It would seem that the interest rate and loan terms are the most things to look for when choosing what mortgage company to go with, but the question is more complex than that, especially with commercial real estate loans.
When comparing one lender’s terms with another, you’re not choosing those terms. You’re choosing the promise of the lender to do their best to deliver those terms to you. Things like an appraisal, title insurance and final underwriting all come after one chooses a lender and loan terms often change. By the time those terms do change, it’s sometimes too late.
What are the most important factors when choosing a company to represent you in obtaining a commercial real estate loan?
- Experience of the individual lender – The loan originator that you’re dealing with maybe the nicest person in the world, but if they don’t know how to put a loan package together, there are going to be problems. Very often we see loan packages submitted to us from other mortgage brokers with missing information and glaring inconsistencies. These are often due to the individual lenders’ lack of experience when originating loans, especially a commercial real estate loan.
- Creditability of the individual lender – Unfortunately, there are some dishonest people out there and mortgage originators are no exception. They could be telling their customers whatever it takes to get the loan. They could also be presenting misleading information to the mortgage underwriters with your name on it.
- The reputation of the company – Does the company that you are dealing with primarily do commercial lending or residential? How long have they been doing it? How many loans have they closed that are similar to yours?
If you choose a lender based on these categories, you’ll have the best chance for any borrower to get the most favorable terms on a commercial real estate loan.
Gelt Financial has been in business since 1989. Ari Miller, Gelt’s President has been with the company since 1993 and has closed thousands of real estate loans.