Mortgage Broker:- Represents the borrower understanding his/her
needs in detail.
- Packages the deal and presents it to the appropriate lender based on the strengths of the client.
- Has
a wide knowledge of different loan programs offered by different lenders so generally when the deal is submitted it is practically
already approved.
- Has a variety of lenders to present the loan proposal.
- By working with different lenders
the broker can negotiate better pricing and loan terms for the client.
- Licensed by the Department of Real Estate.
Direct
Lender:- Represents only the lender, keeping with the lender's best interest not necessarily the
client's.
- Is only able to offer its own company loan programs with a strict set of guidelines.
- Can only
approve loans based on their guidelines and not outside the box.
- Pricing is pre-set by the lender's guidelines.
- If
the lender turns down the loan, the customer has to reapply and start the process somewhere else.
- Doesn't require
the employee to be licensed and employees are generally trained by the bank's specific guidelines.
If
you are working with an experienced and knowledgeable mortgage broker, having your transaction approved should be a breeze.
There are many lenders and many lending programs, but NOT ALL LOANS ARE CREATED EQUAL. Having the right partner on your side
can make a big difference on your bottom line.
For example: did you know that the general Cash
Flow requirement for loans on multifamily (5+ units) properties is 1.15 to 1.25 (Debt Service Coverage Ratio) and that there
are programs available that will lower that requirement to .80 DSCR making available almost a 30% larger loan amount? (Loan
to values and funds availability change per property)
For a free consultation and analysis on your current
or prospect properties please contact us immediately. You'll be surprised with the new outcome that may be
available to you!
