your submission items in, and he should have known beforehand that your property doesn’t qualify for this type of loan. Because of the dela,y the seller cancels the contract, and the property goes to someone else.
It is essential that you do your due diligence and interview prospective commercial loan brokers before you choose one to finance your apartment loan. Here are some qualities that are important in choosing a good if not excellent apartment loan broker:
1. The loan broker has quite a few years of experience. If the loan broker has a senior loan broker helping him who has lots of experience, that can work.
2. You find in doing a search with the Better Business Bureau, and other sources for due diligence, that the broker does not have a bad reputation. It is also important to ask for references and call some of them. Anything you can do in due diligence can save time and money in securing your apartment loan.
3. When talking with the loan broker, make sure that the person seems to take a real interest in you and your needs. They should project a sense of caring and be truly interested in being of service. Some loan brokers may be distant and cold. They do not care about you, and therefore could be less likely to perform well in servicing your apartment loan.
In summary, interview your prospective commercial loan broker – do your due diligence in acquiring your apartment loan.
Be sure to check out our videos on apartment loans.
By Bruce Painter, Marketing Director