Obtaining a small-balance commercial mortgage for an office building can be difficult, but commercial mortgage brokers should know that there are commercial lenders out there who specialize in small-balance loans and can finance these properties. It’s important to note that there is some basic information you should obtain before submitting an office loan scenario to your lender. Here’s what you need to know:
Know the collateral.
As a commercial mortgage broker, you need to gather as much information as possible about the office building that your borrower is looking to finance. You should know where the property is located, the size of the property and what type of business or businesses occupy the space. All of this information will help your lender to evaluate your borrower’s situation.
Understand your borrower’s credit history.
Your borrower’s credit is a crucial part of a commercial mortgage lender’s decision to finance their mortgage request. Provide your lender with an up-to-date report and be sure that you and your borrower can discuss the report in detail should your lender have any questions.
Be prepared to discuss your borrower’s past financial obligations.
A commercial mortgage lender will need to know how your borrower handled past business loans and mortgages. If they’ve had some financial issues in the past, be ready to discuss it with your lender.
Know your borrower’s ability to repay the loan.
It’s very important to any commercial mortgage lender that your borrower is able to make their payment each month. Be sure to gather relevant financial information about your borrower’s office building to show your lender that your borrower has the means to make their payments.
Be prepared to discuss the use of funds.
Whether your borrower plans to purchase an office building to start a news business or refinance to improve an existing structure, your lender will be interested in understand the use of proceeds. Include your borrower’s plans for the money in an executive summary and be prepared to discuss it further with the lender.
Getting your borrower a small-balance commercial mortgage for an office building doesn’t have to be difficult, as long as you choose the right kind of lender and provide them with all of the information they’ll need to make a decision. Make sure you’re very familiar with your borrower’s property and credit and that you understand how they handled their past financial obligations. It’s also important to include information about how your borrower plans to use the money and to prove they can repay the loan. Providing your lender with all of this information will make it much simpler for your borrower to get the office building mortgage they need.