Small-balance commercial mortgages for non-bankable borrowers come with their own set of unique obstacles. As a commercial mortgage broker, it’s your job to anticipate these challenges and explain the benefits of going ahead with a non-conforming commercial mortgage.
Here’s what you should expect and how you should handle these obstacles:
Be upfront with your borrower.
When you’re working with a non-bankable borrower, it’s crucial to make sure they understand the type of commercial mortgage they’ll be able to qualify for. If they aren’t going to be able to obtain bank rates, tell them so, and explain that you’ll find them the best possible deal that fits their financial situation.
Provide the lender with all of the necessary information.
Do you want to avoid delays in the commercial mortgage process? Don’t waste time going back and forth. Talk to your lender about the documents that they’ll need to review and underwrite each deal, and then make sure you send that information as soon as possible.
Emphasize the positives of the deal.
It’s not unusual for non-bankable borrowers to get hung up on a higher rate than they were expecting or a more costly appraisal than they were anticipating. When this happens, focus your borrower’s attention on positive aspects of the deal. Is their monthly payment decreasing? Is the rate fixed and fully-amortizing? Will the loan close faster than expected? If so, these are all good things to point out to your borrower.
Keep the borrower focused on their goals.
At the end of the day, your borrower needs this money in order to accomplish some sort of goal. Whether that’s purchasing a commercial property, making improvements to an existing property or simply paying off debt, continue to remind them of what they want to accomplish.
Most small-balance commercial mortgage challenges can be solved fairly easily. As long as you’re upfront with your borrower about what they can expect and are prepared to emphasize the positives of the deal and keep them focused on what they’d like to achieve, selling the deal should be simple. Likewise, you can avoid issues with the lender by providing them will all of the relevant information as quickly as possible. Keep the above tips in mind, and you’ll be able to close more loans and earn more money.