Working With a Commercial Mortgage Broker

As specialists in commercial lending, commercial mortgage brokers are well-versed in the structure, requirements, and options of commercial mortgages and know how lenders vary in their processes, criteria and lending parameters for different product types. They therefore save borrowers valuable time spent shopping around, as they do the legwork and then present the options that best suit your borrowing needs.

When population growth can be accommodated within an existing urban area, its land and infrastructure can be used more efficiently – such as roads, schools, water pipes, municipal services and more. In other words, development in already urbanized areas makes use of the existing strengths and resources of a city, instead of spreading them across a widening geographical space. From lawyers to consultants, agents to developers, commercial real estate brokers are well connected to the market. From cap rates, to interest rates to regulatory requirements, an experienced commercial mortgage broker can help give you the inside track and ensure that you are making a fully informed real estate decision.

There is a fair amount of due diligence required when financing a commercial property. For instance, lenders may require a building condition assessment – a step that helps you decide if the property is worth buying and what issues you may encounter as the owner.

Some also require an environmental assessment, which helps identify the existence of soil or ground water contamination, as well as the presence of asbestos, lead paint or mould in a building.

Both of these assessments can be quite comprehensive. A commercial mortgage broker will be able to connect you with relevant experts and can assist in guiding you through more complex situations, including how they will affect your financing needs.

Applying for a commercial mortgage can come with its share of required documentation – from operating statements to property tax statements to lease agreements and rent rolls, there is a lot of supporting information to gather. When you work with a commercial mortgage broker you work with one point of contact, through which you can submit all of your supporting documentation. An experienced commercial real estate broker will then consolidate this information into a concise, well-structured package for presentation to their lender contacts. This simplifies the process, ensuring the proposal is clear and that it communicates the details of the proposed transaction along with the clients preferred financing terms. This step ensures lenders provide timely responses and their most competitive financing terms, simplifying what could otherwise be a timely and complex process.