Selecting Private Mortgage Brokers
“Tips For Selecting
Private Mortgage Brokers”
As the mortgage market becomes more and more competitive for the residential “A” credit segment, more mortgage brokers are trying to get into the private mortgage business in an attempt to further diversity their product offering.
While there is nothing wrong with more brokers offering private mortgages to their clients, its does present some challenges to individuals that are trying to select private mortgage brokers that can meet their requirements.
Like any type of business service, there is a value to working with experienced private mortgage brokers versus individuals that are trying to learn the private market on the job.
When you go to select a private mortgage broker, there are a number of things you should be considering.
First of all, how long has the mortgage broker been actively placing private mortgages? Over a course of years, mortgage brokers that have a focus on private lending are going to have seen the good, bad, and ugly of private lending and are going to be in a better position to advise you compared to someone without the direct practical experience. Book knowledge is useful, but until its combined with practical experience, the service provided is not going to be as complete.
Second, does a private mortgage broker you are considering have existing relationships with private lenders that fund the type of deal or real estate financing need that you have? Too often mortgage brokers will turn to other mortgage brokers trying to find a source of private money. While this can still work as a method to source private money, the additional degrees of separation between the borrower and the lender can lead to higher costs for placement and delays in getting the funding in place.
Third, has the private mortgage broker placed any of their own money into private money deals. While not a requirement to be a good private mortgage broker, someone that places their own money as well as the funds of their private lender contacts is going to more intimately understand both the decision making process and the administration process for placing and repaying private money.
The benefits of both broker and lender experience can make a considerable difference to a borrower who is looking for the best potential solution to their funding requirements.
If you’d like to learn more about my private mortgage broker services, I suggest that you give me a call and I’ll make sure you get all your questions answered right away.
Click Here To Speak With Toronto Private Mortgage Broker Joe Walsh