Minneapolis, MN · Member since 2015 · 4 posts · 0 votes
Hey Everyone,
I am currently working with a company who uses the Direct Lending method. I understand this allows you to develop a long term relationship with an lender, however does this cause you to pay a higher interest than mortgages some of the bigger "brokers" offer? I am analyzing deals for my first property and wanted to get some feedback on paths that others have taken.
For example, I know the credit union I bank with (BCU) which is tied and has a partnership to my corporate job with Target can land me some pretty good rates. The big concern is that they do not understand the investment approach though. I am open to learn as much as possible and would love to get some opinions on this topic.
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
10y
I personally work with a mortgage broker. I find that brokers have access to many more different types of loan products, while if you are using a direct lender you are limited to that banks products only.
Commercial Mortgage Underwriter / Broker · New York City, NY · Member since 2016 · 193 posts · 75 votes
10y
Russell Brazil makes a good point in his post. Although I guess I'm biased since I work for a commercial brokerage. But all joking aside, a good mortgage broker will be able to match you up with the best banks based upon the terms you want/require. They will also have special pricing depending on how large of an outfit the brokerage is and they will be there every step of the way to make sure they can deal closes. The most important part of my job is execution. After all, we don't get paid until the deal closes. Clients sometimes forget how useful we are until there's a speed bump in the road or something makes the deal go sideways.
With that being said, there's no reason you can't reach out the the credit union where you have an existing relationship. Feel them out and see what products they have and what kind of terms they can offer. Also call a good broker and see what they can bring to the table. Just be sure to upfront with them and tell them you already went to the one credit union.
Good luck.
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