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A commercial mortgage broker generally 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 property. Mortgage brokers sell loans to their clients and often work with multiple financial institutions, allowing a wider array of borrowing options. Brokers should know the way the mortgage loan market operates in order to offer effective services.
Most commercial mortgage brokers have to be licensed, but requirements may 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 with information about the markets in which they work.
Since there are many different mortgage loan packages and products, one of the duties of a commercial mortgage broker is to know all of the products available. Brokers are also generally called upon to market these products to potential borrowers or clients. The broker should be able to pinpoint the specific loan product or package that will best fit each client's needs.
Communication is a large part of the job of a commercial mortgage broker. For example, not only does the broker generally work with financial institutions in order to obtain a loan for a potential commercial property owner, the broker must also be able to explain all aspects of the mortgage loan process to the client. This ensures that the client is aware of all the details of the loan.
Knowledge of laws related to the mortgage industry are generally important for commercial mortgage brokers to know. The mortgage broker should not only know the federal and state regulations pertaining to the mortgage or finance markets, but should also be able to explain these laws to the client. More specifically, the commercial mortgage broker must be able to explain everything in a particular loan agreement so that clients understand any potential legal ramifications. This includes information related to borrower default or other issues.
After a client has shown interest in applying for a mortgage loan, the commercial mortgage broker looks at the eligibility of the applicant. The client's ability to repay the loan is investigated by researching the client's credit history, as well as gathering necessary documents. Once this has been done, the mortgage broker will submit an application to the appropriate lending institution. Continuing in the role of liaison, the commercial mortgage broker also informs the applicant whether or not the application is approved.