Why Use a Mortgage Banker?
Entering the commercial real estate mortgage market as a borrower can be both a daunting and rigorous task. The lending market is filled with many seemingly similar lenders offering terms that can either benefit or potentially take advantage of the borrower. So, it is important to be able to differentiate between loan terms and options and come to a decision on who to trust and who to work with.
Real estate lending is a relationship business. Trusting your mortgage banker and relying on their advice can provide you with several benefits including access to valuable long-term lending relationships, the ability to solve complex issues, and having a dedicated asset manager at your side your entire loan term to ensure the process is smooth from first payment to last.
Below are a few points of consideration for borrowers in the market for a commercial loan:
Make sure your mortgage banker has access to a wide range of lenders: Like the home loan market, commercial loans can sometimes seem like a commodity: if you fit in a specific box, you get a specific kind of loan. A mortgage banking firm like District Capital (Dcap) has a distinct advantage due to their unique access to correspondent lenders that are not available to everyone in the lending market. Dcap works with several correspondent life insurance companies who, as portfolio lenders, can structure their loans as they see fit. Unlike many traditional lenders, they can offer flexibility in prepayment, recourse, reserves, escrows, and locking the interest rate at the time of application, ensuring there is no interest rate risk to the borrower.
Make sure you are working with an experienced team: A trusted, well-experienced team of mortgage bankers, closers, and servicers makes all the difference in being able to successfully negotiate and close a loan. District Capital offers a vast knowledge of all facets of the real estate market including, legal documentation, title, property and casualty insurance, lease reviews, master and special servicers and environmental concerns. This deep institutional knowledge of the market ensures our borrower gets the very best execution in the market place.
Work with mortgage bankers with a strong, ethical track record: We can’t stress this enough. As in any industry, there are always going to be firms who are pretenders. We like to put our money where our mouth is. Ask Kevin about the time he posted a borrower’s application deposit when the borrower was a little light that month! It’s not unusual for us to think outside the box to get deals closed. We drink coffee because coffee is for closers. Ask around. The real estate market is very small. In short order you will learn that the people of this firm can be trusted and are well respected within the industry.
- Non-recourse financing options
- Lock rate at application
- Terms – Floating Rate to 40 Year Fixed
- Minimal to no reserve structure
- We service our loans in-house by one of the most well-respected servicing people in the industry, Crystal Kalinowski
- Nationwide coverage in the US on all commercial and multi-family real estate
- Loan sizes from $1 Million to $100 Million+