If you’re a residential mortgage broker who has decided to begin brokering small-balance commercial mortgages for non-bankable borrowers, one of the most important things to focus on is what you’ll need to submit an application. Different lenders will have different requirements, so it’s important to talk to your lender before you submit your first deal. However, there are basic requirements for each loan submission.

Here’s what you’ll definitely need to submit:

A completed 1003:

A small-balance commercial lender like APEX will require a completed application, and generally a 1003 will be sufficient. Before submitting, make sure that you and your borrower have filled out the form completely, and if there is more than one borrower, make sure you have a 1003 for each of them. Submitting incomplete documents simply slows the underwriting process, meaning it will take longer for the deal to close.

A credit report:

Another crucial piece of information for your lender will be a credit report. You should submit a tri-merge credit report whenever possible, but most lenders will accept reports from websites geared toward consumers as long as they contain scores and tradelines. Again, if there are multiple borrowers, be sure to submit a credit report for each of them.

A summary of the deal detailing use of proceeds:

One of the most important documents your small-balance commercial lender will need is a loan submission summary. This should explain why the borrower is non-bankable, how this situation occurred, what the borrower has done so far to resolve any financial problems and how the loan will benefit the borrower. It’s also important to include how your borrower plans to use the money in detail.

Brokering small-balance commercial mortgages for non-bankable borrowers is a simple way for residential brokers to expand their product offerings, and an important part of your success will be understanding what your lenders need to evaluate these loans. Submitting the above documents, as well as any other information a lender requires, is a great way to show your lenders that you are serious about the business and that’s you’re a credible broker. Taking these simple steps will allow you to close more small-balance commercial mortgages faster and earn more money more quickly.

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