Find a GREAT Commercial Lender

How to Find a GREAT Commercial Lender

We had to do a lot of searching for ideal commercial programs to offer our borrowers. And, in some cases we even created some products to deliver what we believe a real commercial borrower wants, as some products didn’t even exist. Essentially we did over a year’s worth of research before we felt we had exactly what we needed to offer our clientele. The research that we conducted was very enlightening to us, and we feel that many of the things we learned will be helpful to you as well. So, here are just a few items that you can use to compare to make sure we’re doing our job or to make sure you select a reliable and competent commercial broker elsewhere.

Return phone calls in a timely manner- Let’s face it, sometimes a borrower can

get a little nervous and edgy. And, those kinds of phone calls aren’t the kind that any busy commercial lender really wants to take time for, but if a client is going to take the time to call then it’s important enough for a true professional to return that phone call. In spite of the other 100 loans we’re working on, our time is never more important than our clients. If it were me and a so-called professional didn’t return my calls, I’m going to assume that either they don’t have good news for me and thus are too chicken to call me back, or they don’t value my business and thus I need to take my business elsewhere. Not returning phone calls in a timely manner is definitely a danger sign, and unfortunately we have found it to be abundant in the commercial lending world.
Tell it like it really is- On several occasions it was clear that the associate we worked with was merely telling us information that they thought we wanted to hear

instead of what was truly the case. Getting the straight story up front is obviously less painful and time consuming- and in some cases less COSTLY than getting the straight scoop once we’ve already elevated our blood pressure and come to the point where we’re “fed up to here”. If a professional truly understands the commercial lending process then the information they give you up-front should assist everyone in avoiding potential pitfalls later. A commercial loan can be extremely complicated and change course with no fault to anyone. But, those occasions should be rare and usually can be avoided with plenty of “discovery” up-front.
Pay attention to details- The commercial loan requires at least FIVE TIMES MORE ANALYSIS than any other loan, including residential loans. If you view a commercial

broker’s website or marketing materials and you see errors in spelling, punctuation, or an overall poor presentation, etc. then you may want to take your business elsewhere. The smallest of details can completely “kill” a loan and make it more expensive by having to repackage it to take somewhere else. If that happens, one of the first questions that will be asked by a prospective lender is “why are you sending this loan to us?” Having to admit that a mortgage professional “messed up” on a loan that was intended to close elsewhere doesn’t exactly get things started off on a good note. Details are extremely important, and paying attention to them isn’t something that a true professional will skimp on.
Only deal with a COMMERCIAL broker- We’ll let you in on a little secret; The residential mortgage market is not as abundant as it has been in times past. Rates are

going up. Most folks have already refinanced their homes and are not looking to do so again. As a result there are many residential mortgage brokers that are feeling the pain in their wallets. So, they think that trying their hand at commercial lending is worth a gamble. However, this is VERY dangerous thinking- for YOU. After all, you wouldn’t go to a dentist for the flu, would you? They may both be doctors, but their specialties are dramatically different. As we mentioned earlier, there is an extensive amount of analysis and expertise that is required in order to successfully broker a commercial loan. After all, the whole purpose of going to a mortgage broker instead of the financial institution directly is so that you don’t have to deal with all of the hassles of shopping for the best deal for you. Residential loans have VERY LITTLE in common with commercial loans. Trying to approach them the same way will lead to a fiasco. Additionally, because there is very little regulation in the commercial lending industry, the same laws don’t exist to protect you if a deal goes bad as there are in the residential industry. Bottom line- dealing with an inexperienced commercial broker will only bring you headaches and extra expense in the end.