Your question may be…”Should I utilize the services of a commercial mortgage broker or go direct to the bank when seeking a commercial loan?”This may come to mind when you are entering into a contract for a real estate purchase or business purchase, or simply seeking to refinance your real estate investment.Do you know the differences between the broker and the lender?When you have limited contacts outside of your main banking relationships, you may be losing out on financing options that may make a huge difference on your mortgage payment and/or loan terms.Limiting yourself to one lender removes you from the competition between the banks which can cost you dearly over the short or long haul.This is where the commercial loan broker comes in. And not just any loan broker who says they can get you a commercial loan…but one who has a track record of getting commercial loans funded…preferably an individual or company who specializes in this area of the lending industry. Get a credible referral from a credible person in the industry.The loan broker knows who the aggressive banks are and who are not. Banks can change their loan programs and lending limits frequently depending on their lending appetite. The loan broker will place your loan transaction where there will be the least amount of brain damage all the while tailoring a loan product that will meet your goals.Additionally, the loan broker can in many cases influence the timing of getting your loan funded. Many underwriting issues can be hurdled as well due in part to the relationship between the loan broker and banking staff.A question that commonly arises is “Do I have to pay additional loan costs to go through a loan broker?”In the commercial lending industry, most banks will waive their loan fees and allow the broker to earn the fee instead for bringing the business into the bank, therefore, not costing you anymore in costs had you gone direct to the bank yourself.Due to the current lending environment, lenders are putting borrowers through the meat grinder for 100% compliance with banking underwriting guidelines. Thus, many borrowers struggle to get past the pre-qualification stage due to unacceptable or incomplete financial statements, or simply, the property does not stand up to the banks lending criteria.Get thoroughly vetted by your loan broker as quickly as possible before you begin to search for your property. Attempting to buy real estate before you have been pre-qualified is like pulling the cart before the horse.Typical commercial loan transactions are SBA financing, multifamily, commercial, retail, mixed use, industrial, medical building and other special property types and uses.
Tag Archives: loans
Benefits of Utilizing Auto Title Loans
Automobile Title Loans: A Perfect Fit for Many ReasonsMost Americans use loans to pay for huge purchases, such as a house, vehicle or vacation. They might even secure a loan to go to college. The current economic crisis, however, has affected many people and made it impossible for those without perfect credit to qualify for loans – even loans with very high interest rates. Many people feel stuck, as if they have no options. Many do not want to take a loan out on their house, as they do not want to run the risk of losing their home. “Payday loans”- called that because the lender is expecting to get paid on your next payday- are known to have very high APR’s (annual percentage rates). This means a higher cost to you- the borrower. Furthermore, many do not like to use their credit cards as these types of loans can be very expensive after the interest is added in. And there are no federal laws limiting how much interest you can be charged on a credit card-that comes under the authority of the state that the bank is based in. And if you miss a payment, you can be sure the credit card company will dramatically raise your interest rate on the spot.Thankfully, there is an excellent option available: the automobile title loan.Do you have bad credit? That’s no problem!As its name implies, an automobile title loan allows the borrower to use the title to their car as collateral. Most of these loans are available to people with poor credit; in fact, many automobile title loan companies don’t check a prospective borrower’s credit score at all. This is definitely good news to somebody with bad credit! The decision to grant the loan is made solely on the value of the collateral vehicle. If you are lucky enough to own a high-value vehicle, then you may be pleasantly surprised to find that you can get a fairly high loan amount.Speedy ClosingThese types of loans offer another advantage: quick closing. In most cases the loan application and approval process takes about fifteen minutes, and often less. Some other types of loans (especially loans from banks) can take days (maybe even weeks!) to get approved, adding to the overall frustration of the loan process.Low Amount LoansMany loan companies offer loans in amounts as low as $100; this is unheard of in other types of bank loans, where the minimum loan is $1,000 or more. This is great news for people who need only $200- because they don’t have to add up all that additional interest that comes from the higher monetary value that was loaned. So the end result is that you only borrow the money amount that you need, and are not stuck having to pay interest on money that you don’t want or need. This means more savings for you!Determining the Collateral ValueDuring the application process, the lender examines the vehicle, to estimate the value of the vehicle. This means that the better the overall condition that the vehicle is in, the higher the potential of the loan value. Most use the Kelley Blue Book to gauge the worth of the auto. It is often wise to validate that the lender gets all the right information about the vehicle: the year, make, model, even the type of engine in the vehicle is a factor that is used. It is also wise to inquire how the lender intends to determine that value, and if they refuse to reveal their method, run away. They might be trying to pull a scam on you. This is one of those situations where it is better to be safe rather than sorry. The maximum amount of the loan is usually half of the blue book value. This means that the higher the value of the vehicle, the higher the value of the loan. It is important to understand that borrowers who apply for this type of loan must own their vehicles outright; lenders will not accept a financed vehicle as collateral because the borrower does not yet fully own that car. Valid automobile insurance is usually also required; this should not be an obstacle because all road-worthy vehicles in the United States must be insured before they may legally be driven.From Application to Approval: Fast and EasyAutomobile title loans are an excellent choice for borrowers who own a vehicle and need cash quickly. There are no credit checks, no required lists of character references, and no anxiety-inducing approval process spread out over several days or weeks. Some individuals who take out a loan need some last-minute funds for an important purchase or an emergency medical procedure that cannot be postponed. In many cases, borrowers can apply for the title loan online, and then drive their vehicle to the lender for the inspection. This makes it easier on you. Some title loan companies will even send a representative to the borrower’s home to inspect the car in person.Just the TicketLike all other forms of credit, automobile title loans can be a blessing when life throws a curveball. It seems as if most unexpected and expensive life events happen at very inconvenient times, and many people have had their life savings ravaged by the global economic crisis. When something important just can’t wait- like a surgery or other important health crisis- consider an automobile title loan as the remedy for financial anxiety.