When
looking
to secure
a mortgage,
you can
either contact
a lending
institution
directly
or hire
a mortgage
broker to
identify
an institution
that is
right for
you.
Banks
are
one of the
most common
lenders
that offer
commercial
mortgage
loans. Banks
typically
offer the
lowest rates,
but they
also require
the most
documentation
and are
less likely
to grant
loans to
potentially
"risky"
ventures.
If you are
researching
lenders
without
the aid
of a broker,
you should
be sure
to check
out several
larger banking
institutions
to compare
rates. It
would be
especially
worthwhile
to visit
the bank
that handles
your business
checking
account,
as you will
be more
likely to
get favorable
terms and/or
a better
rate.
Hard Money
Lenders
Private
Investors
offer another
option if
you are
not satisfied
with the
terms that
a bank offers
(or are
unable to
provide
documentation
that the
banks require).
Private
Investors
(also known
as hard
money lenders)
are often
willing
to take
on more
high risk
loans and
do not require
as much
documentation.
The main
difference
between
these lenders
and banking
institutions
is that
the funds
come from
a private
individual
or group
of private
individuals
and not
from a company's
assets.
Mortgage
Brokers
If you
would rather
not conduct
the search
by yourself,
you may
want to
consider
hiring a
mortgage
broker.
Mortgage
brokers
will analyze
your needs
and will
do research
in order
to find
lenders
that are
suitable
for you.
In addition
to saving
you time
and energy
conducting
a search
for a lender,
brokers
are usually
able to
secure a
better deal
for you.
You will
have to
pay for
the expertise
and services
of the broker,
and the
payment
typically
is in the
form of
a commission
that is
based on
a percentage
of the total
amount that
you are
borrowing.
You will
probably
also have
to pay for
mortgage
related
expenses.