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Fielding Small-Balance Commercial Mortgages

Posted on 
April 28, 2016

We go to baseball games to watch our favorite players knock the ball out of the park, but the defensive side of the game is equally important. While in the field, players need to be able to accurately read each hit. Similarly, brokers in the business of closing small-balance commercial mortgages need to be able to read each of the deals they receive in order to determine whether or not they can close it.

Here’s how you can determine what kind of deal you’ve got:

Ground/fly out:

For ballplayers, not every at-bat is going to result in a hit. Likewise, not every deal a mortgage broker receives from a source or borrower is going to result in a closed loan. There are plenty of reasons a borrower might not qualify for a small-balance commercial mortgage, and it’s best for brokers to understand early on in the process if they don’t have a lender that will fit a borrower’s needs or qualifications. A quick no is better for your borrower than a drawn-out turn down.


There are some small-balance commercial mortgage requests you’ll receive that seem promising but still need work. These are like singles in baseball; you’ve got a runner on base, but there’s a lot of work that needs to be done before they can score. Whether that work is convincing your lender to take on a riskier borrower, providing additional information and documentation or supplying a credit explanation, make sure you put in the extra effort if you feel the deal is worth it.

Extra-base hit:

An extra base hit is a double or a triple. These are the hits that put runners in scoring position and require just a little extra effort for a run. Your extra-base-hit mortgage requests will be those scenarios where the lender is on board, but you may need to work to convince your borrower to accept a higher rate or pay a larger appraisal fee.

Home run:

A player knocking the ball out of the park is the most exciting type of at-bat. A financing request that will be a perfect fit for your small-balance commercial mortgage lender is an exciting prospect for a broker. These are the deals where minimal effort is required and the loan closes quickly and without fuss. They don’t happen as often as you’d like, but they’re not impossible.

In order to succeed as a mortgage broker, you need to be able to determine quickly which small-balance commercial mortgages you can close and which you can’t. Like players in the field, being able to read a situation is crucial in making your decisions and will help you close more loans.


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