For brokers looking to close small-balance commercial mortgages, borrowers looking to finance investment properties are a solid segment of the market. Whether your borrower is looking to finance something as simple as a multifamily property or something a little more complex, like a shopping center, brokers need to know how to present these requests to lenders.
Here’s what you’ll need to submit a commercial mortgage for an investment property:
Provide the necessary documents.
When submitting a small-balance commercial mortgage scenario, it’s important to send your lender the necessary documents to get the process started. Every lender will have its own requirements, but it’s a good rule of thumb to always send a completed 1003 or commercial application, a recent tri-merge credit report, a summary of the deal, all financial documents that prove your borrower can make monthly payments, and photos of the property. Since it’s an investment property, it’s also a great idea to include a rent roll.
Include information about the property.
In addition to the documents your lender needs, you should also provide them with information about the property. Give them the location and property type, the size and approximate value of the building, and the type of business or businesses that occupy the space.
Tell your lender about the use of proceeds.
Whether your borrower is looking to purchase a new investment property or to refinance one they already own, your lender will need to know. Make sure you include the details about your borrower’s plans for the money in your summary of the deal.
In order to make sure that the lending process is as smooth and simple as possible for your commercial borrower, it’s important to make sure you understand what is needed to submit a financing request. Sending your lender the appropriate documents, the necessary information about the property and your borrower’s plans for the money will make closing a loan for an investment property fast and easy.