Many borrowers rely on commercial mortgage brokers for a simple and smooth transaction, so it’s important to make sure you’re handling things correctly. Small-balance commercial mortgages don’t have to be difficult; you and your lender simply need to be on the same page.
Here are some tips that will make closing commercial mortgages easy for you, your borrower and your lender:
Learn everything you can about your borrower’s request.
Before you even send a lender your borrower’s commercial mortgage scenario, you need to have a discussion with them. In order for the lending process to go smoothly, you need to get some basic questions out of the way, like how much money your borrower is requesting and how they plan to use it. Additionally, take the time to get a sense of their financial situation and any past obstacles they’ve encountered.
Submit all of the necessary documents.
The best way to make sure your borrower’s request closes quickly is to get your lender everything they need as quickly as possible. Talk to your lender about the documents they need to review a request and send them all with the initial submission.
Answer your lender’s questions in a timely manner.
Once you’ve sent in the deal, it’s likely that your lender will have additional questions about your borrower and their request. Make sure that your borrower understands that they quicker they get you answers, the quicker you can contact the lender. Speed and cooperation will help the loan close more quickly.
Don’t order the appraisal or handle title work.
At least, ask your lender who is responsible for ordering the appraisal and handling title work before doing so. Many lenders have appraisers and title companies that they trust and would prefer to handle this part of the loan process.
A simple commercial mortgage process comes down to making sure you know your borrower and their situation, submitting all the proper paperwork, answering your lender’s questions as quickly as possible and establishing who is responsible for what. As long as you have a conversation with your lender before submitting deals and stick to the directions they give you, closing small-balance commercial mortgages is an easy way to earn more.