Brokers looking to close commercial mortgages need to choose dependable lenders in order to reach their full earning potential. In order to do that, you need to know what to look for in a lender.
Here are some questions you should always ask before doing business with a commercial mortgage lender:
How long have you been in business?
One of the most important things you need to know about any lender you’re thinking about working with is how much experience they have in the commercial mortgage industry. If a lender’s been a business for a long time, it means they’re dependable and that they understand the nuances of commercial mortgages.
Are you a direct lender?
Another crucial piece of information every broker should know is whether or not the company you’re considering is a direct lender. Make sure to do your due diligence on this front if working with a direct lender is important to you.
What kind of turn time can I expect?
Every commercial deal will be different in terms of how fast it can close depending on its complexity, but you should always ask a lender about their average turn time. You’ll have borrowers who can afford to wait on funding, but others will need a mortgage fast. Make sure you have at least one lender with a track record of closing loans quickly.
Do you handle the processing?
Before you submit a deal, make sure to understand the lender’s process, including who is responsible for things like ordering the appraisal, handling title work and scheduling the closing. Working with a lender who handles the processing of the loans will free you up to seek new business and allow you to close more deals.
How much can I make?
Last, but certainly not least, ask the lender about broker fee protection and how much you’re able to earn on each deal. You’ll want to work with lenders who understand the value you bring to the commercial lending process and allow you to charge fees which reflect that.
Reliable commercial mortgage lenders are a major part of any broker’s success, so choosing to work with the best is crucial. Asking these questions will allow you to determine which lenders will allow you to close more loans and earn more income.