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Closing Time-Sensitive Commercial Mortgages

Securing a small-balance commercial mortgage for a borrower is often enough of a challenge without the added trouble of waiting around for a lender to determine whether or not they can finance the request. Time-sensitive deals require a lender who will handle your borrower’s request both quickly and thoroughly. If you’re a broker working with a borrower who needs a commercial mortgage fast, it’s important to choose a lender that can meet your borrower’s needs within the required timeframe.

Here are some questions you need to ask to determine if a lender is right for time-sensitive commercial mortgages:

What do you need to evaluate the scenario?

The first thing you need to determine is what documents a lender will require to look at your borrower’s commercial mortgage request. If you’re dealing with a bank or an SBA lender, you’re going to need to submit a lot of paperwork for them to evaluate the deal. These lenders are also subject to strict guidelines, so reviewing your borrower’s request will take more time than it would if you were to submit the deal to an alternative lender with a track record of quick closings.

Will I get a quick yes or no?

Banks, SBA lenders and even some private lenders who handle small-balance commercial mortgages could take days to review your borrower’s commercial mortgage request and either approve it or turn it down. If you’re working on a time-sensitive deal, you need to know quickly whether or not a lender can provide the funds your borrower needs. Those extra days a lender spends looking over a file can make or break your borrower, especially if the answer turns out to be no, so it’s important to seek out lenders who can get you an answer fast.

How quickly can you close the deal?

A small-balance commercial mortgage can close within a couple of weeks, but if can also take months depending on the lender. Before you submit your borrower’s request, talk to lenders. Ask them about how long it takes them on average to close a deal. Explain your borrower’s situation and ask them if they can handle closing it quickly. This will keep you from wasting yours and your borrower’s time if a lender takes a while to close deals.

If your borrower needs a commercial mortgage fast, it’s your job as their broker to determine if a lender can deliver. Make sure you know how much documentation is required for a lender to review the deal, whether or not you can expect a quick approval or turndown and the average turnaround time for closings before choosing a lender. In the case of a time-sensitive deal, a non-conforming, small-balance commercial mortgage lender is often going to be a better choice for your borrower than a traditional lender simply because they can get the deal done fast.

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