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Commercial mortgage brokers act as intermediaries between financial institutions and individuals seeking mortgage loans for commercial properties. They must be licensed, have sales and computer skills, and be knowledgeable about mortgage lending markets and laws. They review applicants’ eligibility and send applications to lending institutions.
A commercial mortgage broker usually works in the real estate field. An individual in this position acts as a liaison between financial institutions and individuals seeking mortgage loans to finance commercial properties. Mortgage brokers sell loans to their customers and often work with multiple financial institutions, allowing for a wider range of loan options. Brokers must know how the mortgage lending market operates in order to offer effective services.
Most commercial mortgage brokers need to be licensed, but requirements can vary by state. Many mortgage brokers work on commission, which is one reason sales experience is important for this position. Computer skills are also important, as many commercial mortgage brokers maintain databases of information about the markets they work in.
Because there are many different mortgage loan packages and products, one of the duties of a commercial mortgage broker is to be familiar with all the products available. Brokers are also usually called upon to market these products to potential clients or borrowers. The broker should be able to identify the specific loan product or package that will best meet each client’s needs.
Communication is a big part of a commercial mortgage broker’s job. For example, not only does the broker usually work with financial institutions to obtain a loan for a potential commercial property owner, but he must also be able to explain to the client all aspects of the mortgage lending process. This ensures that the customer is aware of all loan details.
Knowledge of laws relating to the mortgage industry is generally important for commercial mortgage brokers to know. Not only must the mortgage broker be familiar with federal and state regulations pertaining to the mortgage or financial markets, but he must also be able to explain these laws to the client. More specifically, the commercial mortgage broker must be able to explain everything in a specific loan agreement so that clients understand any potential legal ramifications. This includes information related to the borrower’s default or other issues.
Once a customer has expressed an interest in applying for a mortgage loan, the commercial mortgage broker reviews the applicant’s eligibility. The customer’s ability to repay the loan is investigated by researching the customer’s credit history as well as gathering the necessary documents. Once this is done, the mortgage broker will send an application to the appropriate lending institution. Continuing in the contact role, the commercial mortgage broker also informs the applicant whether or not the application has been approved.
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