Applications & Processing

Commercial vs. Residential

Who Does What: Lenders vs. Mortgage Brokers

For residential buyers, a mortgage broker acts as your personal loan guide connecting you to multiple lenders and helping you find the right loan product based on your financial profile. The lender is the financial institution that funds the loan. Brokers are usually compensated by the lender, giving you access to more options without extra cost.

For commercial buyers or investors, you may work with a commercial mortgage broker, a direct commercial lender, or a bank loan officer. Commercial financing is often more complex and tailored to the deal’s risk profile, borrower experience, and property income potential.

Residential loan applications are usually completed online through secure broker or lender portals. These forms collect your income, credit, and asset information for underwriting.

Commercial loan applications require a deeper dive often including a loan proposal package with borrower financials and business plans. Lenders may require a rent roll, property income statements, tax returns for your business entity, and a breakdown of tenant leases (if applicable).

• 2 years of W-2s or tax returns (if self-employed)
• Recent pay stubs (typically last 60 days)
• 2–3 months of bank statements
• Retirement and investment account statements
• Documentation of other income (rental, alimony, etc.)
• Credit card and loan statements
• Government-issued photo ID
• Green card or visa, if applicable
• Existing mortgage statements (for refinances or second loans)

• Last 2 years of business and personal tax returns
• Year-to-date profit and loss statements
• Rent roll (for income-producing properties)
• Property operating statements
• Organizational documents for your entity (LLC, LP, Corp)
• Personal financial statement
• Schedule of real estate owned (SREO)
• Purchase contract and/or letter of intent (LOI)
• Environmental reports or appraisals (if already available)

Residential underwriting focuses on your personal income, creditworthiness, and debt-to income ratio. Once under contract, the property itself is reviewed through an appraisal.

Commercial underwriting is more layered. Lenders assess both you and the asset reviewing the property’s net operating income (NOI), capitalization rate, tenant quality, and your experience managing similar investments. They may require additional reports or third-party inspections during due diligence.