I am a real estate investor. I have an accepted offer on a 7-plex.
My two questions are:
1. Is it ethical to contact two mortgage brokers I know and ask both of them to work on my mortgage application at the same without telling them about the other broker? meaning apply for a mortgage with both of them? I just see such different financing conditions that I want to get a competitive mortgage and not be taken advantage of . the problem if I apply with only one of them first is if I wait till the first response, I may lose the deal as I have only 3 weeks to release the financing conditions. so is it OK to have 2 mortgage brokers from different companies work on the same deal for me at the same time? then if one of them wants a fee double than the other broker for example, then I will tell him no thanks. this type of building is a lot of work for the mortgage broker so I would feel bad saying no if he gives a positive response in the end just because another broker offers me better financing conditions. on the other hand, as mentioned I want the option to reject a broker who charges too much or arranges bad financing conditions! Also, will the brokers be able to tell/know somehow that I applied elsewhere in parallel?
2. A broker wants $ 6000 for arranging financing for a 7-plex that costs only 350,000! he said they charge the higher of $ 6000 and 1% of purchase price. so unfortunately in the case of 350000 i pay 6000 which is around 2% of purchase price! is this reasonable fee for a commercial property or is he charging too much?