In most cases, a commercial mortgage broker works in the real estate industry. A person in this position acts as a link between financial institutions and people looking for commercial real estate mortgage loans. Mortgage brokers sell loans to their clients and frequently work with a number of different financial institutions to provide a wider range of borrowing options. In order to provide effective services, brokers must understand how the mortgage loan market works.
Most commercial mortgage brokers must be licensed, though state requirements may differ. Because many mortgage brokers work on commission, sales experience is essential for this position. Many commercial mortgage brokers maintain databases with information about the markets in which they work, so computer skills are also necessary.
Because there are so many different mortgage loan packages and products, one of a commercial mortgage broker’s responsibilities is to be familiar with all of them. Brokers are frequently tasked with selling these products to potential borrowers or clients. The broker should be able to pinpoint the exact loan product or package that will best meet the needs of each client.
A commercial mortgage broker’s job entails a lot of communication. For example, a broker must be able to not only work with financial institutions to obtain a loan for a potential commercial property owner, but also to explain all aspects of the mortgage loan process to the client. This ensures that the client is fully informed about the loan.
Commercial mortgage brokers should be familiar with the laws governing the mortgage industry in general. Not only should the mortgage broker be familiar with federal and state regulations governing the mortgage and finance markets, but he or she should also be able to explain them to the client. More specifically, the commercial mortgage broker must be able to explain every detail of a loan agreement to clients so that they are aware of any potential legal implications. This may include details about a borrower’s default or other issues.
When a client expresses an interest in applying for a mortgage loan, the commercial mortgage broker investigates the applicant’s eligibility. The client’s ability to repay the loan is determined looking into his or her credit history and gathering the necessary documents. The mortgage broker will then submit an application to the appropriate lending institution after this has been completed. In addition to acting as a liaison, the commercial mortgage broker informs the applicant whether the application has been approved.