Turning away borrowers looking for small-balance commercial mortgages means less business for your company. Mortgage brokers should seize the opportunity these borrowers present. Many residential borrowers see these loans as too much work, while commercial brokers who specialize in larger deals don’t see small-balance loans as profitable. However, these commercial mortgages don’t always require much extra effort and can increase your income. Here’s why you should add small-balance commercial mortgages to your offerings:
It’s an underserved market
While the residential and large-balance commercial mortgage markets are very competitive, there are many borrowers looking to obtain small-balance commercial mortgages who have trouble finding brokers. Brokers who embrace these borrowers and guide them through the lending process are going to benefit and earn more income.
While some small-balance commercial lenders require brokers to do a lot of the processing work, APEX Mortgage can handle all of that for the broker. If you choose the right lender, it can be as simple as submitting the basic documents for a loan scenario to be considered and aiding throughout the process if any issues should arise.
You’ll close more loans more quickly
Because small-balance commercial lenders face fewer restrictions than traditional lenders, it’s easier for these loans to close fast. Since the loans often close much faster, you’ll be able to close more of them, which means additional income for your business.
There are many benefits to offering small-balance commercial mortgage products. Many borrowers would benefit from a loan like this, and simply don’t know where to start. As a broker offering this type of product, you’ll be helping borrowers obtain the commercial mortgages they need to expand their business, pay off their debts or make improvements to their properties, all while earning additional income without much extra work. Read our previous post on how to sell small-balance commercial mortgages as tools.