If you are in the mortgage brokering business for the long haul, you need to know the best outcomes for your borrowers. As a commercial mortgage broker, it’s in your best interest to consider what’s best for your borrowers when it comes to loan terms. Many commercial lenders offer what at first glance seems like a great deal, complete with a good rate and a quick turnaround time. However, there aren’t many small-balance commercial lenders who offer fully amortizing loans, so your borrower is likely to face a ballooning mortgage and the prospect of refinancing within a few years.
Many small-balance commercial lenders securitize their loans in order to continue to provide financing to new borrowers. This leaves borrowers at the mercy of the buyers, some of whom may not want to renew the borrowers’ loans when the balloon payment comes due. When the light bulb goes on with the realization of who got them into this predicament, do you want your reputation on the line? The slightly lower interest rate you sold them a few years earlier will not be worth all of the aggravation and costs the borrower is facing in searching for yet another refinance.
If your borrower is uncomfortable with the idea of a balloon loan or is currently facing a balloon payment, finding a small-balance commercial lender that offers fully-amortized loans is important. At APEX, we offer borrowers fixed and adjustable rates for 15 to 25 year terms. Your borrowers will not need to worry about re-qualifying or refinancing in several years; they’ll only need to make their monthly payments.
Here’s what we need to review your borrower’s scenario:
- A detailed loan summary
- A commercial loan application or a 1003
- A tri-merge credit report
Borrowers don’t want to deal with looming balloon payments. They simply want to get the commercial mortgage they need without worrying about refinancing right away. Let APEX help your meet your borrowers’ needs!