When you’re working with non-bankable borrowers, your storytelling abilities are very important. Non-conforming lenders are willing to work with these borrowers, as long as you’re able to make clear your borrower’s situation. As a commercial mortgage broker, you need to explain why your borrower was turned down by their bank, what their current financial situation is and what they plan to use the money for. Here’s what you’ll need to provide to your lender in order to get your borrower the financing they need.
Craft an effective loan submission summary.
The first thing you need to do before submitting your borrower’s mortgage request is write a loan submission summary. This should include basic information about your borrower or the borrowing entity, the property itself and the plans your borrower has for the money.
Understand and explain the borrower’s credit history.
While you should touch on this briefly in the loan submission summary, you’ll need to develop an understanding of your borrower’s credit history. It’s important for you to be able to access your borrower’s credit report, as well as explain any past credit issues to the satisfaction of your commercial mortgage lender.
Collect information about your borrower’s property.
The more your lender knows about your borrower’s property, the easier it will be for them to underwrite the loan. Make sure you include the location and size of the property, as well as the property type and the income the property generates. You should also provide pictures of the property to your lender.
Understand your borrower’s business.
You should also include information about the type of business your borrower runs from the property. Whether it’s a business they run themselves or the property has been rented out, your lender will need to know.
When working with story lenders, you need to develop your ability to tell your borrowers’ stories. Small-balance commercial mortgage lenders like APEX specialize in helping non-bankable borrowers, but they’ll need as much information as possible to properly underwrite the loan. By providing the information above up front, you’ll be making the loan process that much easier and will earn your commission that much faster.