3 Benefits of Working with a Direct Lender

By: Zack North

Why weave through a maze if you can go straight to the finish line? When you partner with a direct lender on your commercial mortgage, you can eliminate much of the difficulty that comes from juggling bank and broker relationships. If traditional lenders have left you with no clear path to a funded loan, take your request to a direct lender and skip the maze altogether.

There are many advantages of purchasing or refinancing a commercial mortgage through a direct lender. The main benefit is the familiarity and relationship you will be able to build with the lender’s team of experts. Once they become familiar with your financial situation, they’ll work with you one-on-one in order to figure out the best commercial mortgage program possible.

The Benefits of Working with a Direct Lender

Here are 3 additional benefits of working with a direct lender to secure your commercial mortgage:


1. Flexibility

Another main advantage of working with direct lenders is that they’re usually more flexible when working with borrowers whose credit scores are not as desirable as a bank would like. Direct lenders also require little to no seasoning on title and offer reduced documentation programs that make sense for the small-business owners and investors who have a common need for commercial mortgage financing.

Quality direct lenders work to understand the specific needs of borrowers before recommending a particular product or program. This ensures you are getting the loan terms that best meet your commercial mortgage needs. And if you do have questions or concerns, you can be confident knowing that you’re communicating with the lender itself and not a third party.

2. Timeliness

Direct lenders generally only offer mortgage-related services, making them more specialized than banks, who typically handle multiple services at a time. This gives direct lenders more time to focus solely on closing your loan, which can be completed in about 35 days versus several months with a bank.

Also, since most direct lenders process and fulfill commercial loans in-house, the mortgage stays in one place throughout the process. It also means accurate, timely updates at each stage.

3. Save Money

Using a mortgage broker to help you secure a commercial mortgage is a smart movie in many situations. But if you are a price-conscious consumer, you may wish to avoid the origination fee and other additional fees that you can expect to pay when working with a broker.

All lenders must charge certain fees and costs for processing the loan. But mortgage brokers add to these costs in return for the services they provide. If you want access to a number of lender options or you’re too busy to conduct your own research, partnering with a broker and accepting the extra fees makes sense. However, if you have a good idea of the type of loan you want you can save yourself some money and work directly with the commercial lender.

Bonus: Tips for Working with Direct Lenders

If you are still trying to figure out which lender fits your needs, here are some tips for finding and working with the right lender.

  1. Ask for Recommendations — Look to friends and business neighbors for suggestions, especially if they’ve recently obtained a commercial loan.
  2. Do Your Homework on the Commercial Mortgage Processes — Learn what to expect with typical commercial mortgages and ask questions if something doesn’t look right.

Partnering with Commercial Direct

Commercial Direct is a direct lender that offers competitive pricing and flexible terms on loans from $250,000 to $2 million. Our team has closed and funded more than 20,000 small commercial loans, and we specialize in working with business owners and investors to help them get the funding they need — fast and hassle-free.

Author: Zack North

Zack North is the Director of Marketing for Commercial Direct.  As a regular contributor to a number of top industry publications, Zack enjoys writing about topics that help investors and business owners approach commercial mortgage financing with confidence.

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