As a commercial mortgage broker, it’s important for you to keep the needs of your clients in mind when you choose small-balance lenders with whom you’d like to work. Choosing the right lender can mean the difference between a turndown and closed loan and a great commission.
So, how do you choose the best small-balance commercial mortgage lender for you and your borrower? Here are some questions you can ask to help determine the answer:
How long have you been in business?
Before you begin working with a small-balance commercial mortgage lender, it’s important to get a sense of their experience in the industry. An experienced lender will be better suited to helping you close more deals and getting your clients the commercial financing they require.
How simple is your application process?
If you’re working with alternative commercial lenders, you shouldn’t be bogged down in paperwork. The right lender will make it easy for you to submit your borrowers’ applications and will have a process in place to streamline approvals and turndowns so that you get a quick yes or no.
How flexible are your terms?
The right small-balance commercial mortgage lender will be concerned with each borrower’s financing needs and will offer flexible terms and a variety of programs to meet those needs. Make sure to seek out lenders who are willing to listen to your borrowers’ stories and will work with you to provide them with the best commercial mortgage solution.
How competitive are your rates?
A small-balance commercial mortgage lender’s rates will determine how cost effective it is for your borrower to obtain the financing they need. Be sure to look for lenders who will be a good fit for your clients. Keep in mind that if your borrower needs alternative financing, the rates will be higher, and you should prepare them for this.
How quickly do you close deals?
The sooner a mortgage closes, the sooner your borrower gets the financing they need and the sooner you get paid. Make sure that you choose a lender who will be thorough when it comes to underwriting and processing the deal, but can still close the mortgage in a timely manner.
What kind of service can my borrowers expect from you? It’s important to keep in mind that your borrowers will eventually deal directly with the lenders with whom you choose to work. This is especially true if you work with portfolio lenders who do not sell off the commercial mortgages they close. Make sure to choose lenders who are committed to providing great customer service to their borrowers.
Selecting the right small-balance commercial mortgage lender is crucial to meeting the needs of your borrowers, as well as to your overall success as a broker. Make sure that you discuss the questions above with potential lenders before you begin submitting deals.