It’s not unusual for residential brokers to come across the occasional commercial mortgage request, and if you’re looking to earn more, these deals are a great opportunity. Working with borrowers seeking commercial financing is a simple way to increase your income, and it doesn’t take much to submit these scenarios to a lender.
Here’s what you need to get your borrower a commercial mortgage for a commercial building:
Complete a 1003 or a commercial mortgage application.
The first thing you should do is sit down with your borrower or get them on the phone and fill out a 1003 or commercial mortgage application. Be thorough as you fill out these forms as your lender will need the details to fully evaluate your borrower’s commercial mortgage request. The more information you provide, the sooner you and your borrower will get an answers about whether the deal is approved to move forward.
Include a recent credit report.
When submitting a commercial mortgage request, it’s important to send your lender your borrower’s credit report. Make sure the report is as recent as possible and that it includes scores and tradelines. Your borrower will need all of this information to understand your borrower’s credit history and to properly underwrite the mortgage.
Write up a summary of the deal.
Give your lender an overview of the deal with a written summary. Include information about the commercial building, such as where it’s located and its use, your borrower’s financial history and how they’re planning to use the funds from the deal. When your lender has a clear picture of your borrower’s goals, it’s much easier for them to make a decision.
Ask your borrower for recent photos of the property.
They say a picture is worth a thousand words, and most mortgage underwriters would agree. When you submit the deal, include photos of the property, preferably exterior and interior, to give your lender a good idea of the commercial building being pledged as collateral.
Getting borrowers mortgages for commercial buildings is often a fast and easy way for residential brokers to earn additional income. Submitting the right documents makes the process that much simpler. While the above documents are generally required by most lenders to evaluate a commercial mortgage request, you should discuss additional requirements with a lender before you submit the deal.