Understanding the Non-Conforming Commercial Mortgage Process

Brokers seeking to expand their product offerings and increase their income need to look no further than the occasional small-balance commercial mortgage deals that cross their desks. These loans are a quick and easy way to earn more as long as you understand the process and choose the correct lender.

Here’s what every broker considering closing small-balance commercial mortgages should know:

Application:

When submitting a request for commercial financing to a lender, you should always ask what is required and make sure each document is completed. For a small-balance commercial mortgage lender like APEX, brokers are required to submit a completed 1003, a tri-merge credit report, a summary of the deal and photos of the property. If you’re working with non-bankable borrowers, keep in mind that each deal is unique and your borrower’s situation will affect how much additional information a lender needs before proceeding with the loan.

Underwriting:

Once the deal has been approved, it moves into the underwriting phase, where things like the loan-to-value ratio and interest rate will be determined. Throughout this stage of the process, an underwriter will contact you and your borrower for additional information about the property, the purpose of the loan and any additional documentation needed to proceed.

Processing:

When working with a lender like APEX, brokers do not have to worry about the processing stage of the loan unless major issues arise. The APEX team takes care of ordering title work and resolving any issues, ordering and analyzing the appraisal and scheduling the closing.

Closing:

Generally, the trick to a smooth closing is providing as much information about the loan request and your borrower upfront as possible and cooperating fully with your lender. Once the three stages of the commercial mortgage process have been completed, all APEX’s brokers need to do is sit back and wait for their commission check.

Passing on the small-balance commercial deals that come across your desk is essentially throwing away money. For brokers looking to earn more, it’s as simple as learning the commercial mortgage process and submitting deal’s that fit your lender’s program guidelines.