Commercial Mortgage Broker

A commercial mortgages broker is an individual or service that arranges mortgage financing for businesses.

The broker does this by gathering a package of basic information from the mortgage applicant and submitting it to a number of mortgage providers. The mortgage providers look over this information and may or may not make mortgage offers to the applicant.

The mortgage broker makes a profit on this transaction by charging a fee every time they arrange a mortgage. A reputable mortgage broker should never charge a fee unless they actually arrange a mortgage offer that the applicant is willing to accept.

Advantages to Using a Commercial Mortgage Broker

The main advantage to using a commercial mortgage broker is that you have a person with expertise and knowledge of the mortgage industry helping you search for a mortgage. A good broker should know which providers will be most willing to work with you and what you will need to do get a mortgage.

Another advantage to using a commercial mortgage broker is that a good broker should have extensive industry contacts and good working relationships with a number of mortgage lenders. This means that the mortgage broker should be able to get you deals you couldn’t locate yourself.

Some business owners may not have the time to search for a mortgage themselves. Others may not have any knowledge or experience of the commercial mortgage industry. A good mortgage broker can guide such people through the mortgage process.

Disadvantages to Using a Commercial Mortgage Broker

There is a downside to using a commercial mortgage broker that business owners should be aware of. Commercial mortgage brokers do charge fees which can add to the cost of a commercial mortgage. Some commercial mortgage brokers may also charge applicants and others fees even if they don’t find them a mortgage.

Unscrupulous mortgage brokers may have sweetheart relationships with mortgage providers. This means they will steer customers to a particular mortgage provider because they get a higher commission or kickback from that provider. Such a deal could lock a business into a mortgage that is too expensive or limit choices.

A mortgage broker may also limit mortgage choices only to mortgage providers he or she works with. This could also result in higher mortgage costs.

There are also fraudulent mortgage brokers that charge business owners a fee to find financing. Never pay a fee upfront to a mortgage broker because in such an arrangement the mortgage broker has incentive to find you a mortgage.

Online Mortgage Brokers

Many of the commercial mortgage websites out there are really electronic mortgage brokerages. Like a real world mortgage broker these sites take your information convert it into an application and shop it around to several mortgage providers.

The advantage to these sites is that they are usually fast and easy to use. The disadvantage to these websites is that they may have sweetheart relationships with mortgage providers that could limit your mortgage choices.

You can increase your mortgage choices and your chances of getting a really good deal on a mortgage by using several different mortgage websites. This will give you the most choices and best chance of getting a good deal on a commercial mortgage.