You might get the impression that the utility of an agreement is heavily focused on the broker. In reality, you will also get considerable benefits. In the following sections, we look at what a mortgage costing contract entails, what its purpose is and why you need it. I teach a separate broker course from the fee collection of commercial mortage for only $199, which comes with a model fee contract. I strongly encourage you to take this course. It can be the turning point in your career as a commercial mortgage agent. I was so often unscrewed from my commission as a commercial real estate broker that I went to law school and became a lawyer. Imagine you go to law school with two children in diapers. I have never missed a teaching day. I gave all the information. I finished my studies with honors.
I did all this because I was sorry to be unscrewed from my mission. The decision to work with a mortgage expert is a big decision, but it can ultimately pay off. Lower rates, a smoother application process and access to more choices are important benefits. Working with a mortgage broker is one of the fastest, most efficient and affordable ways to secure commercial financing. A broker will work on your behalf to find competitive interest rates with lenders that you may not have access to in the public market. Your financing program is tailored to your needs, which gives you better terms than a large lender. You`ll also quickly learn that commercial mortgage borrowers don`t appreciate the value of your time. They will work for hours and hours… and cancel without reasonable legal cause on you. Your attitude is: “Everyone knows that you don`t owe your mortgage broker a fee unless the deal is done.” If you work with a credit professional without a commercial mortgage contract, would you trust that they work in your best interest? If a mortgage expert didn`t have protection, what incentive would he have to find you a mortgage that works? Of course, to enjoy all the benefits, you must sign a commercial mortgage fee agreement. Commercial mortgage borrowers lie all the time.
They lie about the fact that destination property is in the contract. They lie about the money to make the down payment. You lie about the purchase price. On refinancing, they tell great stories about the value of their commercial property. They retain vital information about their past credit problems. You`re lying. If you have a fee contract with them (you support a commercial credit), you can sue him if you lied. A brokerage pricing agreement is a necessity for both parties.
It can inspire confidence on your side while making sure the broker will not hesitate to work for the best result. You probably think that the purpose of the pricing agreement is to protect you from the borrower who refuses to pay your commission at closing. This happens occasionally, but not very often. Until most commercial mortgages are ready, most borrowers are exhausted, impatient and eager to close the deal.