When you’re working with non-bankable borrowers looking for commercial mortgages, you’re likely to hear some common objections when you first try to sell them on deals. Your borrowers might want to know why the rate is so high, why there is a prepayment penalty or why the appraisal costs so much. Here are some tried and true methods to help you overcome these objections and sell your borrowers the commercial non-conforming loans they need.
- Keep them focused on their goals. Make sure you understand what your borrower is trying to accomplish and remind them of their goals throughout the lending process. If this mortgage from a small commercial lender is the only way your borrower can pay off their taxes, purchase a commercial property, or renovate their property, make sure they know it. Many borrowers will be willing to compromise in order to achieve their objectives.
- Under-promise and over-deliver. Small commercial mortgages can vary greatly when it comes to rates and terms. Explain to your borrowers that you will get them the best rates for which they qualify. Small commercial mortgage lenders are not competing with banks; don’t tell your non-bankable clients that you can get them bank rates.
- Sell the strengths of the loan. Make sure to tout the positives of the deal you’re trying to sell. Is the rate or the LTV better than expected? Tell the borrower. Will the lender be able to get your borrower a good deal on the commercial appraisal? Let them know. Will the deal close quickly and easily? Talk up that aspect of the mortgage.
- Give your borrowers options. No borrower likes to feel as though they’re trapped with only one financing choice. You’ll have better luck with your clients if you provide them with options. For example, you can let them choose whether a fixed or adjustable rate is right for their situation.
- Educate your borrowers. There will be times when your borrowers have issues with certain aspects of their mortgages. Be sure that you can address your borrowers’ concerns and explain those features of the loans. It’s important for you to be able to help your borrowers to understand their small commercial mortgages.
Selling small, commercial non-conforming loans can be a challenge. It’s important for commercial brokers to keep their clients focused and to be honest about the kinds of deals for which they will be eligible. Commercial brokers should also be able to sell the strengths of a mortgage, provide their clients with choices and educate their borrowers. If a commercial broker is able to do all of this, then they’re likely to sell their borrowers the small commercial mortgages they need in order to achieve their goals.