In order to be successful, it’s important for mortgage brokers to work with a variety of lenders, including flexible lenders who specialize in small-balance commercial financing. While banks and other traditional funding sources are going to be important to your business, a small-balance commercial lender that offers flexibility will allow you to fund tougher deals and earn additional income.
Here’s what to expect from a flexible lender:
A variety of programs
The first thing that you’ll need to look for if flexibility is an important quality for your small-balance commercial lender to have is a number of different programs. You’ll likely be working with borrowers who vary in terms of their credit history, the properties they’re looking to pledge as collateral and their financial situations. These borrowers will likely qualify for a variety of rates and terms, so it’s important for you to be able to present the best financing option for each borrower. You need to work with a lender that offers a variety of programs that fit multiple types of commercial borrowers.
The willingness to listen to a borrower’s story
Another sign that a small-balance commercial mortgage lender is flexible is that they’re willing to take the time to get to know your borrower and their unique financial situation. These are lenders who understand the obstacles that small business owners face, and they’re willing to work with borrowers to resolve any issues in order to provide the best possible commercial mortgage.
Underwriting on a case-by-case basis
While banks and other traditional lenders have strict guidelines that often lead to borrowers being reduced to their credit score, alternative commercial lenders underwrite each deal based on a variety of factors. These lenders understand that borrowers are more than a credit score, and that it’s possible to underwrite commercial mortgages for business owners whose credit histories aren’t spotless or who have faced other financial obstacles.
A side effect of flexibility in a small-balance commercial mortgage lender is that they’re very adaptable. If the market changes, or if issues arise in the industry, they’re going to find ways to continue doing business and providing commercial financing to borrowers. This means that both you and your borrowers can depend on them.
For brokers closing commercial mortgages, a flexible lender is going to be a crucial factor in earning more. Look for lenders with a variety of programs designed to fit the needs of small business owners, a willingness to listen, a common-sense approach to underwriting, and overall adaptability. These lenders will help you close more deals and increase your income.