Closing small-balance commercial mortgages is a great way for brokers to expand their product line and earn additional income. However, it’s very important that you choose a good commercial lender to work with in order to succeed.
Here’s what you should look for when choosing a lender:
Brokers working to close nonconforming mortgages should choose a commercial lender with plenty of industry experience. These are the lenders that have been in business for years, and they understand the unique needs of non-bankable borrowers.
While many brokers focus on closing commercial mortgages for borrowers in their area, you might come across borrowers throughout the country who can benefit from the nonconforming products you offer. Working with a commercial mortgage lender that offers financing nationwide means you can close more loans and earn additional income.
Brokers working with non-bankable commercial borrowers should seek out lenders who are willing to listen to the borrowers’ stories and take the time to understand their needs. Choosing a lender who takes a common-sense approach to underwriting is the best way to insure your borrowers get the commercial mortgages they need.
Protection for brokers:
It’s important that brokers are able to make a living closing small-balance commercial mortgages. That’s why you should discuss commissions with each lender you’re thinking about working with. For example, at APEX Mortgage, we allow our brokers to charge up to five points on each deal, and two of those points can be YSP.
Choosing an experienced, nationwide commercial lender like APEX yields many benefits for brokers. When you work with a commercial lender who takes a common-sense approach to underwriting and is committed to protecting each broker’s fee, you’re making a choice that benefits both yourself and your borrowers.