#1: Waiting to lock in an interest rate will get the best result.

Fact: We recommend focusing on the monthly and annual payments necessary to service the loan being sure that such monthly debt service is well within your range. DO NOT focus on hitting the absolute bottom for interest rates because you may miss a lower interest rate or better mortgage package in the interim.

#2: Working with multiple mortgage brokers will get more market coverage and insures a better result.

Fact: Taking this approach will harm your overall chance of securing the best loan. The fact is that when lenders start seeing the same loan submission coming in from multiple sources they assume that no one is actually in control of the deal. Lenders are less likely to put their best efforts forward in such an uncertain environment.

Our client’s best strategy is to do some meaningful due diligence, check references and select a knowledgeable, well-staffed and reputable mortgage broker. Exclusively engage that broker for a finite period of time, and allow that broker to work the entire marketplace to obtain the best pricing and structure.

#3: Borrowers cannot negotiate significant deal points in the lender’s offer letter right at the beginning, because it is better to negotiate at the closing table.

Fact: For commercial mortgages, a lender’s initial offer letter or term sheet may not have much fine detail. Nevertheless, you and your professionals should bring up any significant points that are important to you at this early stage. Deal terms may be difficult to change once the loan has been approved and the commitment letter has been issued. The offer letter stage is the time to address tax escrows, the lender’s payment calculation method (30/360 or Actual/360), issues of timing (rate lock, closing schedule), and any other points that may be of importance to you BEFORE you’ve posted a good-faith deposit.

#4: My existing Mortgage cannot be assigned.

Fact: In New York State especially, you may be able to have your mortgage assigned, but you must immediately and zealously inquire as to whether a) the old lender will cooperate, b) all the necessary original documents are available, and be sure that c) your attorney prepares a draft assignment of mortgage in a timely manner.

#5: There are no available loan products for your situation.

Fact: When you own real estate, you have many options. Your failure to call Green Door Funding to inquire as to the options will really limit your options. The financing marketplace is ever changing and to get the best result for you Green Door Funding will review the overall landscape to determine your best financing options. We can have access to programs and products that you may not know of or have never considered. Permit Green Door Funding the chance to open your door, it might just be your smartest business move.

#6: All lawyers, brokers and real estate professionals have equal ability to close a Commercial Real Estate transaction.

Fact: Not all real estate professionals are created equal. Most borrowers will end up saving money and negotiating the best possible terms by hiring seasoned professionals experienced in structuring, negotiating and closing commercial real estate transactions. Using a lawyer or other real estate professional who is inexperienced in this very specialized area will only delay the process, run up costs, and will often result in fees and penalties, which could have been avoided.