A broker’s ability to close loans and earn income depends largely on their relationships with commercial mortgage lenders. For brokers interested in the small-balance niche, it’s crucial to note that these partnerships are very important in this smaller and often underserved market.
Here are some tips on building strong connections with small-balance commercial mortgage lenders to maximize your success:
Learn about their loan products.
In order to determine if a lender is right for you and your borrowers, you need to get to know their loan programs. Take the time to read through any available information on their website, and then call them to discuss. Lenders will appreciate the due diligence and your effort to learn.
Ask (and answer) questions.
When you contact a lender, it’s important to ask them about their programs, the types of property on which they lend, the borrowers they service, and any questions you have regarding broker compensation. Likewise, you need to be prepared to answer lenders’ questions about your business. This will allow both parties to determine if working together makes sense.
Know their submission requirements.
One of the questions you should ask is what documentation the lender needs to evaluate a commercial mortgage request? Most small-balance commercial mortgage lenders will require a completed 1003 or application, a credit reports with scores and trade lines, and a summary of the deal, but each lender will have unique requirements specific to their process. Getting this information before you submit a deal will speed things up.
Be willing to cooperate.
At the end of the day, brokers and small-balance commercial mortgage lenders have the same goal: to close deals. So, it’s important to work with your lender closely in order to keep mortgage requests moving through your pipelines.
At the end of the day, building a strong partnership with a small-balance commercial mortgage lender comes down to communication. Do your best to learn about a lender’s products, and then be ready to ask and answer questions. Take the time to learn about what they need from you to look at a loan scenario and always be willing to cooperate to close the deal. Doing so will allow you to close commercial deals and earn more.