Start mortgage lender search with friends in the industry - Kansas City Business Journal:

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If your business has neved sought out a mortgage loan to purchase a commercial property, then you will most likely need professionalo assistance in the form of eithet a mortgage broker or mortgags banker. The major differencew between the two is that a bankeer is connected to a lenderd or multiple lenders while the brokerd works directly forthe borrower. Kiera n Quinn is on the board of the Mortgages Bankers Association and is vice chairman of the mortgaged bankWalker & Dunlop Inc. He said the first step in the procesas is to talk with friends in the constructionb industry and see which brokers and bankers they use.
Interview at leasrt three and have a series of standard How much business dothey oversee? What lenderes do they use? What kind of business arrangement do they personallt have with those lenders? Who have they closedd loans with in the past year? Who do they representt on a regular basis? It’s also importantf to have a sit-down discussion with the candidats to make sure you get specifif answers to your questions.
By bringing the brokerd or banker to your it allows a developer to get an understanding for how that perso n understands the strategic goals ofthe “If the property is ready I thino it’s a good thing to bring them down for a walk-thru becausr it’s important to see what questions they Quinn said. “Then you might find out that this person grew up inthat area, they know that they’ve done three similadr deals. You start to feel more comfortable with them and you get their ideas and see if theymatch yours.” Warremn Higgins, senior vice president at Capmark Finance Inc.
, said it’sx important for a developer to sit down and map out specifi plans for the How long do they want to own it? How much debt are they willing to absorb? How long should the period be for the loan?? Do they want a fixed or floating rate loan? What kind of capital service do they want to use to fund the project Quinn said a fixed-rate is best when a developet already has an anchor tenant signed to a long-termk lease. Possible capital sources include insurance commercial banks and commercial mortgagebank securities. Higgina said that once a borrower develops the capital sourc and the terms ofthe loan, it’s then time to seek competitiv e bids from lenders.
Important factors to considef are the amount of loan proceed s and the interest rates forthe loan. Red flagzs can be raised when the lender prolongs the process with a largse amount oflegal documentation. “Some borrowers will jump through hoopsx for lower interest ratesa and others will instruct thebanker [or to just get it over Higgins said. “But you do have to do your shard ofdue diligence. You want to know when does the lender lock or fixinterest rates? And does that require a larger deposit to do so?” Quinn, though, said whilwe it is vitally important to have legal representation at such meetings, it is up to the borrowetr to keep eyes on the ultimate goal.
“Yoyu don’t want your lawyer to come in andplay hero,” Quin said. “If they drag out the procesxs that often only serves to increase yourlegalp fees. If you know what you want in the deal, make sure the terms are reasonable andmove