As a commercial mortgage broker, it’s crucial for you to build a network of lenders, develop solid referral sources and know the details of the loan requests you submit. The more you understand about these three things, the less difficult it will be to submit and close commercial mortgages. Here’s what commercial mortgage lenders want you to know before you send them a loan scenario:
First, you need to take the time to understand the lender you’ve chosen to work with. Learn about their commercial mortgage programs. Get to know their process. Do they do all of their underwriting up front? If so, you need to make sure you get all of the relevant documents and information to them as quickly as possible. Be sure to ask all of the lenders you work with about the way they do business and what they expect from you. It will increase your credibility as a mortgage broker and will make the process of closing commercial mortgage loans much simpler.
Your referral sources:
Additionally, you should build and maintain a network of referral sources. It’s important to connect with local CPAs, attorneys, real estate agents and bankers in order to ensure a steady stream of commercial mortgage deals. Whether you choose to connect with these sources in traditional settings such as your local chamber of commerce or through the Internet is up to you. We suggest utilizing both in order to develop as many referral sources as possible. Remember when connecting with these sources to sell your skills as a commercial mortgage broker and emphasize how you can help them.
In order for your lender to make a financing decision regarding your borrower, you need to get them all of the pertinent information regarding the loan scenario. Make sure you present your lender with an application, a credit report and a summary of the deal. Include information about the building your borrower is pledging as collateral, such as its location and value. Get to know your borrower Find out what kind of business they operate and what their plans for the commercial mortgage are. If your borrower is non-bankable, explain their credit situation. You should learn as much about their situation as possible so that you can work with your lender to find them the best financing solution available.
Making the effort to understand the lenders and borrowers you work with, as well as building and maintaining a network of mortgage referral sources, goes a long way to establishing your credibility as a serious commercial mortgage broker. Your lenders and borrowers will appreciate the effort, and it will also speed up the process of underwriting and closing each of your deals. Simply put, your knowledge on the three subjects above will allow you to close more loans and earn additional income.