Some people may have trouble getting a mortgage approved, even with a profitable business. Negotiating and gathering financial records like tax returns and bank and payroll statements without the help of an expert is overwhelming. Thus, if you’re having trouble connecting with a lender to help purchase a commercial real estate property, it’s high time you enlist a mortgage broker’s help.
In a sense, mortgage brokers are like matchmakers, helping buyers connect with the right lender. They can guide business owners like you to the available options and give a comparison of different fees and interest rates of any potential lenders.
Purchasing real estate knows that the process can be lengthy. Thus, business owners must seek a reliable mortgage broker to help them through all the daunting tasks. Need more convincing? Listed below are some of the ways businesses benefit from hiring mortgage brokers.
They Are Experts
The truth is that most buyers usually overestimate how much they can afford. Without the guidance of an expert, many will end up blowing their budget. However, when connecting with a mortgage broker, you will quickly understand that there are other things to factor in, like taxes and maintenance costs.
Mortgage brokers will also help you understand how the interest rates and other potential fees might work when getting a loan. Negotiating with lenders alone sounds intimidating, but with a broker on your side, you know you’ll get better rates. For those with bad credit, a broker might even help find a workable mortgage for your business.
Apart from financial concerns, you can also depend on mortgage brokers for legal information when acquiring a commercial property. For example, zoning and land use laws differ in every area. In the US, businesses under commercial zoning laws include hotels, nightclubs, office buildings, and restaurants.
Of course, the local regulations in the US might not be the same as in other countries like Australia. There are many business zones in Australia, like the B1 zone, where small-scale businesses can operate in residential areas. There is also the B2 zone, where you can open your physical store in the center of a town.
Without the knowledge and experience of a mortgage broker, you might not know where to start. If you’re from Newcastle or anywhere in Australia, check out https://watsonmortgages.com.au/ to meet a mortgage broker who can help you navigate through the entire process.
They Help You Save Time And Money
Since buying commercial properties is more complicated than residential properties, business owners must work closely with mortgage brokers to discuss different lender options and requirements.
Loans for self-employed individuals typically require bigger down payments and have higher interest. But, if you can ask your broker to help you with the stringent requirements, you can qualify for a minimum down payment mortgage.
Moreover, mortgage brokers also save you a lot of the legwork. The lengthy paperwork is inevitable, but with their help, you can spend less time worrying about these small matters so you can put your focus back on running your business. What you can do in a week, they can do in a day, all thanks to their established connections with lenders.
They Have The Connections
You will be surprised to hear how many lenders only work with brokers. Due to this, you might not be able to find all the possible lending options without hiring a mortgage broker. From banks to more non-traditional lenders, mortgage brokers have the connection to help you find the most suitable deal for your unique circumstance.
Plus, working with mortgage brokers gives you more bargaining power because the lenders compete for you. On the other hand, if you feel like switching to another lender for whatever reason, they can help too. Upon request, mortgage brokers just have to access your information, and they can switch you to another lender.
They Help Monitor The Process
The process of purchasing real estate property does not happen overnight. In fact, there are many steps before you can call a property yours. A loan approval, for instance, takes a few weeks. Depending on the situation, the property might even stay in escrow for longer than a month.
As a business owner, you know how time is precious. Thus, instead of dividing your attention, enlisting the help of a mortgage broker to monitor the process and give you updates will help you get your mind off the wait.
They Help You Pre-Qualify
If you are unsure of your financial standing, brokers can help you determine how much you can borrow through information like your credit score, source of income, and lifestyle. Then, to qualify for a loan, you will have to send out relevant information and documents to lenders.
You have to be careful to avoid mistakes in your paperwork, though, as financial institutions are very strict regarding mortgages. Just one error in your document can lead to a loan cancellation! To ensure everything will go smoothly, ask a mortgage broker to oversee the process with you.
Final Thoughts
Deciding to purchase real estate for your business is a big move. It can be time-consuming, especially if you have no one to guide you. Luckily, you can hire mortgage brokers who can do the legwork for you, from pre-qualifying to when you close the deal.
