Well, if you don't want to, you don't have to!
Anyone who wants a commercial mortgage can apply and negotiate directly with any commercial lender. However, some commercial mortgage lenders will only work with professional mortgage brokers.
Realistically, the real question is, "Do I have time to keep track of all the constantly changing product changes, offers, restrictions, and chances?" Because a commercial finance broker's full-time job is to build a network of commercial mortgage lenders. Not many business owners, real estate developers, or investors have the time to keep up with the market, which is always changing.
If you don't at least ask a commercial mortgage broker for free advice, you might be giving up a big advantage when it comes to getting the best deal.
"Do I have to pay a broker fee?" might be the real worry that most people have. Again, the short answer is "no." In most cases, a broker has no reason to charge a fee for setting up a standard commercial mortgage. This is because the business lender who gives the money usually pays the broker. But on the rare occasion that the negotiations take longer than expected to bring in money, it may be necessary to agree on a fair fee.
Mortgage lenders at both the high end and the low end of the property lending spectrum work closely with independent commercial finance brokers. Their experience lets them know where a particular project will "fit," and it may also help them find a solution that is better than the "obvious" one the client was expecting. The broker's stated goal should always be to find the best way to meet the needs and circumstances of the client.
As was said at the beginning, the borrower is the only one who can decide whether or not to use a commercial mortgage broker. In the real world, a business or person with a steady income, a good credit history, and a good-sized deposit has no reason to need help. In that situation, the big banks are falling over themselves to offer very attractive commercial mortgage rates.
The commercial mortgage market is changing, and now lenders are eager to help new businesses, businesses with bad credit, and even businesses that don't have any accounting information. Most likely, these are the kinds of businesses that could use the help of a commercial mortgage broker the most.
Using a commercial mortgage broker can save you a lot of time, but it also has many other benefits. But it's up to the client or borrower to tell their broker the truth. Right from the start, you need to tell the truth about any past credit problems, missed mortgage payments, unhappy suppliers, etc.
When working with a commercial mortgage broker, it's important to find out right away if you have to pay a fee. Never pay any fees up front, and always make sure you've read and understood the full terms of any brokerage agreement. There are a lot of very skilled and professional commercial mortgage brokers out there who are willing to help and don't charge crazy amounts of money.
