If you use a mortgage broker….how common is this??
And they provide you a lender, why not just use that lender for your next project?

Will they not give you the same terms? Can one go ‘behind the broker back’ by speaking with the lender directly?

Do I need to use a mortgage broker again and pay another fee just to use the same bank? Thoughts?
[{"id": "ht9mc8u", "text": "Depends on what you signed and how you want to do business", "replies": [], "depth": 1}, {"id": "ht9nm1j", "text": "This is a relatively common situation but keep in mind that a broker's job isn't just to introduce a lender, but also to use their knowledge of the market to negotiate the best terms for you. \n\nSo yes, you could use the same lender as your last project and request the same terms. The lender will probably try to do that for you (though rates may have changed, especially given the trends today). However, you might be able to get better terms elsewhere as the lender you went with last time has become less competitive than their peers. You'd have no way of knowing that without a broker or significant time and energy spent on market research and building relationships with other lenders.\n\nUsually a mortgage broker is worth the fee, especially for large loans or long term mortgages where small differences in rate can equate to significant savings. \n\nIf you're really struggling to appreciate the value, I'd recommend asking the broker to run their process but accept a lower fee if you end up financing with the same lender as last time. They'll probably agree to that rather than lose your business.\n\nAs for 'going behind the broker's back', you should assume the broker has a better relationship with the lender than you do and will find out. Now unless it was stipulated in your agency agreement on the first deal, you won't be breaching any contractual obligation, but it could jeopardize your reputation with the broker who you might need on a future financing.", "replies": [{"id": "htbm8q3", "text": "^ this is the correct answer. I\u2019m a mortgage broker and I\u2019ve gotten multiple referrals from buyers brokers where their client goes to the normal bank or credit union and gets an unfavorable rate.\n\nMy job is to shop the loan and 9 times out of 10 I can get them a better rate and more favorable terms. We have access to a wide range of lending sources that the borrower may not even know exist.\n\nIf you work with a broker consistently they will typically work with you on the fee. For example, we will decrease our fee on bridge or construction loans if we know we will be doing the take out financing.", "replies": [], "depth": 2}], "depth": 1}, {"id": "ht9piz3", "text": "I can't answer your question directly but know that sometimes lenders who work with brokers offer a lower rate to brokers than they do to the public.", "replies": [], "depth": 1}, {"id": "ht9sj8k", "text": "Brokers always have to make their money somewhere. They do that by finding a home for hard to place loans. If you are an A paper borrower with little issues you can always do better by just calling a few lenders yourself. If you don\u2019t want to do that legwork then sure have a broker make a couple thousand for their efforts.", "replies": [], "depth": 1}, {"id": "ht9w7yz", "text": "Do you know how to negotiate loan terms?", "replies": [], "depth": 1}, {"id": "hta17qv", "text": "I\u2019m a broker. I don\u2019t ever worry about a client doing what you\u2019re suggesting because I know my grasp of the market is better than theirs. If they don\u2019t see the value in what I deliver then I will just work with other clients instead - and will probably charge that client more if they do end up coming back again. I reward loyalty for my clients\u2026. Half price on every deal after the first. \n\nBut the comprehensive advice and service I provide? Worth far more than the fee and I know it. If a client wants to do it themselves they can feel free to do so", "replies": [{"id": "htbgcbo", "text": "Not a mortgage broker but use one for nearly all of our deals and I can attest to this. Our trusted broker has been able to shaved 8 bps of a Freddie Small Balance Loan 7 days out from closing without us even asking. Another deal he was able to get a small local bank to roll closing costs into the loan and add 12 months interest only when they normally wouldn't do that. Brokers that do 90+ deals a year can attract better terms than a one off investor/syndicator doing a few deals a year. I won't lie sometimes when I sign the fee agreement I question the amount for a moment but the combination of saving me money, saving me time, and most likely increasing the probability of a smooth transaction make it worth.", "replies": [{"id": "htcwnrj", "text": "You\u2019re the right type of client! Haha", "replies": [], "depth": 3}], "depth": 2}, {"id": "htc1tew", "text": "I used to do mortgage brokerage. My team did 100+ deals in a year vs a client who might do 10 and usually less. We literally talked to lenders every day all day so had up to the minute info about who is offering what at what rate for what product. That was invaluable insight into the market.", "replies": [{"id": "htcwkpq", "text": "Exactly this. For the right clients, they will see the value. Our team is in roughly the same transaction range for commercial transactions as you were, and that\u2019s exactly it - its the insight that we provide that saves someone hours upon hours of going to market themselves to every lender", "replies": [{"id": "htd4t4h", "text": "Yep exactly. For a nominal fee paid by your investors I could arrange this critical part of the transaction and save you potentially millions as well as a to. Of bandwidth that you could better spend doing what you best, finding deals. Sure you could do it yourself but I have 200+ lender relationships and know how to talk to them.  Also most of the deals I would say 95% of the deals I would do would be hairy deals that you couldnt get done on your own. And even if you did have an existing lending relationship I could usually force them to improve on their terms by marketing your deal.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "htx2wfk", "text": "How long did it take to create your client roster? Do they repeated use you? And do you work for a firm or have your own shop? Thanks", "replies": [], "depth": 2}], "depth": 1}, {"id": "hta8u8s", "text": "Differ banks and lenders in general have different appetites for any given type of asset at any time. A mortgage broker likely has better knowledge of the landscape than you in this area. You likely will not always get the best terms sticking with one lender. I\u2019m not saying you need to work with a broker. Many CRE shops have internal capital teams that serve this purpose.", "replies": [], "depth": 1}, {"id": "htbj5f3", "text": "I\u2019m a direct lender in Los Angeles for a lot of multi family products but lots of times I want loan products for my borrowers that is brokered out of house cause I can\u2019t offer it. \n\nMy recommendation is to get in contact with a loan officer at a direct lender who can also act as a broker with good connections if the loan you want they don\u2019t do in-house. This way you will never pay the broker fee if the loan is in house, but you can use the same person that you trust for all other loans out of house and pay a fee then. But, you won\u2019t have to pay a fee every time because he is direct for some things.", "replies": [], "depth": 1}, {"id": "htbnarg", "text": "Just to add a little more of what everyone is saying- we work at knowing what bank/investor has what appetite. If a gas station deal comes up in louisiana, its good to know that bank xyz in pennsylvania will do it. That way we present a few solid options up front and go from there. If youre interested in the brain damage from many loan applications, great. Dont talk to a broker to get all the answers and THEN find yourself a lender. Of course, there are shitty brokers too so cut your losses if you get the doofus vibe from whoever you contact", "replies": [], "depth": 1}]