Closing small-balance commercial mortgages is a great way for brokers to earn more as long as they understand how to go about it. As long as you take the time to understand each deal and collect the information your lenders will need, these loans are a simple way to increase business.
Here are some simple ways to become a small-balance commercial mortgage champion:
Understand your borrower and their situation.
In order to place a borrower seeking a small-balance commercial mortgage with the right lender, you need to understand their situation and the type of loan for which they can qualify. If they’re non-bankable, submitting the deal to a bank or other traditional lenders will likely be a waste of your borrower’s time and money. Take the time to get to know the borrower so that you can choose the right lender for them.
Submit all required documents.
Small-balance commercial borrowers count on mortgage brokers to guide them through the lending process, so you need to speak with lenders and learn what they’ll need to review a scenario. Once you know what is required, make sure to collect all relevant documentation from your borrower. Most lenders will need at least a completed 1003 or application, a credit report with scores and tradelines, and a detailed summary of the deal to look at a commercial mortgage request, but always discuss these requirements with them beforehand.
Cooperate with your lender.
Once the deal has been submitted and approved, your lender will most likely have some additional questions and need more information to get the mortgage closed. Make sure to answer their questions promptly and to send them any necessary documentation in a timely manner to assure a fast and smooth closing.
Brokers can easily become a champion in the eyes of a small-balance commercial mortgage lender. All you need to do is develop an understanding of each borrower’s request and situation, submit everything your lender needs to get the deal done, and cooperate with them throughout the process. Following the above tips will help you to close more small-balance commercial mortgages and increase your income.