There are many small business owners looking to refinance their commercial property at any given moment, and as a broker, it’s your job to help them secure that mortgage. In order to get them the right commercial mortgage for their needs and place them with the correct lender, there’s some information you’ll need. Here’s what you’ve got to know:
Assess their financial situation.
Before you do anything else, you should speak to your borrower and work to understand their current financial situation. You’ll need to know about any past credit issues they’ve encountered, any debts for which they’re responsible and any income verification issues they might be facing. This will allow you to better understand your borrower and help you to select the right lender. If your borrower’s financial situation keeps them from qualifying for a bank loan, you’ll need to start looking for alternative commercial mortgage lenders.
Collect the documents necessary for submission.
This will depend on the type of lender to whom you’re sending the commercial mortgage request, but vast majority of lenders will require at least a completed 1003 or commercial mortgage application, a credit report with scores and tradelines, and a summary of the deal to review the scenario. Make sure you have all the required documents before submitting the mortgage request to a lender. Read more here about getting your borrower ready.
Learn about why they need the money.
There are many reasons a borrower is looking to refinance their commercial property. Whether it’s consolidating their debt into a simple monthly payment, getting cash out for property improvements or working capital or paying off a ballooning loan, you’ll need to know why they need the money and explain that to the lender.
As a commercial mortgage broker, it’s crucial that you get to know your borrower and their needs in order to get them the right financing solution. Make sure that you develop and understanding of their financial situation, have all the required documentation for submission and learn about why they’re looking to refinance their property. Having this information on hand from the beginning will help your lender and will allow you to close more loans quickly.