Non-bankable commercial mortgages present a great opportunity for brokers looking to expand their product offerings and increase their income. However, in order to close these loans, you need to learn how to sell them to borrowers who are likely to have some objections if they were hoping to qualify for a bank loan.
Here’s how you can get your borrower on board with a small-balance commercial mortgage:
Educate your borrowers.
Some of your clients will have objections to small-balance commercial mortgage terms simply because they’re unfamiliar with the product. Take the time to explain to your borrower why they have not qualified for bank financing and why a small-balance commercial mortgage is the best solution for their needs.
Focus on the strengths of the loan.
When selling a small-balance commercial mortgage, it’s best to emphasize the positive aspects of the offer. Whether it’s a lower-than-expected rate, a lack of upfront fees to the borrower or a fast and easy closing, make sure to draw your borrower’s attention to the best aspects of the loan. Learn more in our previous post Broker Tips for Selling Non-Conforming Commercial Mortgages
Remind your borrower of their goals.
At the end of the day, your borrower is seeking commercial financing for a reason, and brokers should do their best to keep clients focused on the objectives. If a small-balance commercial mortgage is the only way your borrower will be able to pay off a ballooning mortgage, take care of delinquent taxes or purchase a new property, make sure that they understand that.
It’s not unusual for brokers to experience push back from borrowers when selling a small-balance commercial mortgage. However, it will be easier to sell your borrower on the loan if you help them to understand why it’s the best option, emphasize the positive aspects of the loan and keep them focused on their business goals. Keep all of this in mind, and you’ll be likely to close more loans and earn more in commissions.