As the credit crisis deepens, many borrowers are realizing that working with a commercial mortgage broker makes a lot of sense and is more important than ever. Virtually all banks and lenders have severely tightened their credit standards to the point that most borrowers are having a very difficult time finding any banks that will even consider their loan requests.
The bottom line, 95% of all commercial mortgage loan requests are being turned down cold. So one of the keys here for the borrower is to figure out which banks are still really funding deals and how to structure the loan request so that it has the highest likely hood of closing and good commercial mortgage brokers know both.
Tapping the experience and resources of a commercial mortgage broker is an excellent way to do this. A knowledgeable commercial mortgage broker is in essence shopping banks and lenders every day and every day for years. The good ones know what is going on behinds the scenes with banks as they have long term relationships with associates that inform them of any internal issues.
The folks in the bank know how important the broker is to their success and will not miss leading the commercial mortgage broker, in fear of destroying the future business. So a commercial mortgage broker worth his “salt” should be able to take you to a bank or lender that’s in a valid position to fund your loan.