To succeed as a commercial mortgage broker, it’s important to know what your lenders expect from you each time you submit a loan scenario. Lenders will all have their own requirements, and it’s best to discuss this with them ahead of time so as to avoid any confusion. Here’s what you should focus on when you’re looking to close more commercial mortgages:
Choose the right lender for each scenario.
If you’re looking to close loans for non-bankable commercial property owners, you need to find a lender within that niche. Be sure to thoroughly research potential lenders and make sure that their loan products are something you’ll want to offer your clients. It’s important that this lender is a great fit for you and your borrowers and vice versa.
Do your homework on each deal.
Providing your lender with as much information about the deal as possible is a great way to start the lending process. Make sure you understand how much your client is looking to borrower, why they want the money and what type of property they own. It’s also important to talk to your borrower about their business and any past financial issues they may have encountered. All of this information will make the lending decision much easier and will save you and your clients’ time.
Provide all of the relevant documents.
In order to get started evaluating a request for financing, your small-balance commercial lender will need some basic documents. Generally, an executive summary of the deal, an application and a recent credit report are a good start. It’s also important to send the lender any relevant financial information so that they can evaluate your borrower’s situation more quickly and accurately. If you’re not sure what they need, ask.
Understanding your lenders and their requirements is crucial if you want to thrive as a commercial mortgage broker. Choosing the right lenders to work with, knowing the ins and outs of each deal and sending all of the relevant information to your lender are habits that will allow you to expand your business, as well as lead to more closed loans and additional income.