Generating Good Faith Estimates (GFE’s) can be extremely time consuming, especially if done the wrong way. I remember when I was first starting out in the industry, it seemed like all I was doing all day was filling out GFE’s, and getting no where. When talking to a customer, it’s easy to say, “Hey, I’ll just send you a GFE, and you can look it over and tell me what you think”. But, this is the wrong way to approach things. Let me explain…here are a few tips to help you.
1. On the sales call, don’t ever offer to send a customer a Good Faith Estimate unless they specifically ask for one. What they will do is take your estimate and nit-pick with you over ever line item. Then they will compare you to everyone else’s GFE and you will LOSE. Yes. Lose. Because with all the sharks and charlatans out there, there will always be someone who will magically “beat your closing costs”. And, as we all know that much of the closing costs are not known at the initial time of the loan origination.
2. Instead, what you want to do is send out a “loan proposal”, which is something that they can review and includes all the payments, selling points, etc. about the loan. Are they consolidating debt? Taking cash out? Or have been previously renting? These are all things which you will want to cover and are motivating “hot buttons” that you can use to help them decide. In my business, I use excel templates that simply pop all my numbers in (also included in my system). Other loan proposal packages in the industry are The Mortgage Coach, and Loan Magic. These are the big expensive guys. I offer a simplified one in my system which does the same job without all the bells and whistles.
3. Of course, once the sale is made and you are proceeding ahead, go ahead and send the GFE. You’re legally obligated to (within 3 days of taking the 1003 application). If you are just chatting with the customer and have just done some initial pre-qualification work, you don’t have to. My loan closing system will help you get a pretty good idea of someone’s situation before taking a full 1003. In this business, time is money, so if you can save yourself from time-wasters, you’ve actually made yourself more profitable in the long run. You can learn more about my system at http://www.loanclosingsystem.com
4. If you do send a GFE to a customer before the loan has been completely SOLD, expect them not to call back…be shocked…confused…irate…or a whole host of other responses. Many of them, and even ones who have bought property before, have forgotten what a GFE looks like and all the fees that are included.
5. Along with every GFE, I send a pre-written template letter that has an explanation of many of the fees listed, and emphasizes that we “disclose all known fees upfront”, and have “no broker fee, no origination fee, no rate-lock fee, no application fee, etc. I include one of these templates in my Sink or Swim Loan Closing System you can easily modify and use as your own.
6. Always remember to follow-up immediately after sending the GFE. Make sure they have received it. It’s also a good excuse to give them a call back. Any reason to “hit” the customer again is a good one. For example, “Mr. Prospect, I know you asked for a GFE in order to help you decide on a mortgage. I just wanted to let you know that I emailed/faxed that over to you and was calling to make sure you have received it. Again we have no junk fees like others have, and I wanted you to see upfront that we are being honest in our assessment of the total fees on the loan. Of course as you know third-party fees may fluctuate slightly, but our fees will remain the same. Would you like to go over the Good Faith Estimate, line by line?”
7. Don’t include junk fees. Customers hate being charged for application fees, rate-lock fees, broker’s fees, doc prep fees, and unnecessary other fees. They will call you to the mat for these. Sometimes it’s good to put a little bit of padding in the fees, so you can take some of them off and be the “hero” to the customer. It all depends on the personality type of the customer. If you know they are a penny-pincher, throw in a few small fees, then agree to take them off as a gesture of good will. They will love you for it. :-) But hold your ground too and tell them that this is a special case and you expect that they will continue on in the process with you until closing. Sometimes, I tell them that I have to eat those fees taken off (this really gets them going).
8. Have GFE templates set up in Calyx Point, Genesis or whatever loan origination software you use. I simply click on the loan type (refinance or purchase), then loan terms and state, and all the information is input. I just have to tweak the variable fees by hand, such as title insurance and stamp taxes (if any). It takes me about 30 seconds to get a GFE out the door. I advise you to do the same. Refer to your product manual about how to do this or call technical support. Setting up templates is a powerful yet simple way to dramatically impact your business.
9. For combo loans, such as 80/20 etc. you will have to send two GFE’s, one for each loan (remember it is really two loans under one transaction). Most of the GFE fees will be absorbed by the first loan and the smaller second loan will just have a few smaller fees on it. Nothing much to worry about though, because it won’t send your closing costs skyrocketing. (Now, trying to sell an 80/20 combo loan to a customer is a whole other article!!! Lol!!!) Again, having ready-made templates will speed this process.
In conclusion, don’t waste your time sending Good Faith Estimates to people who won’t buy. Spend an extra minute or two upfront to gather the correct information and see if the deal is even a decent go-ahead or not. Develop your own method of determining this, or use my already built system at http://www.loanclosingsystem.com
The choice is yours, but the most important thing is to take action and modify what you are currently doing. Only by doing this will you become the top producer you deserve to be.
Best of luck in your business. This is a wonderful industry to be in!
Monday, December 31, 2007
Thursday, December 27, 2007
How To Manage The Customer And Get The Tricky Mortgage Deal Closed
One of the toughest things as a loan officer to do is to know when to keep or kill a deal. Of course, we all want as much business as we can handle. But, spending time on loans that don’t close, wastes more time and leaves you with nothing to show for it. Not to mention, the good deals suffer and you’re out your commission!
Knowing when to “give-up” on a loan is just as important as knowing how to get the loan to the closing table. Here are some suggestions on how to manage your customers and get more loans closed:
1. Keep control of the customer from day one. Set down your expectations for the loan process and what you expect from the customer. Tell them that this is a “team effort”, and you are working as diligently as possible to get them the best rate and terms available for their situation. But, in order to do this, you need their cooperation and commitment to move forward. Tell them what you need, and ask them on what day you can expect to receive things by. I like to pin people down to a specific day. They hold me accountable, and I, in-turn, am holding them accountable as well.
2. Build rapport early on. Get a sense of the customer’s personality and what matters to them. Understand completely what their reasons are for doing the loan, and use these “motivating factors” to help steer them through the process. Every time I speak with a customer, I again tell them why they are doing this and hit them with their “benefits” (cash-out, debt consolidation, monthly savings, lower rate, etc.). It is the customer’s point of view that is most important. (By the way, my system will help you to uncover the customer’s true motivation and build rapport—I include very specific questions to ask! Visit http://www.loanclosingsystem.com to learn more).
3. Explain every detail of the loan process. Sometimes, being in the industry, we forget that not everyone understands how mortgages work. It can be a long road to the closing table, and you want to make sure the customer understands exactly what is going to happen and when. You don’t want them to think that they can just cancel third-party appointments such as appraisers or surveyors without consequence!
4. Always assume the loan if moving forward. Customers like to make excuses and waffle on certain things like getting their documents to you. What I do, is always assume we are pressing ahead and on track. I am the driver of this bus and let the customer know it. For example, “Mr. Jones, I was just getting your file ready for underwriting, however, there are just a few more pieces of information we need. Do you have a pen and paper ready? How soon do you think we can get these by? O.K., I will expect to see your documents on (date). Let me give you my fax number, etc.”. Everyday, you want to push the file ahead as far as you can. Push! Push! Push!
5. Listen for signs of waffling or hesitation. Here are some things to be aware of, (which may mean the customer is still shopping you or is not completely “sold”): customer holds-back on getting income/asset documents to you, customer keeps putting off appraisal appointment, there are recent inquiries on their credit report from other mortgage companies, you have received negative feedback from the lawyer or any other third party, customer doesn’t return calls. These are signs of a customer that isn’t fully on-board.
If you’ve done all these things and are still having difficulty with the customer, then it’s probably a good idea to kill the deal. There are many roadblocks you can overcome, but when the customer isn’t fully committed, you shouldn’t be either. You can’t drag someone to the closing table that doesn’t want to be there. Get rid of the bad loan and focus on loans you can close successfully.
Knowing when to “give-up” on a loan is just as important as knowing how to get the loan to the closing table. Here are some suggestions on how to manage your customers and get more loans closed:
1. Keep control of the customer from day one. Set down your expectations for the loan process and what you expect from the customer. Tell them that this is a “team effort”, and you are working as diligently as possible to get them the best rate and terms available for their situation. But, in order to do this, you need their cooperation and commitment to move forward. Tell them what you need, and ask them on what day you can expect to receive things by. I like to pin people down to a specific day. They hold me accountable, and I, in-turn, am holding them accountable as well.
2. Build rapport early on. Get a sense of the customer’s personality and what matters to them. Understand completely what their reasons are for doing the loan, and use these “motivating factors” to help steer them through the process. Every time I speak with a customer, I again tell them why they are doing this and hit them with their “benefits” (cash-out, debt consolidation, monthly savings, lower rate, etc.). It is the customer’s point of view that is most important. (By the way, my system will help you to uncover the customer’s true motivation and build rapport—I include very specific questions to ask! Visit http://www.loanclosingsystem.com to learn more).
3. Explain every detail of the loan process. Sometimes, being in the industry, we forget that not everyone understands how mortgages work. It can be a long road to the closing table, and you want to make sure the customer understands exactly what is going to happen and when. You don’t want them to think that they can just cancel third-party appointments such as appraisers or surveyors without consequence!
4. Always assume the loan if moving forward. Customers like to make excuses and waffle on certain things like getting their documents to you. What I do, is always assume we are pressing ahead and on track. I am the driver of this bus and let the customer know it. For example, “Mr. Jones, I was just getting your file ready for underwriting, however, there are just a few more pieces of information we need. Do you have a pen and paper ready? How soon do you think we can get these by? O.K., I will expect to see your documents on (date). Let me give you my fax number, etc.”. Everyday, you want to push the file ahead as far as you can. Push! Push! Push!
5. Listen for signs of waffling or hesitation. Here are some things to be aware of, (which may mean the customer is still shopping you or is not completely “sold”): customer holds-back on getting income/asset documents to you, customer keeps putting off appraisal appointment, there are recent inquiries on their credit report from other mortgage companies, you have received negative feedback from the lawyer or any other third party, customer doesn’t return calls. These are signs of a customer that isn’t fully on-board.
If you’ve done all these things and are still having difficulty with the customer, then it’s probably a good idea to kill the deal. There are many roadblocks you can overcome, but when the customer isn’t fully committed, you shouldn’t be either. You can’t drag someone to the closing table that doesn’t want to be there. Get rid of the bad loan and focus on loans you can close successfully.
Monday, December 24, 2007
What To Do With A Low Mortgage Appraisal On A Loan
On every loan, there are a number of hurdles that must be overcome before the loan is “cleared to close” by the underwriter. One of the most important hurdles is the appraised value on the property. A deal can be dead on arrival, if the property comes in too low. A value can never be high enough (given the local market conditions), provided that there is comparable value to support it.
I’ve seen too many loan officers work so hard on a loan, only to have it fall apart when the report comes back. But, all is not lost! With my Sink or Swim training at http://www.loanclosingsystem.com and the things I tell loan officers to look out for, I’ve also seen deals come back to life!
Could you have saved your last dead deal? How much money did you lose in commission, because of a low appraisal? Follow these steps and your next deal will be a closer NOT a loser…
* Get the appraiser to go back out and re-evaluate the property. Did he overlook something? Did he do most of the report at his desk and spend little time out at the property? Was it a rushed job?
* Be sure to check the comparable properties listed on the report. Ask for additional comparables so you can make sure that the appraiser is valuing it properly.
* Ask your realtor contacts if any similar properties will be closing soon. You may be able to use these as comparables if need be.
* Will the bank allow a desk appraisal? If there is significant equity in the property, or the purchaser is putting a lot of money down, is there even a need for a full appraisal? What did automatic underwriting come back with? Will the bank accept a drive-by appraisal?
* Did you do your homework upfront first? Always be sure to check the property value on your own. A great site I use is domania.com. Also you’ll want to check the local tax assessors office to get a rough idea of property values in the area. Do this, and you’ll always be able to get a sense if the deal looks “iffy” or not.
* If it’s a purchase loan, you can still do the loan, but purchaser will have to make up the difference in down payment amount and pay for the additional “missing equity” with extra money down. Does the borrower have the funds to do this? Are they even that interested in the property to pay above “market value”? Don’t count this out! I’ve seen it happen!
* Will the seller lower the asking price? This can help make up the difference between the appraised value and the sales price.
* Can you get rid of any seller concessions, which may artificially have raised the purchase price of the home? Again, this will help lower the sales price and the shorten the gap.
* Is there still time before you submit the loan to have an new appraisal done by another company? If the original report had serious flaws, you may want to consider this. Keep in mind that all appraisers work within specific guidelines and one appraiser may not be any better than another.
Please, don’t give up too soon! Just when you think the deal is dead, it may come back to life. Follow my advice above, and you’ll be all the richer next time.
I’ve seen too many loan officers work so hard on a loan, only to have it fall apart when the report comes back. But, all is not lost! With my Sink or Swim training at http://www.loanclosingsystem.com and the things I tell loan officers to look out for, I’ve also seen deals come back to life!
Could you have saved your last dead deal? How much money did you lose in commission, because of a low appraisal? Follow these steps and your next deal will be a closer NOT a loser…
* Get the appraiser to go back out and re-evaluate the property. Did he overlook something? Did he do most of the report at his desk and spend little time out at the property? Was it a rushed job?
* Be sure to check the comparable properties listed on the report. Ask for additional comparables so you can make sure that the appraiser is valuing it properly.
* Ask your realtor contacts if any similar properties will be closing soon. You may be able to use these as comparables if need be.
* Will the bank allow a desk appraisal? If there is significant equity in the property, or the purchaser is putting a lot of money down, is there even a need for a full appraisal? What did automatic underwriting come back with? Will the bank accept a drive-by appraisal?
* Did you do your homework upfront first? Always be sure to check the property value on your own. A great site I use is domania.com. Also you’ll want to check the local tax assessors office to get a rough idea of property values in the area. Do this, and you’ll always be able to get a sense if the deal looks “iffy” or not.
* If it’s a purchase loan, you can still do the loan, but purchaser will have to make up the difference in down payment amount and pay for the additional “missing equity” with extra money down. Does the borrower have the funds to do this? Are they even that interested in the property to pay above “market value”? Don’t count this out! I’ve seen it happen!
* Will the seller lower the asking price? This can help make up the difference between the appraised value and the sales price.
* Can you get rid of any seller concessions, which may artificially have raised the purchase price of the home? Again, this will help lower the sales price and the shorten the gap.
* Is there still time before you submit the loan to have an new appraisal done by another company? If the original report had serious flaws, you may want to consider this. Keep in mind that all appraisers work within specific guidelines and one appraiser may not be any better than another.
Please, don’t give up too soon! Just when you think the deal is dead, it may come back to life. Follow my advice above, and you’ll be all the richer next time.
Friday, December 21, 2007
What To Do When You Feel Defeated In The Mortgage Industry And Are Ready To Give Up
Every day I hear from loan officers across the country who are fed-up with low commissions and dwindling paychecks as the reality of the new mortgage economy sets in. They’ve had it and many can’t hold on much longer. Others take a more balanced view and decide to hanker down and weather the rough seas ahead by changing their approach.
Here are some things to keep in mind when you feel defeated and are ready to give up.
* With all things being equal, realize that what you are doing now isn’t working. And in order to survive you will need to modify your tactics. Keep doing what you’re doing and you’ll keep getting what you’re getting. Take a cold, hard look at your marketing efforts and decide now to change your approach. Consider new lead sources.
* Go after the customers that need you and stop chasing the customers that don’t. Refinance loans are done. Trying to save someone an 1/8 of a point on their interest rate isn’t worth the closing costs on the loan. The re-coup period of their upfront cash investment in the process can be 7 to 10 years or longer. Not to mention the volatility of the interest rates and their “savings” could go poof in an instant.
* Change your viewpoint. Know that however well you are doing, someone else is always doing better (this gives you something to strive for). And, no matter how bad you are doing, someone else is always doing worse (this shows how far you’ve come in your career). Knowing where you stand in relation to others helps you to put a stake in the ground.
* Try something new. The difference between success and failure is knowledge. Improve your sales skills by taking a mortgage training course or by using some of the sales tools that are currently out there. Although, I mostly train here in the northeast, there are many good mortgage trainers in all parts of the country who can help you. If you don’t have any money, you will want to consider some of the free sales training seminars put on by the larger wholesalers. These are often 1 to 2 day events packed with some of the best and biggest top producers in the mortgage industry. They give you a tremendous amount of sales and marketing information you can use immediately—and it’s all FREE!!! (By the way, my system at http://www.loanclosingsystem.com lists a lot of the free seminars, tools and resources available, including contact information).
* Decide how much longer you can stick things out. Having a definite end-game in mind, puts things into perspective. It also gives you “fight or flight” motivation. Often times when the stakes are high, people rise to the occasion and achieve new heights. Look at your cash reserves, review your expenses, then set a “must-achieve” goal for the month you’ll need to hit in order to survive. If you don’t hit that number and have little in the pipeline, decide then and there if a sales career is for you. Don’t wither on the vine and deplete your savings. If you don’t love your job, look for something else in the industry that is still mortgage related such as processor, appraiser or underwriter. Maybe that position would better suit you?
In closing, remember no matter what happens, know that nothing happens unless you MAKE IT HAPPEN.
Here are some things to keep in mind when you feel defeated and are ready to give up.
* With all things being equal, realize that what you are doing now isn’t working. And in order to survive you will need to modify your tactics. Keep doing what you’re doing and you’ll keep getting what you’re getting. Take a cold, hard look at your marketing efforts and decide now to change your approach. Consider new lead sources.
* Go after the customers that need you and stop chasing the customers that don’t. Refinance loans are done. Trying to save someone an 1/8 of a point on their interest rate isn’t worth the closing costs on the loan. The re-coup period of their upfront cash investment in the process can be 7 to 10 years or longer. Not to mention the volatility of the interest rates and their “savings” could go poof in an instant.
* Change your viewpoint. Know that however well you are doing, someone else is always doing better (this gives you something to strive for). And, no matter how bad you are doing, someone else is always doing worse (this shows how far you’ve come in your career). Knowing where you stand in relation to others helps you to put a stake in the ground.
* Try something new. The difference between success and failure is knowledge. Improve your sales skills by taking a mortgage training course or by using some of the sales tools that are currently out there. Although, I mostly train here in the northeast, there are many good mortgage trainers in all parts of the country who can help you. If you don’t have any money, you will want to consider some of the free sales training seminars put on by the larger wholesalers. These are often 1 to 2 day events packed with some of the best and biggest top producers in the mortgage industry. They give you a tremendous amount of sales and marketing information you can use immediately—and it’s all FREE!!! (By the way, my system at http://www.loanclosingsystem.com lists a lot of the free seminars, tools and resources available, including contact information).
* Decide how much longer you can stick things out. Having a definite end-game in mind, puts things into perspective. It also gives you “fight or flight” motivation. Often times when the stakes are high, people rise to the occasion and achieve new heights. Look at your cash reserves, review your expenses, then set a “must-achieve” goal for the month you’ll need to hit in order to survive. If you don’t hit that number and have little in the pipeline, decide then and there if a sales career is for you. Don’t wither on the vine and deplete your savings. If you don’t love your job, look for something else in the industry that is still mortgage related such as processor, appraiser or underwriter. Maybe that position would better suit you?
In closing, remember no matter what happens, know that nothing happens unless you MAKE IT HAPPEN.
Tuesday, December 18, 2007
What Mortgage Industry Insiders Read To Stay Up To Date In Their Business
Keeping up-to-date on everything going on in the mortgage industry can be a daunting task. With all of the coming changes from HUD and RESPSA, staying aware of rules and regulations is not only a necessity—it’s an absolute must! You do not want to risk a career you have worked so hard for!
Here are some of the best mortgage publications every insider reads. You should too! Not only is there plenty of information regarding RESPA’s new rules, but there are some great sales and marketing ideas. If you want to grow your business to the next level, make an investment and become a subscriber to each of them. Your bank account will thank you! ;-)
PUBLICATIONS:
Broker Magazine
A great magazine with an emphasis on sales and marketing tactics. The articles are detailed and well written. One magazine, I look forward to reading every month and my office is never without!
http://www.brokermagazine.com
Mortgage Banking Magazine
The official trade magazine of the Mortgage Bankers Association of America. Although geared more towards actual lenders than brokers, each issue contains a wealth of information. Especially if you are a mortgage broker who wants to someday transition to becoming a full-fledged lender.
http://www.mortgagebankingmagazine.com/
Mortgage Originator Magazine
One of the earliest industry publications, Mortgage Originator Magazine is considered to be the granddaddy of mortgage how-to advice. Their website has a great mortgage discussion board. Publishes the annual Top Originators List for the country. Only the very best can achieve this high honor (some day I’ll be there, and you will too!)
http://www.mortgageoriginator.com
Mortgage Press Newspaper
Publishes an individual mortgage newspaper for each state. Usually, it is also the official publication of the State’s mortgage industry association. One of the few publications that contains State specific information. Ask to be added to their mailing list. Sometimes they give away free subscriptions.
http://www.mortgagepress.com
Mortgage Technology News
One of the few industry publications dedicated to the technology aspects of the industry. Covers topics such as loan origination software, better pipeline management, and mortgage servicing. It’s what every IT Director in the mortgage industry reads.
http://www.mortgage-technology.com
National Mortgage News/Origination News Magazine
Another great publication with excellent “intelligence”. Has a great people and places section. I like to read this to keep up with the hiring and firing in the industry. It’s amazing how often people move around!
http://www.nationalmortgagenews.com
Scotsman Guide
Confused by the thousands of loan programs out there? Get the Scotsman Guide. This is one of the few publications I rely on daily to help place those difficult loans. Has loan matrixes and underwriting guidelines. This one magazine alone will save you hours of hunting around. Close one loan with it, and you’ve paid for the equivalent of a 15-20 year subscription!!!
http://www.scotsmanguide.com
ONLINE-ONLY PUBLICATIONS:
Loan Officer Magazine
A great website put together by Karen Deis, an industry veteran. I have a lot of respect for her and her work. Some interesting ideas can be found on her site.
http://www.loanofficermagazine.com
Mortgage Media Mag
More of an industry directory. Has thousands of links to other mortgage sites, including net branch, and companies who hire at home loan officers. Also, has a free monthly mortgage newsletter with the latest happenings.
http://www.mortgagemag.com
Top Producer Strategies
Tips from some of the top producers in the industry! All free! You can’t beat that price!!! Sign up for the monthly newsletter. This is high quality stuff!
http://www.topproducerstrategies.com
Information truly is power, and I want us all to benefit from each other’s knowledge.
Here are some of the best mortgage publications every insider reads. You should too! Not only is there plenty of information regarding RESPA’s new rules, but there are some great sales and marketing ideas. If you want to grow your business to the next level, make an investment and become a subscriber to each of them. Your bank account will thank you! ;-)
PUBLICATIONS:
Broker Magazine
A great magazine with an emphasis on sales and marketing tactics. The articles are detailed and well written. One magazine, I look forward to reading every month and my office is never without!
http://www.brokermagazine.com
Mortgage Banking Magazine
The official trade magazine of the Mortgage Bankers Association of America. Although geared more towards actual lenders than brokers, each issue contains a wealth of information. Especially if you are a mortgage broker who wants to someday transition to becoming a full-fledged lender.
http://www.mortgagebankingmagazine.com/
Mortgage Originator Magazine
One of the earliest industry publications, Mortgage Originator Magazine is considered to be the granddaddy of mortgage how-to advice. Their website has a great mortgage discussion board. Publishes the annual Top Originators List for the country. Only the very best can achieve this high honor (some day I’ll be there, and you will too!)
http://www.mortgageoriginator.com
Mortgage Press Newspaper
Publishes an individual mortgage newspaper for each state. Usually, it is also the official publication of the State’s mortgage industry association. One of the few publications that contains State specific information. Ask to be added to their mailing list. Sometimes they give away free subscriptions.
http://www.mortgagepress.com
Mortgage Technology News
One of the few industry publications dedicated to the technology aspects of the industry. Covers topics such as loan origination software, better pipeline management, and mortgage servicing. It’s what every IT Director in the mortgage industry reads.
http://www.mortgage-technology.com
National Mortgage News/Origination News Magazine
Another great publication with excellent “intelligence”. Has a great people and places section. I like to read this to keep up with the hiring and firing in the industry. It’s amazing how often people move around!
http://www.nationalmortgagenews.com
Scotsman Guide
Confused by the thousands of loan programs out there? Get the Scotsman Guide. This is one of the few publications I rely on daily to help place those difficult loans. Has loan matrixes and underwriting guidelines. This one magazine alone will save you hours of hunting around. Close one loan with it, and you’ve paid for the equivalent of a 15-20 year subscription!!!
http://www.scotsmanguide.com
ONLINE-ONLY PUBLICATIONS:
Loan Officer Magazine
A great website put together by Karen Deis, an industry veteran. I have a lot of respect for her and her work. Some interesting ideas can be found on her site.
http://www.loanofficermagazine.com
Mortgage Media Mag
More of an industry directory. Has thousands of links to other mortgage sites, including net branch, and companies who hire at home loan officers. Also, has a free monthly mortgage newsletter with the latest happenings.
http://www.mortgagemag.com
Top Producer Strategies
Tips from some of the top producers in the industry! All free! You can’t beat that price!!! Sign up for the monthly newsletter. This is high quality stuff!
http://www.topproducerstrategies.com
Information truly is power, and I want us all to benefit from each other’s knowledge.
Saturday, December 15, 2007
Unconventional Ways To Approach Realtors Without Donuts As A Loan Officer
With the rise of interest rates and the drying-up of the refinance market, it makes sense to transition your business to the purchase money market. After all, home purchase loans will become the bulk of your broker transactions and it is only prudent to be prepared to capture these leads.
Of course, you will always have the occasional debt consolidation, or divorce cash-out refinance, even some b-paper subprime loans. But, the majority of your coming business will be in the purchase market and you must make efforts to get out there or you will not survive. The days of the ringing phone and order taking are over.
One of the questions I get asked over and over again, is how to best approach realtor offices. Aren’t they the ones with purchase loans? They hold the key, right? Yes, they do. But, why should they just “give” you loans? What’s in it for them?
How many times have you called a realtor and they’ve said the following:
“We’re already working with someone.”
“We don’t give our business away.”
“We don’t know you.”
“Why should we work with you?”
“We don’t want your free donuts!”
They’re saying this because they’ve already been raked over the coals by about 200 other loan officers. They’re sick of empty promises and loans that don’t close. They’re afraid to lose their commission. They don’t want to take the risk of dealing with you. And…yes, it’s true…your donuts weren’t very good. ;-)
If you want to attract realtors, you’ve got to catch them when they are least expecting it. You can’t do this with blind cold-calling. They’re sales people too, and their guard is up the instant you call. They’ve got other calls, and they don’t want to deal with you. To them, you’re a nobody.
Don’t despair. Here are some of the best unconventional ways I’ve found to approach real estate agents and the difference in their attitude is amazing!
* Business networking groups such as BNI (Business Networking International) and Leads Club. These are groups that allow only one person from each profession. So there is one lawyer, one appraiser, one realtor, one loan officer, etc. And they all trade business with each other. The groups are set up this way to encourage member participation. But, finding an active BNI group that has an L.O. position open is rare. People rarely give this spot up, and for good reason. It means they are getting leads and it works! It is worth your effort to call all the local chapters and put your name on the list. If the person leaves they have to replace them. Or if enough people show interest, they will start-up a new group. And you want to be the first to take advantage of it.
* You can always try starting your own weekly networking group and approach referral partners with the incentive of generating referrals through the group. This is a harder thing to do than joining a structured environment like BNI, but may be worth considering if there is no other choice. You have to pitch this the right way, and get all the other professions set-up first before you approach the real estate agent. This way, you’ve got something to offer.
* One technique I found that always worked was to give the realtor potential leads. As many of you know, I stopped buying Internet leads a long time ago and started generating my own leads through my lead site at http://www.findthelowestrate.com When I call a realtor and I tell them I am looking for a business partner to work with that I can refer business to, their ears immediately perk-up. Now, you are not just another loan officer with your hand-out, but a long-term partner with a proven lead generation system. Forget the donuts. Bring leads instead. They taste better too.
* Give free seminars. Realtors are always looking for ways to educate their buyers. If you have the skills to present the mortgage industry in a nutshell, you can offer to host a free workshop for buyers. The key to getting this to work is to host it at the realtor’s office, so it looks like it’s from them and they can take credit for it. Your goal shouldn’t be to generate loans this first time, but rather to “prove” yourself and show some goodwill. There are always new realtors coming into the office, so you want to make yourself known. Eventually, there will be someone who isn’t working with anyone at the moment, or someone who is ready to change loan officers. You want to be this person!
* Show up at open houses. Open houses are always fun. See if they have already have a L.O. on site. If not, this is your perfect chance to introduce yourself. Ask how many people they got today and how many were pre-qualified. I always used to carry an extra table, chair, laptop, sign and rate sheets in my car to be ready to set-up shop in a moments notice. It cost them nothing and may lead to a qualified buyer. Yes, it’s ballsy, but worth a shot!
* I once knew a mortgage company that used to give away free advertising to realtors. They helped promote the properties the realtor was selling, by hosting the home flyers in their lobby. While potential borrowers were waiting, they had something to look through. It was a big selling point to attract real estate agents. You could also do cross mailings, lawn sign exchanges, newspaper co-ops, etc. Again, you are working long-term with realtors, not just asking for free loans.
These are just some of the best ideas I’ve used to help generate more purchase loans. I hope they help you get out there and connect. Realtors are a tricky bunch, but once you are in their good favor, they can be a steady stream of new business. Don’t give-up. Use my techniques and may your next loan be a closer.
Of course, you will always have the occasional debt consolidation, or divorce cash-out refinance, even some b-paper subprime loans. But, the majority of your coming business will be in the purchase market and you must make efforts to get out there or you will not survive. The days of the ringing phone and order taking are over.
One of the questions I get asked over and over again, is how to best approach realtor offices. Aren’t they the ones with purchase loans? They hold the key, right? Yes, they do. But, why should they just “give” you loans? What’s in it for them?
How many times have you called a realtor and they’ve said the following:
“We’re already working with someone.”
“We don’t give our business away.”
“We don’t know you.”
“Why should we work with you?”
“We don’t want your free donuts!”
They’re saying this because they’ve already been raked over the coals by about 200 other loan officers. They’re sick of empty promises and loans that don’t close. They’re afraid to lose their commission. They don’t want to take the risk of dealing with you. And…yes, it’s true…your donuts weren’t very good. ;-)
If you want to attract realtors, you’ve got to catch them when they are least expecting it. You can’t do this with blind cold-calling. They’re sales people too, and their guard is up the instant you call. They’ve got other calls, and they don’t want to deal with you. To them, you’re a nobody.
Don’t despair. Here are some of the best unconventional ways I’ve found to approach real estate agents and the difference in their attitude is amazing!
* Business networking groups such as BNI (Business Networking International) and Leads Club. These are groups that allow only one person from each profession. So there is one lawyer, one appraiser, one realtor, one loan officer, etc. And they all trade business with each other. The groups are set up this way to encourage member participation. But, finding an active BNI group that has an L.O. position open is rare. People rarely give this spot up, and for good reason. It means they are getting leads and it works! It is worth your effort to call all the local chapters and put your name on the list. If the person leaves they have to replace them. Or if enough people show interest, they will start-up a new group. And you want to be the first to take advantage of it.
* You can always try starting your own weekly networking group and approach referral partners with the incentive of generating referrals through the group. This is a harder thing to do than joining a structured environment like BNI, but may be worth considering if there is no other choice. You have to pitch this the right way, and get all the other professions set-up first before you approach the real estate agent. This way, you’ve got something to offer.
* One technique I found that always worked was to give the realtor potential leads. As many of you know, I stopped buying Internet leads a long time ago and started generating my own leads through my lead site at http://www.findthelowestrate.com When I call a realtor and I tell them I am looking for a business partner to work with that I can refer business to, their ears immediately perk-up. Now, you are not just another loan officer with your hand-out, but a long-term partner with a proven lead generation system. Forget the donuts. Bring leads instead. They taste better too.
* Give free seminars. Realtors are always looking for ways to educate their buyers. If you have the skills to present the mortgage industry in a nutshell, you can offer to host a free workshop for buyers. The key to getting this to work is to host it at the realtor’s office, so it looks like it’s from them and they can take credit for it. Your goal shouldn’t be to generate loans this first time, but rather to “prove” yourself and show some goodwill. There are always new realtors coming into the office, so you want to make yourself known. Eventually, there will be someone who isn’t working with anyone at the moment, or someone who is ready to change loan officers. You want to be this person!
* Show up at open houses. Open houses are always fun. See if they have already have a L.O. on site. If not, this is your perfect chance to introduce yourself. Ask how many people they got today and how many were pre-qualified. I always used to carry an extra table, chair, laptop, sign and rate sheets in my car to be ready to set-up shop in a moments notice. It cost them nothing and may lead to a qualified buyer. Yes, it’s ballsy, but worth a shot!
* I once knew a mortgage company that used to give away free advertising to realtors. They helped promote the properties the realtor was selling, by hosting the home flyers in their lobby. While potential borrowers were waiting, they had something to look through. It was a big selling point to attract real estate agents. You could also do cross mailings, lawn sign exchanges, newspaper co-ops, etc. Again, you are working long-term with realtors, not just asking for free loans.
These are just some of the best ideas I’ve used to help generate more purchase loans. I hope they help you get out there and connect. Realtors are a tricky bunch, but once you are in their good favor, they can be a steady stream of new business. Don’t give-up. Use my techniques and may your next loan be a closer.
Monday, December 10, 2007
Two Ways To Start Your Own Mortgage Company From Someone Who’s Been There And Done That
One of the most frequent questions I get asked from loan officers is, “How can I go out on my own and start my own mortgage company?” Often times, the person is sick and tired of low-commissions, office politics, too restrictive a time-schedule, etc. There are hundreds of reasons why they want to get out.
They see the money other loan officers are making, and wonder why they aren’t making that kind of money too? After all, they are doing the SAME work. The difference, very often, is just in the commission payout. Branching out on your own, is an instant pay-raise and can often double or triple the amount of commission you are currently earning.
There are two ways to start your own mortgage business.
1. Get your own broker license from the State.
2. Join an existing regional or national company as a “net branch”.
There are advantages and disadvantages of each. First off, getting your own license from the State isn’t easy. There are certain financial and experience thresholds that regulators look for before granting a broker’s license. Also, the capital requirements and start-up costs make this option extremely cost prohibitive. And, you’d be responsible not just for bringing in business and selling loans, but also hiring a processor, doing all the accounting and back office tasks, auditing, renting office space, etc.
Not to mention, that you have to go and set-up relationships with each lender you want to do business with. And some of them are pretty picky about who they deal with. If you’re a one-person company, you can forget about incentives and low pricing. You’re simply not worth their time.
By going entirely on your own, you can see quickly that your time would be exhausted with “chores”, leaving little available time to sell loans—unless you plan on working around the clock! And how long would a mortgage company last without new business?
But, getting your own license would give you 100% commission. Isn’t that what you want? 100%?
Another option is join an existing net branch company. Net branches are very popular in the industry and give you a number of advantages over going it alone.
A net branch is simply of way of doing business. You create your own personal branch, but under and existing mortgage company. You have freedom to do what you want and have all the benefits of being a large corporation.
Firstly, when you join a net branch, you are joining a ready-made structure with back-office support in place. That means they handle all the auditing, the compliance checks, the follow-up etc. Some even do processing. For this, they take part of the commission. So, instead of 100% (from going solo), you might just get 70% to 80%. Not bad, considering what you are earning currently. And you don’t have all the other regulatory headaches to contend with.
Net branches are typically 1 to 2 person shops, mostly professionals operating from their own home office, and selling on the road. In today’s digital age, this is entirely possible as most work is submitted electronically, or done over the phone and fax. Location is irrelevant.
By freeing-up your time--not getting bogged-down in the details--you can focus on bringing in new business and earning more money.
Remember, each net branch is different, and each has their own set of processing rules, guidelines, commission splits, fees, etc., and all should be examined closely before making a final decision.
Whether you decide to get your own brokers license or join a net branch is up to you, it depends on what your long-term goals are. Some people want 100% control over their destiny and want to create something new. That’s fine. That’s how entrepreneurs succeed. But, others don’t want the hassle of starting an entirely new business—they just want a higher paycheck to reach their goals.
They see the money other loan officers are making, and wonder why they aren’t making that kind of money too? After all, they are doing the SAME work. The difference, very often, is just in the commission payout. Branching out on your own, is an instant pay-raise and can often double or triple the amount of commission you are currently earning.
There are two ways to start your own mortgage business.
1. Get your own broker license from the State.
2. Join an existing regional or national company as a “net branch”.
There are advantages and disadvantages of each. First off, getting your own license from the State isn’t easy. There are certain financial and experience thresholds that regulators look for before granting a broker’s license. Also, the capital requirements and start-up costs make this option extremely cost prohibitive. And, you’d be responsible not just for bringing in business and selling loans, but also hiring a processor, doing all the accounting and back office tasks, auditing, renting office space, etc.
Not to mention, that you have to go and set-up relationships with each lender you want to do business with. And some of them are pretty picky about who they deal with. If you’re a one-person company, you can forget about incentives and low pricing. You’re simply not worth their time.
By going entirely on your own, you can see quickly that your time would be exhausted with “chores”, leaving little available time to sell loans—unless you plan on working around the clock! And how long would a mortgage company last without new business?
But, getting your own license would give you 100% commission. Isn’t that what you want? 100%?
Another option is join an existing net branch company. Net branches are very popular in the industry and give you a number of advantages over going it alone.
A net branch is simply of way of doing business. You create your own personal branch, but under and existing mortgage company. You have freedom to do what you want and have all the benefits of being a large corporation.
Firstly, when you join a net branch, you are joining a ready-made structure with back-office support in place. That means they handle all the auditing, the compliance checks, the follow-up etc. Some even do processing. For this, they take part of the commission. So, instead of 100% (from going solo), you might just get 70% to 80%. Not bad, considering what you are earning currently. And you don’t have all the other regulatory headaches to contend with.
Net branches are typically 1 to 2 person shops, mostly professionals operating from their own home office, and selling on the road. In today’s digital age, this is entirely possible as most work is submitted electronically, or done over the phone and fax. Location is irrelevant.
By freeing-up your time--not getting bogged-down in the details--you can focus on bringing in new business and earning more money.
Remember, each net branch is different, and each has their own set of processing rules, guidelines, commission splits, fees, etc., and all should be examined closely before making a final decision.
Whether you decide to get your own brokers license or join a net branch is up to you, it depends on what your long-term goals are. Some people want 100% control over their destiny and want to create something new. That’s fine. That’s how entrepreneurs succeed. But, others don’t want the hassle of starting an entirely new business—they just want a higher paycheck to reach their goals.
Friday, December 7, 2007
Traits And Skills Every Top Producer Needs To Be Successful In The Mortgage Business
When I was a branch manager, there were always certain traits and skills I looked for before deciding to hire someone. After years of experience, and learning things the hard way, I know what it takes to be successful. Not everyone is cut out to be a loan officer. The mortgage business is like no other, and it takes a certain type of person to be successful in this industry.
Here are some of the top traits and skills I believe every loan officer must have in order to be successful.
If you want to become a top producer…
1. You need to like the mortgage lifestyle. It needs to be more than just a “job” for you in order to put up with the demands on your time, life and family.
2. You need to be a motivated self-starter. You will either succeed or fail almost entirely based on your own individual efforts and no one else’s. If you are afraid to take the initiative, maybe this isn’t the right career for you.
3. You need to be a hard-worker and be willing to go the extra mile. Selling and closing a mortgage loan is NOT easy work or fast money.
4. You need to be smart worker. You are paid for results, not the amount of hours you put in. Organization, efficiency and productivity are the key words in this business. And a loan officer is only as good as his last loan. If you don’t systematize your business and outsource non-essential tasks, your time will be quickly eaten-up, making you less effective. Hence the reason why I invented my worksheets at http://www.loanclosingsystem.com
5. You need to enjoy solving "people’s problems". As the refinance boom and the easy loans have dried-up, you need to look at other ways you can originate business. Creative financing and thinking outside the box, will get you loans that others leave behind. Interest-only loans, debt consolidation, cash-out divorce loans, reverse mortgages, etc. are all alternative loans you need to be considering if you are to stay in this business for the long term.
6. You must have people skills and be able to interact with customers from all walks of life and economic situations.
7. You must be a good listener. The more you “hear” the customer, the less pushy “selling” you will have to do. Find out what is truly motivating them and offer them something that truly solves their problem, you’ll be more likely to get the sale.
8. You need to be emotionally stable and mature. You can’t play games or mess around with people’s financial situations if you are to maintain the trust and confidence of the other person. You also need to maintain your own sense of balance and fairness.
9. You need to know your product line inside and out. Knowing one lender is not enough, you must know at least 15 to 20 lenders, from A-paper to B-paper and beyond. How else are you going to be able to sell a customer something if you don’t know what you’re selling?
10. You need to be convinced of your product’s value. It should be easy to be enthusiastic about your product when you know you are truly helping somebody.
11. You need to be flexible and agile. The mortgage industry changes everyday in technology as well as fundamental ways of doing business. You must be willing to adapt to whatever is thrown at you.
12. You must be a constant learner. Even after many years originating loans, I still learn something new everyday. That’s why I love the industry so much! It’s an on-going education.
13. You have to persevere and never, ever give-up! Relentless perseverance is the only way you will succeed. When something doesn’t work, try doing something else! You can’t take rejection personally. If someone says “no”, it doesn’t mean they don’t like you. After all, they don’t even know you.
These are the traits and skills I teach my loan officers, and I would encourage you to print out this list and look for it before you decide to hire someone else. Remember, by emulating the qualities of top producers, you are more likely to become a top producer yourself.
Here are some of the top traits and skills I believe every loan officer must have in order to be successful.
If you want to become a top producer…
1. You need to like the mortgage lifestyle. It needs to be more than just a “job” for you in order to put up with the demands on your time, life and family.
2. You need to be a motivated self-starter. You will either succeed or fail almost entirely based on your own individual efforts and no one else’s. If you are afraid to take the initiative, maybe this isn’t the right career for you.
3. You need to be a hard-worker and be willing to go the extra mile. Selling and closing a mortgage loan is NOT easy work or fast money.
4. You need to be smart worker. You are paid for results, not the amount of hours you put in. Organization, efficiency and productivity are the key words in this business. And a loan officer is only as good as his last loan. If you don’t systematize your business and outsource non-essential tasks, your time will be quickly eaten-up, making you less effective. Hence the reason why I invented my worksheets at http://www.loanclosingsystem.com
5. You need to enjoy solving "people’s problems". As the refinance boom and the easy loans have dried-up, you need to look at other ways you can originate business. Creative financing and thinking outside the box, will get you loans that others leave behind. Interest-only loans, debt consolidation, cash-out divorce loans, reverse mortgages, etc. are all alternative loans you need to be considering if you are to stay in this business for the long term.
6. You must have people skills and be able to interact with customers from all walks of life and economic situations.
7. You must be a good listener. The more you “hear” the customer, the less pushy “selling” you will have to do. Find out what is truly motivating them and offer them something that truly solves their problem, you’ll be more likely to get the sale.
8. You need to be emotionally stable and mature. You can’t play games or mess around with people’s financial situations if you are to maintain the trust and confidence of the other person. You also need to maintain your own sense of balance and fairness.
9. You need to know your product line inside and out. Knowing one lender is not enough, you must know at least 15 to 20 lenders, from A-paper to B-paper and beyond. How else are you going to be able to sell a customer something if you don’t know what you’re selling?
10. You need to be convinced of your product’s value. It should be easy to be enthusiastic about your product when you know you are truly helping somebody.
11. You need to be flexible and agile. The mortgage industry changes everyday in technology as well as fundamental ways of doing business. You must be willing to adapt to whatever is thrown at you.
12. You must be a constant learner. Even after many years originating loans, I still learn something new everyday. That’s why I love the industry so much! It’s an on-going education.
13. You have to persevere and never, ever give-up! Relentless perseverance is the only way you will succeed. When something doesn’t work, try doing something else! You can’t take rejection personally. If someone says “no”, it doesn’t mean they don’t like you. After all, they don’t even know you.
These are the traits and skills I teach my loan officers, and I would encourage you to print out this list and look for it before you decide to hire someone else. Remember, by emulating the qualities of top producers, you are more likely to become a top producer yourself.
Tuesday, December 4, 2007
Thoughts To Steer By On Your Way To Success In The Mortgage Business, From One Loan Officer To Another
What sets one loan officer apart from another? And how do some people become “top producers” in their office, while others slowly squeak by? Surely, we all have the same amount of time, resources, and intelligence (debatable?!) available to us.
So why do some loan officers fail, while others succeed? Here are some points to remember which will help ensure your success…
Take control. Stay on top of things and be sure monitor your loans as they progress on their way to the closing table. Always be aware of what stage a file is in during process. Don’t trust anyone else with your commission check. Stay aware of any problems that arise, and work with your processor to fix them. If you can help speed things up, please do—but not at the expense of making new sales!
In my office, Nancy and I have a communications system in place (namely, my mortgage closing system). I religiously write down every detail of a file and go far beyond just the 1003. Questions I ask include:
“When are your taxes due?” (Useful for estimating accurate escrows).
“Will you both be available to sign closing documents in the next 30 days?” (Useful for scheduling purposes, I want to know ahead of time if any vacations or expected trips are planned).
“Do you need a set amount of money as cash-out at the closing table or will you take whatever is left over?” (Customers don’t understand that escrows can change, and they might be expecting a higher amount as cash-out than they actually receive).
And of course, the catchall question: “Is there anything else, financially, legally or otherwise, that I should know about that may affect your loan?” (Use this to disarm any landmines that may pop-up).
Remember to always put the customers needs first, ahead of yours. Empathize with the customer and let them know how hard you will work for them. Gain their trust early on, and the amount of referrals you will receive will be immeasurable.
Never let a detail slip by. Remember to ask all the important questions upfront. And, always, always, always, fill out the 1003 loan application completely and fully! There are no shortcuts to success.
Learn everything you can from the other, more experienced loan officers in your company and don’t be afraid to ask questions. I always ask my wholesale reps, attorneys, and appraisers questions. I want to know as much as I can about every facet of this business. And I know, that with each day as my knowledge increases, my job becomes easier, and the more sales I will make. You will too!
Never repeat the same mistake twice. When something goes wrong on a loan, ask yourself “Why?”, then try to brainstorm ways to tackle this hurdle so it doesn’t happen again. No loan closes as quickly as you think it will. By ironing out as many bumps as you can, it makes your next loan that much more streamlined and straightforward.
At the end of every loan we close, Nancy and I make a list of what went right, what went wrong, and why. We write down how we can improve the process and make things better. Taking 5 minutes after the closing to do this will pay many dividends to you in the future.
Stay focused on why you are in this business. Is it to help people? Do you enjoy the daily challenge of earning your own income? What is it that drives you to be successful? What goals do you have? What is your long-term plan?
For me, when I first started out, I was only earning about 10% commission on every loan I closed. That’s right, a measly, 10% on each one! Peanuts, you say??!!! But, I had a plan…and I knew that once I learned the mortgage business from the inside, I could move on to bigger and better things. (Not to mention, fatter commission checks!).
I sacrificed two years of my life to learn the ropes, with the prospect of earning, much, much, more in the future. Isn’t that what people do when they go to college? (I did that too, by the way!).
Remember this, no matter what your current firm is paying you now, there is always another mortgage company out there that will PAY YOU MORE! Do an online search for “mortgage net branch”, and you will find dozens of companies that will double or even triple your current commission check. Good sales people are hard-to-find and are always in demand. If you leave one job, don’t worry. You can easily find another. But, make sure you leave on your own terms--and more importantly--at a time of your choosing.
These are just a few of the things that I have helped me become successful. I know that when I hand a borrower’s file over to Nancy, she will take excellent care of the loan. And because I do my job as a loan officer as thoroughly as I can (by filling out everything on my worksheets), it makes her job that much easier.
As you can see, there are many different ways to become successful in this industry. Believe in yourself and what you are doing; put the customer’s needs first and ask the important questions upfront; and stay focused on what you want to get out of your business. If you only did these three things alone, you’d go far as a loan officer! Now go get ‘em!
So why do some loan officers fail, while others succeed? Here are some points to remember which will help ensure your success…
Take control. Stay on top of things and be sure monitor your loans as they progress on their way to the closing table. Always be aware of what stage a file is in during process. Don’t trust anyone else with your commission check. Stay aware of any problems that arise, and work with your processor to fix them. If you can help speed things up, please do—but not at the expense of making new sales!
In my office, Nancy and I have a communications system in place (namely, my mortgage closing system). I religiously write down every detail of a file and go far beyond just the 1003. Questions I ask include:
“When are your taxes due?” (Useful for estimating accurate escrows).
“Will you both be available to sign closing documents in the next 30 days?” (Useful for scheduling purposes, I want to know ahead of time if any vacations or expected trips are planned).
“Do you need a set amount of money as cash-out at the closing table or will you take whatever is left over?” (Customers don’t understand that escrows can change, and they might be expecting a higher amount as cash-out than they actually receive).
And of course, the catchall question: “Is there anything else, financially, legally or otherwise, that I should know about that may affect your loan?” (Use this to disarm any landmines that may pop-up).
Remember to always put the customers needs first, ahead of yours. Empathize with the customer and let them know how hard you will work for them. Gain their trust early on, and the amount of referrals you will receive will be immeasurable.
Never let a detail slip by. Remember to ask all the important questions upfront. And, always, always, always, fill out the 1003 loan application completely and fully! There are no shortcuts to success.
Learn everything you can from the other, more experienced loan officers in your company and don’t be afraid to ask questions. I always ask my wholesale reps, attorneys, and appraisers questions. I want to know as much as I can about every facet of this business. And I know, that with each day as my knowledge increases, my job becomes easier, and the more sales I will make. You will too!
Never repeat the same mistake twice. When something goes wrong on a loan, ask yourself “Why?”, then try to brainstorm ways to tackle this hurdle so it doesn’t happen again. No loan closes as quickly as you think it will. By ironing out as many bumps as you can, it makes your next loan that much more streamlined and straightforward.
At the end of every loan we close, Nancy and I make a list of what went right, what went wrong, and why. We write down how we can improve the process and make things better. Taking 5 minutes after the closing to do this will pay many dividends to you in the future.
Stay focused on why you are in this business. Is it to help people? Do you enjoy the daily challenge of earning your own income? What is it that drives you to be successful? What goals do you have? What is your long-term plan?
For me, when I first started out, I was only earning about 10% commission on every loan I closed. That’s right, a measly, 10% on each one! Peanuts, you say??!!! But, I had a plan…and I knew that once I learned the mortgage business from the inside, I could move on to bigger and better things. (Not to mention, fatter commission checks!).
I sacrificed two years of my life to learn the ropes, with the prospect of earning, much, much, more in the future. Isn’t that what people do when they go to college? (I did that too, by the way!).
Remember this, no matter what your current firm is paying you now, there is always another mortgage company out there that will PAY YOU MORE! Do an online search for “mortgage net branch”, and you will find dozens of companies that will double or even triple your current commission check. Good sales people are hard-to-find and are always in demand. If you leave one job, don’t worry. You can easily find another. But, make sure you leave on your own terms--and more importantly--at a time of your choosing.
These are just a few of the things that I have helped me become successful. I know that when I hand a borrower’s file over to Nancy, she will take excellent care of the loan. And because I do my job as a loan officer as thoroughly as I can (by filling out everything on my worksheets), it makes her job that much easier.
As you can see, there are many different ways to become successful in this industry. Believe in yourself and what you are doing; put the customer’s needs first and ask the important questions upfront; and stay focused on what you want to get out of your business. If you only did these three things alone, you’d go far as a loan officer! Now go get ‘em!
Saturday, December 1, 2007
7 Tips For Increasing Your Sales With A Guarantee
People are more likely to buy your product or service if you make their decision as easy as possible
Based on the techniques of hypnosis and Neuro-linguistic Programming, you want them to picture in their mind what it will be like in the future after they have bought it.
It may be difficult for them to do that if there is too much risk involved so your marketing task is to remov the risk.
The way you do that is through some sort of guarantee.
Most potential buyers will be a bit skeptical of buying whatever you sell and a guarantee removes a significant part of their risk.
People want to know that you will "put your money where your mouth is." If you have confidence in your own product or service, this will help your customers feel at ease, leading to more sales.
For this reason, the concept of "risk reversal" is crucial.
If you can't stand behind your offer with a guarantee of some sort, people are likely to purchase from someone who does. So make sure you don't help the competition by missing out this part of your offer.
Some people are too scared to offer a guarantee as they worry that people will take them up on it.
The reality is that some will but, provided you deliver good quality and don't make unjustified claims, you will win more business by having the guarantee than you will lose in this way.
Here are 7 ways you can get the best results from your guarantee.
1. Promote the value of your guarantee: Specify the details as though it is another product that adds value to your offer. Spell it out in plain, simple English. Make sure it is "no questions asked" to help put your customers at ease.
2. Make it personal, if possible: It's useful to help people see that there is a person behind the guarantee. So consider making it a "personal pledge" or a "personal promise" written to the buyer.
3. Longer is better: The longer the guarantee period, the more comfortable the buyer will feel - and longer guarantees typically lead to fewer refunds. In the extreme version, people only pay after they have tried it out to their satisfaction.
4. More is better: A guarantee that offers 'more than your money back' is very appealing. Let your customers keep something even if they decide to return the product. This helps them see the purchase from you as totally risk-free - because you're the one with all the risk.
5. Be creative: Think about what the customer really wants and consider offering guaranteed results rather than offering money-back. For example, a computer repair shop that will fix your machine even if it takes 5 trips back to the shop will really stand out from the crowd. No "or your money back" needed!
6. Make it prompt: When a customer asks for a refund, make sure it is prompt and courteous. Consider them a priority as it's better to refund the money than to have an unsatisfied customer.
7. Work on reducing refunds: Whatever you do, there are always likely to be some people who will ask for refunds. It is a simple fact that customers change their minds or were just looking for something else. Take the chance to get some feedback and see if you need to make changes.
A good guarantee can provide a high level of comfort to your prospective customer that will make it easier for them to see the potential of working with you. So it's well worth making it part of your marketing package.
Based on the techniques of hypnosis and Neuro-linguistic Programming, you want them to picture in their mind what it will be like in the future after they have bought it.
It may be difficult for them to do that if there is too much risk involved so your marketing task is to remov the risk.
The way you do that is through some sort of guarantee.
Most potential buyers will be a bit skeptical of buying whatever you sell and a guarantee removes a significant part of their risk.
People want to know that you will "put your money where your mouth is." If you have confidence in your own product or service, this will help your customers feel at ease, leading to more sales.
For this reason, the concept of "risk reversal" is crucial.
If you can't stand behind your offer with a guarantee of some sort, people are likely to purchase from someone who does. So make sure you don't help the competition by missing out this part of your offer.
Some people are too scared to offer a guarantee as they worry that people will take them up on it.
The reality is that some will but, provided you deliver good quality and don't make unjustified claims, you will win more business by having the guarantee than you will lose in this way.
Here are 7 ways you can get the best results from your guarantee.
1. Promote the value of your guarantee: Specify the details as though it is another product that adds value to your offer. Spell it out in plain, simple English. Make sure it is "no questions asked" to help put your customers at ease.
2. Make it personal, if possible: It's useful to help people see that there is a person behind the guarantee. So consider making it a "personal pledge" or a "personal promise" written to the buyer.
3. Longer is better: The longer the guarantee period, the more comfortable the buyer will feel - and longer guarantees typically lead to fewer refunds. In the extreme version, people only pay after they have tried it out to their satisfaction.
4. More is better: A guarantee that offers 'more than your money back' is very appealing. Let your customers keep something even if they decide to return the product. This helps them see the purchase from you as totally risk-free - because you're the one with all the risk.
5. Be creative: Think about what the customer really wants and consider offering guaranteed results rather than offering money-back. For example, a computer repair shop that will fix your machine even if it takes 5 trips back to the shop will really stand out from the crowd. No "or your money back" needed!
6. Make it prompt: When a customer asks for a refund, make sure it is prompt and courteous. Consider them a priority as it's better to refund the money than to have an unsatisfied customer.
7. Work on reducing refunds: Whatever you do, there are always likely to be some people who will ask for refunds. It is a simple fact that customers change their minds or were just looking for something else. Take the chance to get some feedback and see if you need to make changes.
A good guarantee can provide a high level of comfort to your prospective customer that will make it easier for them to see the potential of working with you. So it's well worth making it part of your marketing package.
Subscribe to:
Posts (Atom)