Brokers experienced in the commercial mortgage niche are well aware that the borrowers with whom they do business will require a wide variety of financing solutions. However, if you’re new to the industry, coming across non-bankable borrowers and getting them financing can seem challenging. If you know where to look, though, there are many lenders who make the commercial lending process very simple for their brokers. So, let’s discuss end-to-end commercial lending and how it benefits brokers.
For those brokers new to the business, end-to-end commercial lending simply refers to a process in which the deal is brought to a place that can handle everything from application to closing. All the broker needs to do is submit the commercial mortgage request and work with the lender to answer any additional questions to get the deal funded. This is a particularly useful model for brokers working with non-bankable borrowers seeking small-balance commercial mortgages. So, what are the benefits?
Simpler application process:
Since you’re working with borrowers who can’t obtain bank loans, you won’t need to submit quite as much paperwork. Generally, end-to-end lenders who work with non-bankable clients only need a completed application, a recent credit report with tradelines, a summary of the deal including use of funds, and some recent photos of the property to begin reviewing a deal. Every lender will have different requirements, though, so make sure to discuss what’s needed before submitting a deal.
More flexibility in underwriting:
Because these lenders see deals through from beginning to end, and because they’re for non-bankable borrowers, the underwriting process is often simpler and more flexible. These lenders are willing to listen to your borrowers’ stories and to work to find a solution that fits their financing needs.
End-to-end commercial mortgage lenders handle the process from application submission, through underwriting and processing, to closing and, in some case, servicing. Because they control every step of the process, it’s much simpler for these lenders to close loans quickly, particularly for non-bankable borrowers. Your borrowers get the money they need fast, and you get your commission check quickly.
Closing small-balance commercial mortgages is a great way for brokers to earn additional income. If you’re looking for a commercial mortgage process that is simple, flexible, and quick, working with end-to-end lenders will be worthwhile.