For brokers new to the small-balance commercial mortgage niche, one of the most crucial pieces of your success will be finding the right lender. In order to determine if a lender is right for you, it’s important to get to know them and ask them for as much information about their process as possible.
Here are some questions to get you started:
What are your minimum and maximum loan amounts?
Prior to submitting a commercial mortgage request to a lender, it’s important to ask how much – or how little – they’re willing to lend to borrowers.
How long has your company been in business?
It’s important to understand how long a lender has closing small-balance commercial mortgages. An experienced lender is generally better suited to providing borrowers with the right loan and the best experience.
What kind of rates can my borrowers expect?
If you’re working with non-bankable borrowers, the rates are going to be higher. Talk to the lender about their rate range so that you can relay the information to your borrower and explain why they can expect higher rates.
How flexible are your terms?
When working with non-bankable borrowers, it’s important for brokers to seek out lenders who will take the time to understand a borrower’s situation. Make sure you discuss the programs and terms a lender offers before submitting a deal.
Can you close loans quickly?
For many borrowers seeking non-traditional financing, it’s because time is of the essence. Ask the lender how long it takes on average for them to close a commercial mortgage, and make sure that their speed doesn’t come at the expense of thoroughness.
In order achieve your potential as a commercial mortgage broker, it’s important to understand what your lender can offer borrowers and how they operate throughout the lending process. This will allow you to choose lenders who are a great fit for you and your borrowers, leading to more closed loans and additional income.