Lending tip: When procuring a loan...never do this
1 Reply
Micah Kohls
posted about 1 year ago
When engaging with a lender of choice never commit to a loan deposit if the loan still needs to be approved by loan committee.
Until loan is accepted by loan committee you are simply no more than just prequalified by a sales person. The term sheet is not binding for the lender. Your deposit commits you to that lender even if the terms change.
Chris Mason
(Moderator) -
Lender from Oakland, CA
replied about 1 year ago
Commercial loans are all about relationships. With rare exceptions, no one else has "loan committees" but commercial, and maybe HML if they are handing out fancy titles.
I wouldn't suggest finding a commercial mortgage by asking other commercial property owners their rate and calling whoever has the lowest. I would strongly suggest asking other commercial property owners about how productive their relationship is, and calling the winner of THAT competition.