Every broker working to close small-balance commercial mortgages has dealt with loans that present a challenge. Deals involving non-bankable small business owners often present unique sets of obstacles such as less-than-stellar credit, delinquent taxes or issues regarding income verification. Certainly knowing when to turn down a commercial mortgage request is important, but brokers also need to know when to fight for a deal and how to do so successfully. Here are some steps you can take to close more challenging commercial mortgages:
Recognize the issue(s).
As mentioned above, there are a number of reasons it can sometimes be difficult to get commercial borrowers the financing they need. What you need to do is identify the challenges your borrower is facing and why they’re facing them. Simply understand the issues that have prevented your borrower from obtaining a commercial mortgage is a step in the right direction.
Find a lender willing to work with your borrower.
Once you understand the challenges facing your borrower, you can begin to work on ways to help your borrower overcome them. For borrowers unable to obtain a bank loan, a solution could be a non-conforming commercial mortgage lender. It’s important that you seek out a lender who has experience in working with non-bankable borrowers. These lenders are more likely to listen to your borrower’s story and to work with them to find a financing solution.
Cooperate with the lender.
If you’re trying to close a challenging small-balance commercial mortgage, it’s important for you to work closely with your lender throughout the process. Make sure to answer any questions your lender has and help them to obtain any information necessary for a smooth closing.
To close challenging small-balance commercial mortgages, brokers must be willing to understand and work through the obstacles their borrower is facing and to find a lender that will do so as well. If you can identify your borrower’s problems and partner with a lender to help solve those problems, there’s no need to turn a deal down. There may be some extra effort required, but your commitment will pay off in the end.