Residential mortgage applications decreased by 7.1% from the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending October 12, 2018.
The Market Composite Index, which measures mortgage loan application volume, decreased 7.1% on a seasonally adjusted basis from one week prior. On an unadjusted basis, the Index decreased 7% compared with the previous week. Additionally, the Refinance Index saw a drop of 9% from the previous week, and the Purchase Index decreased 6% from a week earlier.
With these drops in an already competitive field, now is a great time for brokers to expand their offerings and begin working with borrowers seeking small-balance commercial mortgages. It’s simple to get started.
You’ve already got the necessary skills.
While there are some differences between closing residential and small-balance commercial mortgages, you already have most of the knowledge and experience you need to work with borrowers seeking commercial financing, particularly within the small-balance niche. With an experienced lender’s assistance, you’ll be able to explain and sell these mortgages with ease.
The application process is simple.
If you choose to close small-balance commercial mortgages for non-bankable borrowers, submitting an application is easy. Lenders generally require far less documentation to review a scenario than would be required for a residential mortgage. Every lender is different, but you’ll likely only need to submit a completed 1003, a credit report with scores and tradelines, and a detailed summary of the deal to get the process started.
If you choose the right lender, it’s not a lot of extra work.
When you decide to begin working in the small-balance commercial mortgage niche, it’s important to select a great lending partner. Choosing an experienced lender with a track record of closing loans and supporting brokers will allow you to do your best work and give you the time to continue to seek out both commercial and residential leads.
You can earn more closings these deals.
The small-balance commercial mortgage niche is less heavily regulated than the residential industry, so you can charge more on these deals when it’s appropriate. For example, APEX allows brokers to charge up to 5 points on most deals, and you can often earn an additional 2 YSP.
Closing small-balance commercial mortgages is a great way to supplement your income as the residential field begins to grow even more competitive. You’ve already got the know-how to work on these deals, and with the right lender and the simple application and closing process, it’s easy for you to earn more.