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Getting your client’s commercial mortgage application approved by a credit committee can prove challenging as lenders' processes and criteria are often vastly different and gathering the information requested can seem overwhelming.
Talking us through the best way to get your commercial application approved, Rob Lankey Managing Director at Aldermore Commercial Mortgages gives us his top ten tips…
Tip 10: Think like a lender
When you’re preparing your client’s application for submission to a lender, ask yourself a key question: would you stake your own money on the deal? I know this might sound a bit old fashioned but if your answer is ‘no’ then there’s a fair chance you’ll get the same answer from a lender. Ask yourself why you wouldn’t risk your own hard-earned cash and try to establish what could be done to address any issues you have identified.
In many instances there is actually a lot that can be done to restructure a deal to make it acceptable to a lender, if everyone is realistic from the word go. Also, pick the phone up and chat the deal through with a loan manager. Here at Aldermore, we are always happy to explore how we can structure a deal to make it work. However, there are also occasions when a deal is never going to stack-up, no matter how well it may be presented. If that’s the case, you’re better being honest with your client and not creating false hopes.
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