Expand mobile version menu

Mortgage Broker

Real-Life Activities

Real-Life Communication

Mortgage brokers have to be excellent communicators. They must know how to read financial statements and mortgage quotes. They must know how to explain complex calculations. More importantly, they have to relate to people from all backgrounds.

"The real key in my line of work is people skills, and how you get along with the borrowers and lenders," says Don Taylor. "Pretty much everybody offers the same services and the same rates. But what separates you from everybody else are personal relationships."

Negotiation skills are also important, Taylor says. "If you are a good poker player, you can be a good mortgage broker."

You are a commercial broker. A property owner -- let's call him Mark -- approaches you for a $1 million mortgage. He wants to buy a large apartment with 164 suites. After you look over his proposal and his business records and talk to your lenders, you reach the conclusion that he cannot get the loan he wants.

But you can offer him a loan of $850,000. He would have 20 years to pay it down. The mortgage would be "closed" for the first five years at 7.75 percent. However, he must meet all conditions within 45 days, or the deal is off. Here are the conditions he must meet:

  • Get an official appraisal of the building's value
  • Get the building inspected
  • Get an environmental assessment

What do you say to Mark?