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How to Solve Challenges and Close Commercial Mortgages

Commercial Mortgage
Posted on 
November 12, 2020

Brokering small-balance commercial mortgages is a great way to increase business and close more loans. However, you are likely to face some challenges in this business, particularly if you’re working with borrowers who can’t obtain bank financing. There’s no need to be discouraged when you hit a snag; you simply need to know how to solve common problems.

Below is a selection of some of our blogs to help you close more challenging small-balance commercial mortgages.

Closing Time-Sensitive Commercial Mortgages

Securing a small-balance commercial mortgage for a borrower is often enough of a challenge without the added trouble of waiting around for a lender to determine whether or not they can finance the request. Time-sensitive deals require a lender who will handle your borrower’s request both quickly and thoroughly. If you’re a broker working with a borrower who needs a commercial mortgage fast, it’s important to choose a lender that can meet your borrower’s needs within the required time frame. Click here for the questions you need to ask to determine if a lender is equipped to close time-sensitive commercial mortgages.

Securing Commercial Mortgages to Pay Off Merchant Cash Advances

For some small business owners, a merchant cash advance might be a good solution for short-term financing needs, provided they pay it off quickly. However, these cash advances can quickly become a problem as borrowers are subjected to the increasing rates these lenders charge. This can lead to cycle of payday loans resulting in a fairly rapid accumulation of debt if a borrower isn’t careful. If you’re a commercial mortgage broker, a borrower like this may come to you seeking more stable financing, and knowing how to assist them will help you close more deals. Click here to read about what you need to do to secure commercial mortgages to pay off merchant cash advances.

How to Handle a Commercial Borrower with Credit Problems

There are plenty of small business owners with less-than-stellar credit who still need to obtain financing. As a commercial mortgage broker, it’s your job to find these non-bankable borrowers a lender that understands their unique set of challenges and can fund their mortgage request. In order to accomplish this, you need to be prepared to prove that your borrower’s credit issues are in the past and that they can handle taking on new debt. Click here for the questions you need to ask when working on your borrower’s credit explanation.

Refinancing a Ballooning Commercial Mortgage

For many commercial mortgage borrowers, refinancing a ballooning note can be a challenge. Once the lender calls the note due, they have a limited amount of time to provide the funds to pay off the loan. In this situation, a non-conforming commercial mortgage lender that offers fixed and fully-amortizing programs could be a great alternative for your borrowers. Click here to learn more about why a fixed and fully-amortizing solution might be better for your borrowers.


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