What are typical brokerage fees for financing?

[Jon Marois]

I am working on a deal trying to get financial for a commercial property and the the lender has listed the following costs. Email form lender; Loan amount – 75% LTV max = $231,750 financing Interest rate – Prime + 1.50% Amortization of 20 years Payment would be $1,512/Month. Borrower would require the following amount of cash to close $309,000 Purchase Price -$231,750 loan proceeds $77,250 Down payment required Plus: $1,160 Lender Fees (0.5% of the loan amount) $6,900 Brokerage Fees (3% of the loan amount) $3,500 Legal Fees (Lender and Borrower side total Estimated) $2,500 appraisal Costs – if not completed and if one is required $3,500 Phase 1 Environmental Cost – if not completed and if one is required $17,560 – Estimated costs Total capital required approximately = $94,810 My question is what are typical costs for Lender fees? And Brokerage Fees? This is through a broker who I am trying. My bank is also running the numbers to see what they can do. 6900 just seemed like a lot . Totally will to listen to any advice. Very new to this whole thing! Thanks

[Ryan O'Mara]

@Jon Marois - There is no "typical" broker fee.  It's on a deal by deal basis because every deal is different.  That's why it's a point based system.

It depends on what type of deal, loan amount, how much time and effort are involved, how quickly does the borrower need to close, etc..

If a broker has to put other deals on the back burner to rush this deal because the borrower needs to close quickly, then the fee will be higher.  If the borrower has IRS tax liens to get cleared up which will take time and effort, the fee will be higher.

Also, not all brokers are equal.  Some are excellent at what they do, coordinate all aspects of the deal between all parties involved and smooth out any bumps in the road (there are always bumps).  And some don't.  

I would recommend you make sure your broker is full service and won't just dump you on the lender to fend for yourself.