First impressions are very important, and it’s no different in the commercial mortgage industry. You want to make a great first impression with every small-balance commercial loan you submit. In order to do so, you need to provide all of the information your lender will need up front. Here is the information you’ll need to present your borrower’s loan request:
Provide plenty of information about the property.
For many non-conforming lenders, the property that your borrower is pledging as collateral is a crucial piece of the lending puzzle. Give your lender as much information about your borrower’s building as you can. Know the location, the size and the approximate value. Make sure you provide pictures, as well. Read more tips in our previous post on selling commercial non-conforming loans.
Understand and explain your borrower’s business.
Before taking your borrower’s financing request to a lender, get to know them and their business. Understand what it is they do, and how their business would benefit from this loan. You should also be able to provide relevant financial information about the business.
Be prepared to discuss your borrower’s credit history.
Credit is one of the most important tools your lender will use when evaluating your borrower’s situation. You need to provide your lender with an up-to-date report with trade lines and scores. You also need to be prepared to discuss any past financial issues. Don’t delay the inevitable. Be upfront with your lender about derogatory credit issues.
Know their capacity to pay.
Your lender needs to know that the borrower can repay the commercial mortgage. Include all of the relevant financial information that proves your borrower can make their monthly payments.
Provide details about the use of funds.
You borrower’s plans for the money are of interest to any lender. Make sure you detail these plans in the loan submission summary, and explain how the loan will help your borrower and their business.
Making a good first impression with your initial loan submission summary can determine whether or not your borrower will get the financing they need. As a commercial mortgage broker, it’s your job to collect all of the necessary information and documents, and present them to the lender. A complete and well-done loan submission will increase your borrower’s chances of obtaining financing, as well as increasing your credibility and standing with the lender. Read more on writing effective loan submission summary reports.