Questions You Need to Ask Your Commercial Mortgage Lender

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Yes, becoming choosing a mortgage lender to help finance your home or apartment, there are certain questions you need to ask your commercial mortgage lender as this is one of your obligations in understanding the concept of a mortgage loan. Therefore, in this article, we will provide a list of tangible questions to ask your commercial mortgage lender.

In the meantime, finding and choosing the right mortgage lender is a better way to secure your mortgage with any unforeseen problems that might rise. Similar to the credit qualification and other requirements needed to get a loan from commercial mortgage lenders or other means. This is also the same for individuals or brokers to also set qualifications in form of a question to ensure that the lender meets your standard policy as well.  

Questions You Need to Ask Your Commercial Mortgage Lender

One way to start securing the right financing you need for your property is to test the eligibility of the mortgage broker with critical questions. While sorting out the right mortgage brokers, there is plenty of question you need to ask to be sure you found the right broker you feel you’re most comfortable working with.

Top 10 Fundamental Questions You Need to Ask Your Commercial Mortgage Lender

Here is the following list of the top 10 questions you should ask as you are searching for the right mortgage broker.

How many years of experience do they have?

Yes, you need to ask the number of years of experience they have been a mortgage broker and most importantly how many years have they been doing commercial lending. A lot of mortgage brokers you see today have just a little or no experience and most work under somebody.

Ask them for a Bio and/or resume

Another question you need to throughout to them is by asking from their bio or resume. Remember to ask for a bio or resume as they are assigned to work for you. This is more like having an interview with them and never forgetting to ask about their experience.

How many lenders do you directly work with?

What you need to watch out for is searching for a lender with a wide range of networking connections with different lenders to find the best terms that suit your preference. Not all lenders might want to provide you with their best terms. But a broker with a vast lender can offer you a variety of interest rates, loan-to-value ratios, and more.

What is the average loan size you work on?

There are quite very important because if you table a deal to a broker with the amount of $2M. Bbut they only source lending on deals greater than $10M if this happens then it is not a good fit.

What kind of loan products do you provide?

It’s good to find a lender that has access to varieties of products. Some lenders, they are only specializing in a particular type of product, while others provide more access to vast products that you need. Such as Conventional, FHA/HUD, Fannie, and more.

Can they give you references from Fannie/Freddie’s direct servicer sellers?

Yes, you need to ask if they can give you references from Fannie/Freddie’s direct servicer sellers. Based on the fact that your broker works for you, it’s ideal to enquire more about your broker’s experience from a reliable source.

Ask for the costs and fees associated with using you as my broker

It’s important to know how much it will cost you to hire him/her. Therefore. Request for a total breakdown of all fees and costs you are required to pay. You wouldn’t want to have a surprising ending. For example, most mortgage brokers charge upfront fees and entitle you to make the payment regardless of whether you close the deal or not.

What is the typical time I can expect to close after the appraisal is ordered?

Ensure that the broker has an idea of the time allotted for each of his lenders to close. For instance, a typical loan takes about 45-60 days to close from the time of appraisal is ordered.

What process do you use to find the ideal lender for my project?

It’s important to understand the method used by your broker to source the funding for your deal. You might be concerned about the method used for shopping. Are shopping around through a network to find an interested party or targeting specific lenders based on your preference?

Do you invest in real estate yourself?

Your broker must have a clear knowledge of the needs of an investor based on securing the most suitable financing for the investor’s strategy.

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