As a commercial mortgage broker, you need to earn the trust of both borrowers and lenders in order to reach your full potential. Both parties are relying on your skills to make the commercial lending process simpler.
Follow the tips below, and you’ll impress both borrowers and lenders, and gain the ability to close deals faster than a speeding bullet. Here’s how to be a commercial mortgage superhero:
For your Borrowers
- Educate and explain. Borrowers seeking commercial mortgages are likely working with you because, as a broker, you have a lot of industry knowledge and experience. Make sure that you demonstrate your skills by educating your borrowers about aspects of the lending process and explain anything that they might not understand.
- Prepare them for what to expect. Making sure your borrowers know what they’ll likely get is very important, especially when it comes to non-bankable commercial borrowers. If your clients are unlikely to qualify for bank terms and rates, make sure you explain why and detail why a small-balance commercial mortgage is their best financing option.
- Keep them focused. Sometimes, obtaining a commercial mortgage can be a challenge. No matter what issues you encounter through the lending process, it’s crucial to keep your borrower focused on their goals. Remind them periodically how this commercial mortgage will help them and their business.
For your Lenders
- Gain an understanding of their programs. Before you submit any deals, you should take some time to learn about a lender’s programs. Have a discussion with the lender about the kinds of deals they do and the types of borrowers they generally work with, and ask any questions you might have.
- Submit all of the documents they’ll need. A simple way to impress a commercial mortgage lender is to send them a complete application for review. To start, you’ll definitely need a completed 1003 or commercial mortgage application, a recent credit report with scores and tradelines, a summary of the deal and, ideally, photos of the property. Make sure you discuss any other additional documentation your lender might need to review the scenario.
- Cooperate throughout the lending process. If you’re working with a small-balance commercial mortgage lender who specializes in non-bankable deals, there will likely be a few issues that crop up. Make sure you work with the lender to resolve these issues and you’ll cement yourself as a great broker partner in their eyes.
Closing a commercial mortgage is a team effort, and the broker is a crucial part of the process. By making sure to address the needs of your borrowers and lenders, you’ll earn the reputation of a commercial mortgage superhero and earn more money.