The Top 4 Commercial Property Mortgage Broker Mistakes
Nobody is above mistakes but when it comes to property mortgage business, some mistakes can lead to substantial negative effects. For enlightenment sake, here are top 4 mistakes a property mortgage broker can make when exercising their duties to close a mortgage deal.
- Sending an incomplete application
When evaluating a borrower’s financial situation towards a mortgage, there are certain documents that would need to be submitted. These documents include summary of the deal, credit report, personal financial statement, and other documents. If all the documents are not submitted it can lead to delay in processing, or worse, a rejection of the borrower’s application. This is why, for property mortgage brokers, care should be taken with proper diligence in order not to look unprofessional or disorganized.
- Setting the borrower’s expectations too high
This is one of the most common mistakes some brokers make. Brokers need to explain clearly what the borrower should be expecting so that they don’t get too disappointed when their mortgage is not approved. If a broker is dealing with a non-bankable borrower who cannot get bank rates, the broker should let the broker know the type of small bank loans they would be able to get. It’s always better to give a lower expectation and deliver more than the expectation.
- Ordering an appraisal
One of the mistakes most new brokers make is ordering a new appraisal for the borrower. If the borrower has done an appraisal previously, it will be better to stick with that proposal and send it to the lender instead of ordering a new one from a trusted appraiser. Most times, this exercise usually turns out to be a waste of the borrower’s money.
- Promising to provide residential rates to the commercial borrower
In the property mortgage business, it is unwise to promise the borrower a lower rate. Once the borrower does not meet the requirements for a bank loan, it will be a mistake to promise them rates similar to the ones a bank will offer. If the borrower fails to get those rates, they will only be disappointed in the broker and loose trust in him.
Although there might be challenges on the way to a successful mortgage application, the above are top 4 mistakes a broker can easily avoid during the mortgage lending process.