Credit scores and reports are some of the most important tools a lender has at their disposal when underwriting a commercial mortgage. Because of this, it’s crucial for brokers to understand each borrower’s credit history and how it could impact any loans for which they apply, as well as how to help borrowers with less-than-stellar credit achieve their financial goals.

Below is a selection of some of our blogs dedicated to helping brokers understand the significance of credit in the commercial lending process.

The Importance of Credit Reports in Commercial Lending

A borrower’s credit is one of the most important metrics a commercial mortgage lender uses to determine their financial strength, as well as the terms of the mortgage. Because of this, it’s crucial for brokers to understand the significance of credit reports and the differences that may appear between the free credit sites, as well as the three major credit bureaus in order to best prepare themselves and their borrowers. Click here to read more.

Why All Credit Scores Are Not Alike

Here’s the scenario: You’re working to get your borrower the commercial mortgage they need. The lender asks for some basic information to review the mortgage request, including a credit report. Your borrower pulls one of the free reports available online.  Eventually, the lender pulls a tri-merge credit report and it turns out there are some differences. Click here to learn more about why.

How to Handle a Commercial Borrower with Credit Problems

There are plenty of small business owners with less-than-stellar credit who still need to obtain financing. As a commercial mortgage broker, it’s your job to find these non-bankable borrowers a lender that understands their unique set of challenges and can fund their mortgage request. In order to accomplish this, you need to be prepared to prove that your borrower’s credit issues are in the past and that they can handle taking on new debt. Click here to read about the questions you need to ask when working on your borrower’s poor credit explanation.

Crafting a Credit Explanation for Commercial Mortgage Borrowers

There are plenty of small business owners out there who need commercial mortgages but are unable to obtain them from a traditional financing source because of past credit issues. If you choose to work with these borrowers as a commercial mortgage broker, it’s your job to find lenders who will fund these borrowers’ requests. In order to do so, you’ll need to seek out alternative commercial mortgage lenders and prove to them that your borrower’s credit issues are behind them and that they can handle the debt. Then, you’ll need to provide them with a thorough credit explanation. Click here to learn about the information you’ll need.

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