Mortgage Lender Commercial Loan | Why Good Lenders Won’t Gouge You
Even the smallest increase in interest can represent thousands of dollars in losses over the course of a commercial loan. All a lender has to do is offer you 0.25% over the rate they need to offer you and suddenly you’re paying much more and taking longer to pay off the principal balance.
Lenders also decide your APR based on risk, but risk itself is subjective. It’s for these reasons that many people do not trust that the mortgage lender commercial loan they receive is the best rate possible – there are too many other lenders that may offer you better pricing.
Shopping Around and Settling
It is for those reasons that shopping around is so important. But when you’re shopping around, keep in mind that most lenders – especially those that have been in business a long time – are unlikely to try to gouge you for as much as they can.
That’s because it’s in their best interest as well to make sure you can afford to pay back the loan. In an article in the Scotsman Guide – the nation’s leading magazine for corporate lending – an article on delinquent payments mentioned something that is true among nearly all types of debt – once a person is struggling financially, they tend to stop paying altogether. This is because:
- There is no incentive to pay most, if not all of a payment.
- They are able to get their lender’s attention and possibly restructure the loan.
- They have their own financial needs.
When an investor is forced to pay off a massive debt, they are more likely to struggle to make those payments, which in turn meant they were more likely to stop paying. Good lenders understand this, and will offer more competitive rates not only to win your business, but also because it’s the best way to make sure that you are comfortable with the payments.
While risk will always be accounted for in interest rates, the great lenders will never try to gouge you for one simple reason: they want you to pay back the property as well.
At CRE Lender, we have built connections with the most trustworthy and experienced lenders in the nation. We’re proud to offer our complete support to borrowers that are looking to finance with trustworthy lenders, and we’re confident that we can help you get the best rate possible on your loan. Sign up for free today to find out more.
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