NMP - September 2016 - 16

✒ co ia rn l er co the m m er c Optimize your small-balance commercial mortgage transaction process By Michael Boggiano H 1. Turn in a complete submission package. Be sure to review your lender's checklist of requirements and ask any questions you might have. Communicate to the borrower what documentation is required and encourage them to submit the necessary documents as quickly as possible. By following the lender's guidelines for submission and presenting a complete, organized package, you will establish credibility with the lender and expedite the process. 2. See if a previous title policy is available. Commercial title requests typically take longer to process than their residential counterparts and there's a higher likelihood of issues, such as liens or encumbrances, being present. Having a previous title policy does not mean you will avoid issues with the title, but it can help streamline the process when underwriting begins. NationalMortgageProfessional.com SEPTEMBER 2016 n National Mortgage Professional Magazine n continued from page 15 Five Tips to Expedite Closing ow you open a small-balance commercial transaction determines how it closes. While some lenders specialize in creating a smooth and reliable transaction process for brokers and borrowers, there are steps you can take to make a big difference for your clients. Try incorporating the following five tips the next time you partner with a lender on a small-balance commercial mortgage deal. 16 nmp news flash 3. Ensure a speedy appraisal. Help the borrower understand the complexity of commercial appraisals. Manage expectations by explaining that the valuation is based on both an income and sales approach. Appraisers must conduct market research for comparable sales and for market level rents, expenses, cap rates, vacancy and rent loss levels. One of the best things you can do early in the process is visit the property for a first-hand look. Make sure the subject property matches the description given by the borrower and perform an objective self-evaluation of the projected property value. You can prevent delays by submitting all documentation (property financials, leases, rent roll, photographs, etc.) before the appraisal is ordered. 4. Get complete property insurance and contact information from the borrower. This will save time as you near closing day. among the top 10 list of priciest residential markets in Coldwell Banker's 2016 Real Estate Home Listing Report, with six rankings based in the Silicon Valley region. Coldwell Banker uses a fourbedroom, two-bathroom home to reach its data conclusions. For this report, the California markets that reigned as most expensive were Saratoga (where a fourbedroom/two-bathroom home averages $2.45 million), followed by Newport Beach ($2.1 million), Cupertino ($1.81 million) Redwood City ($1.8 million), Arcadia ($1.74 million), Carmel ($1.72 million), San Francisco ($1.67 million), La Cañada Flintridge ($1.57 million), Sunnyvale ($1.5 million) and Los Gatos ($1.47 million). "While there are 25 communities in the U.S. where the average price of a four-bed, two-bath home is more than $1 million, it's fascinating to find that nearly 40 percent of the cities we studied had like-sized homes for less than $250,000," said Charlie Young, president and CEO of Coldwell Banker Real Estate LLC. As for the other end of the price spectrum, Detroit was ranked as the most affordable city, where one could buy a four-bedroom/twobathroom home for $64,110. The other most affordable markets, as per Coldwell Banker's metric, were Cleveland ($73,073), Park Forest, Ill. ($78,392), Jamestown, N.Y. ($88,891), Utica, N.Y. ($92,891), Wilkes-Barre, Pa. ($94,436), Scranton, Pa. ($104,842), Huntington, Ind. ($105,614), Augusta, Ga. ($106,567) and Palatka, Fla. ($110,655). Homeowners Brimming With Confidence, Renters Not So Much 5. Communicate! Effective communication is essential for a successful closing. Set and manage borrower expectations from start to finish, and reach out to your account manager or lender contact whenever something is unclear. By facilitating a smooth transaction, you enhance your role as a trusted advisor to clients, which can earn you future business and valuable referrals. Michael Boggiano is national sales manager for Silver Hill Funding, a small-balance commercial mortgage lender offering nationwide financing from $250,000 to $1 million. He may be reached by phone at (888) 988-8843 or e-mail MikeB@SilverHillFunding.com. SPONSORED EDITORIAL It's a good September to be a homeowner, according to the latest Zillow Housing Confidence Index, which reached 67.3 in July, up 0.4 from the last index report in January. Seven out of every 10 homeowners surveyed for this index report said now is a good time to sell a home, while less than 65 percent of homeowners surveyed said now is a good time to buy. However, 38 percent of renters surveyed felt it was a good time to buy a home. But in the most expensive housing markets- including New York City, San Francisco, San Jose and Seattle- about half of the renters surveyed expressed minimal confidence in their ability to afford a home in the near future. But whether the current confidence levels expressed by homeowners will continue into 2017 remains to be seen. "During the past two years, housing confidence has increased in all but two of the metro areas that we study," said Terry Loebs, the founder of Pulsenomics LLC, whose company conducted the research on behalf of Zillow. "Rising home equity levels, healthy housing market expectations among Millennials, and resilient homeownership aspirations among minority groups have all been factors in the robust readings of overall U.S. housing confidence. However, within certain metro areas and market segments, key sentiment indicators have begun to fade. Our measure of housing market expectations among residents of the largest and most expensive U.S. cities has actually fallen this year, and within most metro areas, the anxieties of prospective home buyers continue to rise. These and other signals in the [new] data suggest that home price appreciation and housing confidence could weaken in the coming months." And speaking of renting, new data released by Apartment List found rents up by 0.1 percent from July to August, with national median rent prices of $1,120 for a one-bedroom and $1,300 for a two-bedroom unit. On a year-overyear measurement, rents are up by 2.3 percent from August 2015. The highest rents among major metro areas are found in East and West Coast cities, with New York City having the most expensive rents ($3,550 for a one-bedroom unit and $5,200 for a two-bedroom unit) and San Francisco in second place ($3,420 for a one-bedroom unit and $4,720 for a two-bedroom unit). Colorado Springs, Colo., saw the highest rent increases over last year, averaging 10.7 percent rent growth. Tacoma, Wash., saw the second greatest year-over-year rent growth at 9.2 percent, and Manchester, N.H., right behind with 8.6 percent year-over-year growth. continued on page 36 http://www.NationalMortgageProfessional.com

Table of Contents for the Digital Edition of NMP - September 2016

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