Advantages of Using a Commercial Correspondent Lender Says Financial Expert

CRE-Finance helps dispel the myth about working with a Commercial Correspondent Lender.

Investors who have thought about financing a commercial real estate property, the thought of using a commercial correspondent lender may have crossed their mind. 

"However, if you are like some people, you may have debated using a correspondent mortgage banker based on the belief that it is more expensive to use a correspondent rather than go directly to a bank. This common belief is a myth," said Todd Tretsky of CRE-Finance LLC.

"If you take the time to determine the value of using a commercial mortgage lender, you will surely see that it is money well spent."

Todd Tretsky , CRE-Finance LLC

According to CRE-Finance, the reality is that there are a number of ways in which one can save money by engaging a mortgage broker to provide assistance with specific commercial real estate financing needs and objectives. 

“If you take the time to determine the value of using a commercial mortgage lender, you will surely see that it is money well spent”, said Tretsky.

Locating funds to fund a commercial mortgage is not as easy as it may seem.  Due to the wide range of property types, loan types and special circumstances, a single bank simply cannot offer loan programs for all potential loans.

"You may waste a considerable amount of time simply trying to find a bank that offers the program you need.  A qualified and experienced correspondent lender will have multiple underwriting guidelines in place and can offer a wide range of lending options," continued Tretsky. "Good Correspondent lenders have underwriting guidelines in place that give you access to hundreds of loan options."

When asked about, "What are the risks in working with a single lender?" Tretsky explained, "You may spend the time and locate a single lender that can meet your needs, but you are not out of the woods yet.  By working with a single lender or bank you are putting all your eggs in one basket."

CRE-Finance warns that the approval process can take a good deal of time that you may not have.  Then what happens if the loan application is not approved by that lender?  Can you afford to go through the process a second time risking a similar outcome?  By working with a correspondent lender, the loan application is underwritten to hundreds of guidelines. This not only increases the chances that the loan will be funded, but it also gives the borrower more bargaining power.

It is true that in the end borrowers will pay a fee for utilizing the services of a correspondent lender.  However, as many commercial investors have in the past, that working with a correspondent will help ensure that the specific needs are met and that the borrower will get the best deal in the process. 

"The bottom line is that what you are paying for is a professional on your side, someone to watch out for your best interests.  Similar to the way a lawyer protects your interests in legal matters," said Tretsky. "You wouldn’t go to court without a lawyer, so don’t finance your commercial mortgage without a correspondent mortgage lender."

A professional commercial correspondent mortgage lender will have solid relationships with numerous underwriting guidelines and will immediately match you up with the best terms based on your transaction. 

Underscording the benefits of a commercial correspondent lender, investors need of a construction loan, long term fixed rate loan or bridge loan will be able to find the right answers.  

"If timing is an issue, we will be able to leverage underwriting guidelines to garner “express” processing of your request," said Tretsky.

Call CRE-Finance LLC for All your Real Estate needs at 855-515-5585 and ask for Rich Tretsky or Todd Tretsky or visit the website at www.cre-finance.com .

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