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Understanding your Underwriter to get your Borrower a Commercial Mortgage

Commercial Mortgage
Posted on 
March 26, 2015

As a commercial mortgage broker, it’s important for you to have an understanding of your lender’s underwriting process and the information you need to provide for said process to move smoothly. Getting all of the details straight the first time around will inspire confidence in both your borrower and your lender, and will help you close more commercial mortgages.  Here’s what you need to get started:

Ask the right questions.

When working with a borrower seeking a commercial mortgage, you need to make sure to get all of the information your lender will need. Be sure to ask borrowers all of the pertinent questions about their property, their plans, their business and cash flow, and how the loan will benefit them. Having the answers to these questions ready when you send your lender a scenario adds to your professionalism and credibility as a commercial mortgage broker.

Know your borrower’s credit history.

For a lender, one of the most important tools for making a lending decision is a borrower’s credit score. As the broker, you should know your borrower’s credit scores and should be able to access and send a recent credit report to your lender. If your borrower had credit issues in the past, make sure you can adequately explain them.

Submit the correct documents.

Once you’ve got all the information you need, you can submit your borrower’s loan scenario. In order to make this a seamless process, it’s important to make sure you send your lender all of the documents they’ll need to evaluate your borrower’s commercial mortgage request. For example, at APEX, we require an executive summary of the loan, a 1003 or commercial mortgage application, a tri-merge credit report, and photos of the property if possible.

Prepare your borrower.

Some commercial mortgage lenders require a borrower interview before a financing decision is made. Talk to your lender about what the interview will entail, and then prepare your borrower accordingly.

Work with the lender.

As a commercial mortgage broker, it’s important that you cooperate with your lender if any problems should arise. If you do your best to help solve any potential issues, your lender will take notice and will be very willing to work with you on future commercial mortgage deals.

Providing your small-balance commercial lender with the above information, preparing your borrower for the lending process and working with your lender when problems arise are all crucial elements to closing a commercial mortgage loan quickly and easily. Asking the right questions, providing your lender with the necessary documents and making sure your borrower is ready to participate in the process makes getting your borrower the financing they need much simpler. Following the above advice will not only make you a star in the eyes of your lender and borrowers, it will help you close more commercial mortgage loans.

For more information about how APEX can help you close more commercial mortgage loans, call 800-262-2739.


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