We’ve discussed the best sources for commercial mortgage leads, as well as effective ways to communicate with potential borrowers in the past. But what do you do when you start receiving these leads? How to you convert them into closings and commission checks? It might seem like a challenging task, especially if you’re working with a non-bankable borrower, but taking the steps below will help you to close commercial mortgages.
Before you do anything else, you need to ask the borrowers some basic questions. You should find out how much money they need and what their plans for the money are, as well as some basic information about the property (type, size, location, etc.) and their credit history. The more information you get from your borrowing before sending the scenario to a lender, the easier it will be to get the underwriting process started.
Submit the right paperwork.
The documentation needed for a mortgage request will vary from lender to lender, so it’s important to ask yours what they expect. If you’re working with a non-bankable borrower and a non-conforming lender, you’ll likely need to submit a completed 1003, a credit report with tradelines and scores, a summary of the deal, and current photos of the property if you have them. Make sure you ask your lender exactly what they’ll need to evaluate the deal and get that information to them.
Keep your borrower’s expectations in check.
One of the trickiest parts about getting a non-bankable borrower the commercial mortgage they need is to make sure they’re expectations align with the deal for which they’ll qualify. You need to make sure that the borrower understands what kind of rate and terms they can expect so that selling the deal isn’t an uphill battle.
To succeed as a commercial mortgage brokers, you need to be able to convert your leads to closed deals. Having all of the important information about your borrower and their situation ready, submitting all of the necessary documents and managing your borrower’s expectations will keep the process moving smoothly and allow for you to close loans fast and earn more income.