Mortgage professionals and brokers alike can spend countless hours and sometimes weeks securing a commercial mortgage. If you work with a broker, they become your representative in the application process. You will actively seek the most competitive mortgage offers with the best interest rates and conditions. If you are looking for an unconventional mortgage or if you do not have the strongest line of credit, then a broker may find options that would not otherwise be available to you. An important and painful lesson that almost all new commercial real estate brokers have learned is always requiring a signed pricing agreement from the borrower. If you consider that a broker is not paid until a mortgage is taken out, they need protection and security. Simply put, an agreement ensures that a broker can do his job without worrying about borrowers leaving the employment relationship. You might get the impression that the utility of an agreement is heavily focused on the broker. In reality, you will also get considerable benefits. You`ll also quickly learn that commercial mortgage borrowers don`t appreciate the value of your time. They will work for hours and hours… and cancel without reasonable legal cause on you. Your attitude is: “Everyone knows that you don`t owe your mortgage broker a fee unless the deal is done.” Of course, to enjoy all the benefits, you must sign a commercial mortgage fee agreement.

I teach a separate broker course from the fee collection of commercial mortage for only $199, which comes with a model fee contract. I strongly encourage you to take this course. It can be the turning point in your career as a commercial mortgage agent. You probably think that the purpose of the pricing agreement is to protect you from the borrower who refuses to pay your commission at closing. This happens occasionally, but not very often. Until most commercial mortgages are ready, most borrowers are exhausted, impatient and eager to close the deal. The borrower does not want to take the risk of starting the four-month application process again by presenting himself dishonourably to the lender. On the broker`s side, the agreement offers an essential non-circumvention clause that prevents you from bypassing the broker and going directly to a lender as soon as an offer has been made. A brokerage pricing agreement is a necessity for both parties.

It can inspire confidence on your side while making sure the broker will not hesitate to work for the best result.