If you’re a residential mortgage broker, you’ve likely had a few commercial mortgage scenarios find their way onto your desk. Turning these deals down simply because they’re not residential means throwing away easy money. Closing commercial mortgages doesn’t take much extra effort because you’ve already got all the skills you’ve acquired as a residential broker. So, what do you need to do to start closing commercial loans?
Here’s how to begin as a commercial mortgage broker:
Develop partnerships with commercial mortgage lenders.
The first thing brokers looking to add commercial mortgages to their product offerings need to do is to establish business partnerships with commercial lenders. This is crucial because if you have nowhere to place the commercial leads that come your way, you won’t be able to close any loans. Get to know your lenders, their products and their guidelines so that you know which lender will be the best fit for a given borrower.
Build and maintain your referral network.
Another important piece of a commercial broker’s success is their referral network. Make sure to let your current sources know that you can help their clients who need commercial financing, and take the time to seek out new sources as well. Focus on bankers, accountants, realtors and attorneys. Keep in touch with your network and make sure to focus on how your services will benefit them and their customers.
Learn how to submit a deal.
Most lenders require some basic documents to evaluate a commercial mortgage request, but it’s important to discuss the submission process with your lenders. You’ll typically need to submit a completed 1003 or commercial mortgage application, a credit report and a summary of the deal, but what lenders will require will likely vary. Take the time to learn about any additional documentation your lenders need to review the scenario.
Adding commercial mortgages to your product offerings is a simple way to increase your income. Developing relationships with commercial lenders, strengthening your referral network and learning what lenders need to review a deal are all you need to do to begin closing these loans. By relying on the skills and expertise you’ve already developed as a residential broker and putting in just a little bit of extra effort, you can start earning more.