Commercial mortgages can be very unique and complex, so it’s important for brokers to take care when submitting a commercial loan scenario. As a commercial broker, you need to be thorough when preparing the loan and to cooperate fully with your lender once it’s been submitted. If it seems that you’ve had more than your fair share of turndowns, it’s time to take a look at your loan submissions to see if you’ve made a few missteps along the way. When working on a commercial mortgage, it’s crucial to avoid the following three mistakes:
A sloppy loan submission summary:
As the market has improved, commercial mortgage lenders have less time and inclination to work on loan scenarios with key information missing. It’s very important for you to craft a loan submission summary that clearly explains what your borrower is looking for and conveys important information that your lender will need to make a decision. This will let your lender know that you take the business seriously and that you value professionalism and attention to detail.
Unrealistic broker fees:
Certainly, every commercial mortgage broker needs to make a living, but charging very high fees on the mortgages you submit is not a smart move. Certainly, some loan scenarios merit higher broker fees, but it’s important to determine the cost of your services fairly. Not only are very high brokers fees a deterrent to potential customers, but there’s also a good chance that many commercial lenders won’t want to accommodate you.
Never asking questions:
If one of your loan submissions is turned down or if it’s simply more difficult than you had expected, it’s important to ask why. Most lenders will be happy to tell you about the difficulties the submission presented in the hopes that you’ll know how to proceed the next time you submit a commercial mortgage request.
When you’re submitting a commercial mortgage request, you need to inspire confidence in your lender. Be sure that your loan submission summary is clear and professionally presented. Decide on your service fee fairly so that both your borrowers and your lenders see you as trustworthy and reliable. Also, remember to ask questions when the going gets tough. Avoiding the above mistakes will allow you to present yourself as a competent broker and will make the loan submission process much easier.