10 Tips for Mortgage Brokers Submitting Loans
When submitting loan requests to a private lender, it is important to provide as much information as you can to get a quick response and ensure that your deal is funded. Hard money and private mortgages do typically don’t need all the documentation banks need, but the more information a broker can provide, the better chance they will have at getting their loan funded. Use the below 10 tips as guidance for how to best approach a private lender.
- Prepare a complete loan package: Lenders typically require a comprehensive loan package that includes financial statements, rent rolls, property details, and other relevant documents. Make sure all required documents are included and up to date.
- Highlight the strengths of the property: Emphasize the positive aspects of the property, such as its location, condition, and cash flow potential. This can help the lender understand the value of the property and the potential for a successful loan.
- Provide accurate and detailed financials: Provide accurate financial information about the property, including income and expenses, debt service coverage ratio, and other relevant financial metrics. This information should be presented in a clear and organized manner.
- Explain any potential risks or challenges: Be transparent about any potential risks or challenges associated with the property. This can help the lender evaluate the loan and make an informed decision.
- Provide a detailed business plan: If the loan is for a business property, provide a detailed business plan that outlines the goals and objectives of the business. This can help the lender understand the potential for success and the ability of the borrower to repay the loan.
- Provide details on the borrower’s profile: The borrower’s credit score, financial history, and experience in the industry can all impact the lender’s decision. Make sure to present a complete borrower profile that demonstrates the ability to repay the loan.
- Show comparables: Provide comparable properties and their financials to support the valuation of the property and potential rental income.
- Provide a clear loan request: Clearly state the loan amount, terms, and purpose of the loan. This can help the lender understand the borrower’s needs and make a decision more efficiently.
- Follow up with the lender: Stay in contact with the lender throughout the process to answer any questions and provide any additional information that may be required.
- Be prepared to negotiate: Be prepared to negotiate the terms of the loan, including interest rates, fees, and collateral requirements. This can help the borrower secure the best possible loan terms.
