Communication is a very important factor throughout the process of underwriting and closing small-balance commercial mortgages, particularly when you’re working with non-bankable borrowers. Brokers need to encourage the flow of communication in order to avoid obstacles. Here’s what you need to do in order to communicate successfully and obtain a small-balance commercial mortgage for your borrower:
Talk to your lender.
Before submitting any deals, get to know your lenders. Learn about their niche and discuss what they’ll need in a loan submission. Having this discussion early on in your relationship will let the lender know you’re taking the partnership and your position as a commercial mortgage broker seriously.
Respond to questions and requests in a timely manner.
Whether the question or request comes from your borrower or your lender, responding to it promptly and thoroughly is very important. This shows both your borrower and your lender that you are committed to the success of this loan and that you’re a trustworthy commercial mortgage broker.
Address the concerns of your borrower.
It’s not unusual for your borrower to have some worries through the lending process, particularly if they could not qualify for traditional financing. As their commercial mortgage broker, it’s crucial that you address these concerns and help them to understand the mortgage for which they do qualify.
Generally, when there are issues in underwriting and processing a commercial mortgage for a non-bankable borrower, it’s because there were details left out of the initial submission. Nontraditional commercial lenders are willing to work with borrowers who have had issues in the past, but they need to know about those issues upfront. Encourage your borrowers to very honest with both you and the lender.
Without open and honest communication throughout the commercial lending process, issues are bound to arise. However, brokers who prioritize effective communication with both borrowers and commercial mortgage lenders are more likely to experience a smooth underwriting process, leading to more closed loans.