To close small-balance commercial mortgages, brokers need to gather all relevant information that a lender needs. The best way to do this is to take some time and schedule a call or face-to-face meeting with the borrower for a discussion.
Simply speaking with the borrower to learn more about their situation and telling them about your business and services is a great way to get started.
What you need to know:
Brokers should review their borrower’s tri-merge credit report and then discuss it with them. Ask your borrower about their scores and any financial bumps that may have impacted them.
Ask your borrower some basic questions about the property they’re planning to pledge as collateral, such as location, size and use. Request exterior and interior photos.
Capacity to pay:
Collect all relevant financial information and discuss your borrower’s ability to make monthly payments to the lender.
Ask your borrower how they’ve managed past financial obligations. For example, have they experienced obstacles? How did they handle those challenges? A lender will want to know.
What they need to know:
Let your borrower know how long you’ve been in business as a commercial mortgage broker and how your services can help them to achieve their financial goals.
Explain your process, as well as your lenders’ processes so that your borrowers know what to expect.
Make clear the fees your borrower can expect to pay to you, the lender and any third-party service providers throughout the lending process.
Open and consistent communication with your borrower is a great first step toward helping them to obtain a small-balance commercial mortgage. Be sure to address the questions above early on so that you can help them to understand what you can offer, as well as help them find the best commercial mortgage for their situation.