Mid Atlantic Real Estate Journal — Financial Digest — November 8 - 1, 013 — 9B
www.marejournal.com
L ender ’ s d irectory Advice from Don Frommeyer, National Association of Mortgage Brokers Five reasons to use a mortgage broker
A
s confidence in the housing market be- gins to grow and more
number of banks you can con- tact so it is best to go through a reputable mortgage broker who has connections with many different lenders. Effec- tive brokers get special rates from lenders due to the volume of business they generate, resulting in a lower rate than you could secure on your own. They may also have special ac- cess to programs at wholesale pricing that individual borrow- ers would not receive. Saves time : Since mort- gage brokers have regular interactions with a wide va-
riety of industry contacts, this process saves time from having to research and call multiple lenders. A mortgage broker can also help with navigating the terms of each lender, steering clients away from those who have confusing payment terms buried in their contracts. transparent Fees : The fees and terms of a contract with a mortgage broker must be completely transparent, with full disclosure of the rate at which the broker will receive. “This is a huge dis-
crepancy between brokers and the banks,” adds Frommeyer. “While a broker will provide a full itinerary of the fees, banks are not required to provide that same information.” AGreater Selection : Gen- erally mortgage brokers have more options than mortgage bankers as there are more lenders at their disposal. Reputable mortgage brokers are well-versed in shopping around to get the best inter- est rate and terms for which their client qualifies, due to having a variety of options to
choose from. Additional ServicesAvail- able : Many mortgage brokers will go above and beyond to get the deal done and do more than simply find the mortgage loan. “Brokers look to build a relationship with their clients and offer assistance where it is needed,” says Frommeyer. “Whether it is helping with basic understanding of credit or acting as a helping hand throughout the entire mort- gage process, brokers tend to be more helpful than the banks.” n
people enter- tain the idea of purchas- ing property, p o t e n t i a l buyers will seek assis- tance wi th t h e mo r t - gage process.
Don Frommeyer
While there are many options available, including going through the bank directly, Don Frommeyer , the president of the National Association of Mortgage Brokers (NAMB) gives five reasons why mort- gage brokers are the best bet for securing a loan: Industry Relationships : In reality, there are a limited SANtA CLARItA, CA — Janet Proscia , Anna Westhoff and David turley arranged permanent financing of $23 million on a one million s/f industrial complex in Los Angeles County. The 10-year fixed-rate loan carried a 4.26% interest rate and was placed with Aviva Investors, which Cronheim represents as correspondent and servicing agent. This transaction marks Cronheim’s second recent LA-area industrial financing, both completed with insurance companies. The Subject con- sists of an 11-building complex situated on over 49 acres just off Railroad Avenue in Santa Clarita, CA, approximately 25 miles north of Los Angeles. Developed in the 1950s-1960s, the Subject Property’s con- struction is primarily metal, with pitched roofs and clear ceiling heights between 19’ and 35’. With occupancy near 100%, the complex’s more than 170 tenants include a wide range of TV and film studios, moving and logistics firms, and several fabrication busi- nesses. Anna Westhoff said, “The property’s age, complex tenancy and construction type gave some life insurance com- pany lenders pause at first, but we were able to show the key location and market char- acteristics that consistently make this complex a magnet. From there, we built a com- petitive debt market around the transaction.” n Cronheim Mortgage arranges $3 million
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