The meeting is set, and there's a lot at stake. You're going to get one chance to effectively communicate the value of your project to the decision-maker. Take advantage of your opportunity by following these tips:
1. Accept the water
If you’re asked at the beginning of the meeting, “Can I get you a glass of water?” say, “Yes. Thank you.” You should always accept hospitality—it warms up the room and gets things off to a good start.
2. Don’t talk business too soon
Most of the time, before you and the buyer “get down to business,” there’s the chance to make some small talk. You may feel like this is a waste of time, but having some small talk is a crucial opportunity, so don’t miss it.
Remember, business is personal. If you want the other person to listen to what you have to say and to contemplate working with you, it is essential that they like you and enjoy being with you. Therefore, take the time at the beginning of every meeting to build rapport.
3. Access thoughts, feelings and experiences
When you are making small talk, use questions to invite the buyer to reveal thoughts, feelings and personal experiences.
• What are your thoughts on _____?
• How do you feel about _____?
• What’s been your experience with _____?
Questions like these have a way of taking the conversation in a more personal (though still professionally appropriate) direction. This builds rapport quickly and effectively.
4. Identify the top priority
Often, buyers will have many priorities, and they may not be clear about what takes precedence. However, you aren’t likely to succeed unless your pitch addresses the buyer’s top priority.
Try using questions to help the buyer identify what’s most important:
• What’s something that has surprised you about _____?
• What’s your biggest obstacle to getting _____ done?
• If you could, what’s one thing you would change about _____?
• What has to happen first in order for you to _____?
Even if you can assist the buyer in many other ways, you must be able to directly address their highest priority need if you want them to say, “Yes.”
5. Avoid PowerPoint
When you begin to pitch, you want the buyer to be focused on you. After all, you are one of the major selling points of your proposal. You want to be able to see the buyer’s non-verbal communication as you pitch. This is important because it allows you to adapt what you’re saying on the fly, e.g., to explain a little more if you see them getting confused or shift gears if you see them getting bored.
Think about this—what do you do when you’re sitting through someone else’s ten or twenty minute PowerPoint presentation? Do you anticipate each new slide with bated breath? Do you eagerly take notes? Or do you check your email and text messages on your PDA? Do you let your mind wander? Do you try to remember one or two salient details so you can ask one decent question when they finish?
If you must do a PowerPoint presentation (and there are situations where it’s required), my suggestion is to spend only a fraction of the time allotted using PowerPoint. Spend the rest of the time presenting in other ways and answering questions.
You should be the presentation. Let PowerPoint sing back-up.
6. Start with silence
Don't start your presentation until the decision-maker is ready. If there have been a lot of people stopping by, phone calls or other interruptions, ask the buyer if he or she is ready for you to begin. Make eye contact. Then, start slowly and deliver your first line. Pause. Gauge the response. Then proceed with your presentation at a relaxed pace.
Remember, you don’t get a second chance to make a first impression, and the same is true for your idea. Starting with silence cues the buyer to focus his or her attention and allows your first line to land with maximum impact.
7. Craft a dynamite lead-off sentence
You’ve paused for a moment. You have the buyer’s undivided attention. You won’t get a better chance to impress them with the value of what you propose than right now—so your first line better be good.
Effective first lines can be a direct statement of what you propose or what the buyer gets if he or she says “Yes.” It can be a provocative question or statistic that grabs the buyer’s attention. However you begin, your first sentence needs to have impact. Write it, test it out loud and rewrite it—your hard work will pay off.
8. Embrace the Question & Answer (Q&A) part of the meeting
Most people would rather do a comprehensive presentation that answers everything in advance so that there’s no need for questions at the end. This is a big mistake.
An extended pitch prevents the natural give and take characteristic of successful meetings. Worse, it indicates that you may be scared of answering the buyer’s questions. Worse still, if you can’t summarize your overall proposal in less than a couple minutes, the buyer will think that you don’t really know your stuff.
The Q&A is where the sale is made. Yes, you must have an intriguing pitch. But if you want to hear the buyer say “Yes” to your idea, you have to satisfy him or her that when you’re asked the tough questions, you have great answers.
9. Leave with time to spare
You know the benefits of arriving on time, but you may not have considered the benefits of getting out ahead of time. Certainly, you should allow the buyer to dictate when the meeting ends. However, it’s smart to schedule 45 minutes for a 30 minute meeting. That way, when the meeting ends, the buyer feels like they’ve been given a gift. They may even have some time to act on your request.
10. Save a surprise for the end
If possible, you want to have a little something saved up for the very end of the meeting so you can transition out on a good note. Some good techniques are to thank the buyer for a specific, useful contribution he or she made during the meeting, make a callback a personal topic that you discussed at the beginning of the meeting, or leave a polished piece of supporting material. Just like in the movies—a little surprise at the end goes a long way to making a great last impression.
Just for reading to the end, here’s a bonus tip!
11. Choose your moment carefully
Most people will take any opportunity to pitch, network or deliver their elevator speech. But you don’t want to be “most people.”
Casual interactions are great ways to build rapport and get to know other people personally. They are rarely the best environment for you to make a presentation or attempt to sell anyone anything. So if a conversation turns to business, a great move is to say something like, "How about if we just enjoy the party, and I'll follow up with you on Monday?”
Your idea is valuable and you only get one chance to introduce it for the first time. In my experience, the best moment is not in a social setting, but in a place where the buyer is prepared to talk business, has their computer available, and is in a position to act on what you propose.
A key part of being “good in a room” is understanding that your idea should be presented to the right person, at the right time and in the right way.
Thanks so much for reading, and good luck in your next high-stakes meeting!
Tuesday, April 22, 2008
Thursday, April 17, 2008
Do Something About Your Credit. Repair Credit Now
After twelve years of credit repair, credit score repair and writing credit repair letters to all sorts of creditors, collection agencies and credit bureaus, I realized that it was necessary to provide my services at a serious discount to consumers in need. I realized that not all consumers could afford my credit repair services. As a result, I created a hotline to answer credit repair and credit score questions. However, I noticed that it was becoming an overwhelming task for my staff and at much expense in order to provide the free credit repair services.
A little over two (2) years ago, a couple of my clients suggested I should write a booklet (20 pages) about credit score, how credit score is calculated, what to look for when calculating credit score, what is the best way to repair credit and some of the main topics of credit repair. They suggested I should provide this ebook for a price of $9.95. I thought about doing so for some time as I was thinking that 20 pages of credit repair ebook would not be enough to even touch the surface on so many subjects that needed to be covered. You see the entire idea of credit repair (credit score repair) or credit repair letter writing is not a simple task that even 50 pages would be enough. However, it was also bothering me to charge $9.95 for some limited number of pages.
Then I realized, I could sit and think and continue contemplating about writing a credit repair - fix credit summary pages until I turn blue, or if I truly want to help consumers with their credit repair and credit score issues, I must take a step and start now. That was two (2) years ago.
As I was writing, in August 2006, I realized, we’ll have a major problems with the mortgage loans being granted so easily due to the unethical practices of mortgage lenders, brokers and direct lenders. You must understand this point. For the past eleven (11) years, I was directly involved in assisting my clients get loans after their credit repair was reasonably completed and their credit score was around 740 or higher. Initially, I was just fixing credit and let them enjoy the luxury of such good credit score. However, after communicating with my clients a couple of months later, I noticed that they were getting rubbed by “mortgage brokers” and the so called “Direct Lenders” or even the loan servicing companies. It was unjust then and it continued to be unjust now. Since this is a separate issue of its own, that I must share it with you and teaches you what to watch-out for, I am going to create a separate article about Creditors, lenders, mortgage brokers and the “direct lenders.”
Let’s stick with issue regarding credit repair.
Most consumers fall in the trap of over extended credit when banks and credit cards companies offer one card or loan after another. The consumers think the best way to get-out-of debt is borrowing more. In other words, “steal from Pete to pay Paul.” This is one of the major misconception consumers have that puts them in a deeper debt and causes even more problems for them to the point that they have credit collapse (beyond credit crunch). They experience receiving a lot of called from collection agencies, having late payments, collections and charge off entries on their credit files (credit reports) and their credit score goes down to 400 or 500 level.
As I was typing my so-called ebook (according to push my clients given), I noticed that the summary book was expanding to over one hundred pages and I was not even touching half the issues. Then I decided to continue and make the book a “credit repair” book called “Your Credit = Your Life, Fix It Now!” Since August 2006 realization that we will have mortgage problems, my only option was to inform as many people as I could either by emailing or calling, I was not able to reach all consumers. However, “Your Credit = Your Life…” book addressed all issues.
Other misconceptions consumers have, is the fact that some of them think, a credit repair is a quick fix. They think, they can just wave a magic wand and their credit score will go up from 495 to 720 or more. That’s not how it works. A true credit repair or improvement in credit score takes time (several months to a couple of years). Don’t be fooled by what you hear as quick “credit repair fix.”
In order for you to do self credit repair which is the best method, your must follow several steps. Those steps are lengthy and require patience. It requires dedication, willpower and application of your own gradual experiences. For the past several years, I have a sign on my office door so that everyone can clearly see. I also have the quote on my business cards, letterhead, books I wrote and talk about it repeatedly. It says, “more is lost by indecision than by bad decision.”
Think about it for a couple of second and then relate these words to what has transpired in your life thus far. Just as I was contemplating to write 20 pages for an ebook and sell it for $9.95, I was thinking of two things:
a. It is not possible to write just 20 pages,
b. I wouldn’t have the heart to sell a summary book for $9.95.
I lost the track of my own quote. “More was being lost be my indecision…” I wanted to help teach others how to fix credit; I hired a staff teaching them the credit repair concepts, but wasn’t grabbing my keyboard to type what was in my heart and mind. As my clients were pushing me, I was lost in my indecision.
Most consumers do exactly the same as I did for a couple of months. Think with yourself. How many times were you planning to do something and you kept contemplating if you should do what was in your mind or suggested to you? I bet you did that a few times. I bet part of your problem was the same as mine. Where do I start? How do I approach it? What would be my next step? And, a long list of other questions. You know something. Unless you take the first step, you wouldn’t know what the next step is. Unless you set your goal, mind and heart to take an action, it will never happen. You will contemplate and continue in your indecision yet time passes you by and all you do get deeper and deeper in debt, pay more for simple loans, get drowned in debt to a point that you will take your credit or financial anger on your loved ones. ALL BECAUSE YOU DID NOT MAKE YOUR DECISION IN DOING SOMETHING TO TURN YOUR LIFE AROUND.
My dear friend, stop feeling sorry. Here, I am pushing you to do something. Make a decision and do something about it NOW. It is never a bad idea to have a better credit so that you could have a better life and save more money. It took me several months to prepare the book that offers all you need to know about your credit. Believe me, I have seen so many credit reports that yours would not be half as bad as what I’ve seen. There is hope for everyone, especially you. You only become hopeless when you don’t get up, shack off feeling sorry and do something to turn your credit life around.
Please let it be now. Here are a few steps in what you can do.
1. Get copies of your credit reports. You must obtain recent copies for all three (3) credit bureaus. One credit report won’t do. Why? Different creditors and collection agencies report to different credit bureaus. See the book.
2. Compare each entry shown on your credit reports with the account statements you have. Whether it is an open account, closed account, a collection, a charge off or late payment account. You don’t know how many times, I seen credit reports where the consumer did not have any such account and it was creditor or credit bureaus mistakes. Read the book.
3. When you notice inconsistencies (whether it is an account you don’t recognize or misinformation about an account), call creditors and credit bureaus. Discuss, dispute and be persistent.
4. Ask for a conclusion, removal or correction letter.
5. Do NOT settle with collection agencies. If you do or have no other choice, you must do two things, settle for less or don’t pay unless they correct the entry by removing it.
6. Do not trust a collection agent. They do NOT mean well.
There are so many things to talk about and so many techniques to offer. It is impossible to discuss all in this article. So, I ask you to do something useful and quick to improve your credit score, which is as a result of your steps in your credit repair. You don’t know how good it will do for you.
For a complete details of the list above and other topics use the knowledge base provided at www.MasterCreditRepair.net and pick up a copy of the book “Your Credit = Your Life, Fix It now!” I promise, visiting the website will worth every moment and/or penny and spent.
A little over two (2) years ago, a couple of my clients suggested I should write a booklet (20 pages) about credit score, how credit score is calculated, what to look for when calculating credit score, what is the best way to repair credit and some of the main topics of credit repair. They suggested I should provide this ebook for a price of $9.95. I thought about doing so for some time as I was thinking that 20 pages of credit repair ebook would not be enough to even touch the surface on so many subjects that needed to be covered. You see the entire idea of credit repair (credit score repair) or credit repair letter writing is not a simple task that even 50 pages would be enough. However, it was also bothering me to charge $9.95 for some limited number of pages.
Then I realized, I could sit and think and continue contemplating about writing a credit repair - fix credit summary pages until I turn blue, or if I truly want to help consumers with their credit repair and credit score issues, I must take a step and start now. That was two (2) years ago.
As I was writing, in August 2006, I realized, we’ll have a major problems with the mortgage loans being granted so easily due to the unethical practices of mortgage lenders, brokers and direct lenders. You must understand this point. For the past eleven (11) years, I was directly involved in assisting my clients get loans after their credit repair was reasonably completed and their credit score was around 740 or higher. Initially, I was just fixing credit and let them enjoy the luxury of such good credit score. However, after communicating with my clients a couple of months later, I noticed that they were getting rubbed by “mortgage brokers” and the so called “Direct Lenders” or even the loan servicing companies. It was unjust then and it continued to be unjust now. Since this is a separate issue of its own, that I must share it with you and teaches you what to watch-out for, I am going to create a separate article about Creditors, lenders, mortgage brokers and the “direct lenders.”
Let’s stick with issue regarding credit repair.
Most consumers fall in the trap of over extended credit when banks and credit cards companies offer one card or loan after another. The consumers think the best way to get-out-of debt is borrowing more. In other words, “steal from Pete to pay Paul.” This is one of the major misconception consumers have that puts them in a deeper debt and causes even more problems for them to the point that they have credit collapse (beyond credit crunch). They experience receiving a lot of called from collection agencies, having late payments, collections and charge off entries on their credit files (credit reports) and their credit score goes down to 400 or 500 level.
As I was typing my so-called ebook (according to push my clients given), I noticed that the summary book was expanding to over one hundred pages and I was not even touching half the issues. Then I decided to continue and make the book a “credit repair” book called “Your Credit = Your Life, Fix It Now!” Since August 2006 realization that we will have mortgage problems, my only option was to inform as many people as I could either by emailing or calling, I was not able to reach all consumers. However, “Your Credit = Your Life…” book addressed all issues.
Other misconceptions consumers have, is the fact that some of them think, a credit repair is a quick fix. They think, they can just wave a magic wand and their credit score will go up from 495 to 720 or more. That’s not how it works. A true credit repair or improvement in credit score takes time (several months to a couple of years). Don’t be fooled by what you hear as quick “credit repair fix.”
In order for you to do self credit repair which is the best method, your must follow several steps. Those steps are lengthy and require patience. It requires dedication, willpower and application of your own gradual experiences. For the past several years, I have a sign on my office door so that everyone can clearly see. I also have the quote on my business cards, letterhead, books I wrote and talk about it repeatedly. It says, “more is lost by indecision than by bad decision.”
Think about it for a couple of second and then relate these words to what has transpired in your life thus far. Just as I was contemplating to write 20 pages for an ebook and sell it for $9.95, I was thinking of two things:
a. It is not possible to write just 20 pages,
b. I wouldn’t have the heart to sell a summary book for $9.95.
I lost the track of my own quote. “More was being lost be my indecision…” I wanted to help teach others how to fix credit; I hired a staff teaching them the credit repair concepts, but wasn’t grabbing my keyboard to type what was in my heart and mind. As my clients were pushing me, I was lost in my indecision.
Most consumers do exactly the same as I did for a couple of months. Think with yourself. How many times were you planning to do something and you kept contemplating if you should do what was in your mind or suggested to you? I bet you did that a few times. I bet part of your problem was the same as mine. Where do I start? How do I approach it? What would be my next step? And, a long list of other questions. You know something. Unless you take the first step, you wouldn’t know what the next step is. Unless you set your goal, mind and heart to take an action, it will never happen. You will contemplate and continue in your indecision yet time passes you by and all you do get deeper and deeper in debt, pay more for simple loans, get drowned in debt to a point that you will take your credit or financial anger on your loved ones. ALL BECAUSE YOU DID NOT MAKE YOUR DECISION IN DOING SOMETHING TO TURN YOUR LIFE AROUND.
My dear friend, stop feeling sorry. Here, I am pushing you to do something. Make a decision and do something about it NOW. It is never a bad idea to have a better credit so that you could have a better life and save more money. It took me several months to prepare the book that offers all you need to know about your credit. Believe me, I have seen so many credit reports that yours would not be half as bad as what I’ve seen. There is hope for everyone, especially you. You only become hopeless when you don’t get up, shack off feeling sorry and do something to turn your credit life around.
Please let it be now. Here are a few steps in what you can do.
1. Get copies of your credit reports. You must obtain recent copies for all three (3) credit bureaus. One credit report won’t do. Why? Different creditors and collection agencies report to different credit bureaus. See the book.
2. Compare each entry shown on your credit reports with the account statements you have. Whether it is an open account, closed account, a collection, a charge off or late payment account. You don’t know how many times, I seen credit reports where the consumer did not have any such account and it was creditor or credit bureaus mistakes. Read the book.
3. When you notice inconsistencies (whether it is an account you don’t recognize or misinformation about an account), call creditors and credit bureaus. Discuss, dispute and be persistent.
4. Ask for a conclusion, removal or correction letter.
5. Do NOT settle with collection agencies. If you do or have no other choice, you must do two things, settle for less or don’t pay unless they correct the entry by removing it.
6. Do not trust a collection agent. They do NOT mean well.
There are so many things to talk about and so many techniques to offer. It is impossible to discuss all in this article. So, I ask you to do something useful and quick to improve your credit score, which is as a result of your steps in your credit repair. You don’t know how good it will do for you.
For a complete details of the list above and other topics use the knowledge base provided at www.MasterCreditRepair.net and pick up a copy of the book “Your Credit = Your Life, Fix It now!” I promise, visiting the website will worth every moment and/or penny and spent.
Sunday, April 13, 2008
Striving For A Debt Free Life
For many people, living a debt-free life is just a dream. There's no chance that they will be able to reach such a place. The problem with this idea is that it is a failure to understand what it takes to attain a debt-free life. Often, it comes down to a lack of sound strategies for addressing the problem and achieving results. So many Americans are under tremendous debt loads, living literally from paycheck to paycheck. It seems like nothing more than a pipe dream to those who don't have a vision or a goal in mind. With proper planning, living debt-free is very possible. You first have to decide that it is something that you really want and make a commitment to strive for the prize.
The first question you might ask may be, "Where do we begin?" If you want to know how to start your quest for a debt-free life, it helps to have some idea about what not to do. Often the first mistake that people make is to try to do everything at once. They attempt make huge, sweeping changes to their spending and saving habits or just paying down all of their debts in a haphazard fashion. This approach is totally unrealistic when you consider how complex financial debt concerns can be. If you are just starting out, the better way is to take small, incremental steps on the road. Examine your circumstances, determine what sort of planning is required, set goals, and begin to make smaller changes over time. Most importantly, once you decide what you are doing, you need to stick with it and persevere; this is the only way to see results.
As was stated briefly above, establishing goals and completing them is paramount to the goal of living debt-free. Look at your goal setting in terms of a monthly time frame. What sort of goal do you set for this month? Perhaps, it is establishing a budget on what you spend at the grocery store and keeping to it. Maybe, it is about paying a certain amount above the minimum balance on your credit card. Continue to set these types of goals and continue to implement them in the months ahead. Establishing these types of goals will help you to develop better money management skills and possibly discern the differences between good spending and wasteful spending.
Another area that must be dealt with in no uncertain terms involves all of those small, seemingly insignificant expenditures that can add up over time. If you want to achieve a debt-free life, you need to streamline your spending habits. This category of spending includes eating out, catching a movie in the theater, buying an expensive outfit, etc. Decide for yourself that you will make the effort to learn about the virtue of frugality. If you can live cheap, even below your means, you will be able to pay more on that debt load so that you will achieve freedom from the weight of debt that much faster.
It was said earlier, and it should be said again. Resist the temptation to spend needlessly. Keep your goal in mind and keep striving towards it. The best way to get something that you want is to plan for it. Rather than racking up more credit card debt, delay that gratification long enough to save the money and pay for it outright.
It will take work. But, it is very possible to attain a debt-free life. Get started now—and don't give up!
The first question you might ask may be, "Where do we begin?" If you want to know how to start your quest for a debt-free life, it helps to have some idea about what not to do. Often the first mistake that people make is to try to do everything at once. They attempt make huge, sweeping changes to their spending and saving habits or just paying down all of their debts in a haphazard fashion. This approach is totally unrealistic when you consider how complex financial debt concerns can be. If you are just starting out, the better way is to take small, incremental steps on the road. Examine your circumstances, determine what sort of planning is required, set goals, and begin to make smaller changes over time. Most importantly, once you decide what you are doing, you need to stick with it and persevere; this is the only way to see results.
As was stated briefly above, establishing goals and completing them is paramount to the goal of living debt-free. Look at your goal setting in terms of a monthly time frame. What sort of goal do you set for this month? Perhaps, it is establishing a budget on what you spend at the grocery store and keeping to it. Maybe, it is about paying a certain amount above the minimum balance on your credit card. Continue to set these types of goals and continue to implement them in the months ahead. Establishing these types of goals will help you to develop better money management skills and possibly discern the differences between good spending and wasteful spending.
Another area that must be dealt with in no uncertain terms involves all of those small, seemingly insignificant expenditures that can add up over time. If you want to achieve a debt-free life, you need to streamline your spending habits. This category of spending includes eating out, catching a movie in the theater, buying an expensive outfit, etc. Decide for yourself that you will make the effort to learn about the virtue of frugality. If you can live cheap, even below your means, you will be able to pay more on that debt load so that you will achieve freedom from the weight of debt that much faster.
It was said earlier, and it should be said again. Resist the temptation to spend needlessly. Keep your goal in mind and keep striving towards it. The best way to get something that you want is to plan for it. Rather than racking up more credit card debt, delay that gratification long enough to save the money and pay for it outright.
It will take work. But, it is very possible to attain a debt-free life. Get started now—and don't give up!
Thursday, April 10, 2008
Common Online Banking Features
Online banking is a fairly established practice in our internet-saturated world. Many people are making use of the unique and convenient options that online banking services provide. Yet, if you are a bit behind the times, but still considering the idea of upgrading your current banking practices, internet banking may be the right move. But what if you don't know a thing about online banking? Perhaps, you've thought about being hooked up to a bank's web service, but wasn't sure that the service would be worth the trouble. Or, maybe, it was more about not knowing what sorts of banking features you would be able to access.
Now, obviously, one of the most recognized features is accessibility. Online banking offers you, the customer, 24-hour access to you account, barring any designated website downtimes that may be scheduled. Beyond accessibility, you have portability. Most of the time, you can be on any computer anywhere and access your financial account and do your necessary business, at no charge!
To facilitate online use, most banks that offer online banking provide a host of high quality, technological solutions that make your banking experience easy and fast. Most online banking systems offer the same common features, with only a few exceptions, and most of these services are given to customers free of charge.
Some of the common online banking features and services include:
You can view a summary of your account and transaction history
You can view or print your account statements and balances
Set up online payments and direct deposit services
You may be able to reorder checks for your account via the web
Some services allow you to export your account histories to third-party accounting software
You can transfer funds from one account to another or make deposits
Other accounts and services like CDs, IRAs, and others can be managed from the online account
These, again, are but just some of the common features that many online banking services provide their customers. Another category of features very closely associated with online banking is those that deal with information security. These types of features are constantly evolving to deal with the changes in the web and the potential risks that are involved with conducting sensitive financial business on the network.
Information and identity theft are both very unfortunate realities made more serious by the volume of business conducted across the internet every day. People are exchanging personal financial and identity information all the time, and all of this is a part of regular business affairs. With online banking, the need for sound security measures becomes obvious.
Elements of online security features include computer firewall protections, user ID and password authentication combined with code encryption, limitations on number of times that passwords and user names may be entered before they are locked out, measures like TANs (or transaction numbers), and more recently, security tokens, and digital certificates.
The fact remains that online banking is not going anywhere and with the numbers of banks and credit unions offering these types of services, there will be plenty of competition to stimulate the development of new and better features.
Now, obviously, one of the most recognized features is accessibility. Online banking offers you, the customer, 24-hour access to you account, barring any designated website downtimes that may be scheduled. Beyond accessibility, you have portability. Most of the time, you can be on any computer anywhere and access your financial account and do your necessary business, at no charge!
To facilitate online use, most banks that offer online banking provide a host of high quality, technological solutions that make your banking experience easy and fast. Most online banking systems offer the same common features, with only a few exceptions, and most of these services are given to customers free of charge.
Some of the common online banking features and services include:
You can view a summary of your account and transaction history
You can view or print your account statements and balances
Set up online payments and direct deposit services
You may be able to reorder checks for your account via the web
Some services allow you to export your account histories to third-party accounting software
You can transfer funds from one account to another or make deposits
Other accounts and services like CDs, IRAs, and others can be managed from the online account
These, again, are but just some of the common features that many online banking services provide their customers. Another category of features very closely associated with online banking is those that deal with information security. These types of features are constantly evolving to deal with the changes in the web and the potential risks that are involved with conducting sensitive financial business on the network.
Information and identity theft are both very unfortunate realities made more serious by the volume of business conducted across the internet every day. People are exchanging personal financial and identity information all the time, and all of this is a part of regular business affairs. With online banking, the need for sound security measures becomes obvious.
Elements of online security features include computer firewall protections, user ID and password authentication combined with code encryption, limitations on number of times that passwords and user names may be entered before they are locked out, measures like TANs (or transaction numbers), and more recently, security tokens, and digital certificates.
The fact remains that online banking is not going anywhere and with the numbers of banks and credit unions offering these types of services, there will be plenty of competition to stimulate the development of new and better features.
Monday, April 7, 2008
How To Get Mortgage Referrals From Business Networking Groups As A Loan Officer
We all know that referrals are considered the “holy grail” of the mortgage business. They’re an easy sell, and customers are less likely to shop around. But, the reason why most loan originators don’t get a lot of referrals is that they don’t know how to cultivate them. It takes time and an ongoing commitment to building relationships.
If you’re just starting out or don’t have a large base of past customers to draw from, consider joining a business networking group. They’re a great place to mingle with business professionals from other industries, especially if you work from home. And, everyone is there for one reason—to help each other generate referrals. It’s a win-win situation!
Keep in mind that most business groups have strict rules on attendance and meet early (usually between 7-8:00AM) before the day has started. And usually only one person from each profession is allowed to join the group. Unfortunately, there’s only one loan officer position, and I must tell you that these spots go fast and are rarely given up! Ouch! With 30+ people giving you business on an ongoing basis, you can see how powerful this can be!
Here are some business networking organizations to investigate. Call or visit their website to locate a chapter near you. They are:
Business Networking International (BNI)
199 South Monte Vista Avenue
Suite 6
San Dimas, CA 91773
Tel. 1-800-825-8286
http://www.bni.com
Leads Club
P.O. Box 279
Carlsbad, CA 92018
Tel. 1-800-783-3761
http://www.leadsclub.com
Here are two other business organizations to consider. Although, not formally “business networking groups”, both offer a chance to meet other professionals and cultivate relationships. Oftentimes, they have a “breakfast club” which is very similar to the business networking groups mentioned above. Give these two fine organizations a try:
Chamber of Commerce
1615 H Street, NW
Washington, DC 20062
Tel. 1-202-659-6000
http://www.uschamber.com
Rotary International
One Rotary Center
1560 Sherman Avenue
Evanston, IL 60201
Tel. 1-847-866-3000
http://www.rotary.org
One thing to be aware of, is that if the local chapter of the business group you are looking to join is already full, consider starting a chapter of your own. That way, you’ll be guaranteed the open loan officer spot. Believe me, I know, because it was the only way I could get in!
Best of luck in your business.
If you’re just starting out or don’t have a large base of past customers to draw from, consider joining a business networking group. They’re a great place to mingle with business professionals from other industries, especially if you work from home. And, everyone is there for one reason—to help each other generate referrals. It’s a win-win situation!
Keep in mind that most business groups have strict rules on attendance and meet early (usually between 7-8:00AM) before the day has started. And usually only one person from each profession is allowed to join the group. Unfortunately, there’s only one loan officer position, and I must tell you that these spots go fast and are rarely given up! Ouch! With 30+ people giving you business on an ongoing basis, you can see how powerful this can be!
Here are some business networking organizations to investigate. Call or visit their website to locate a chapter near you. They are:
Business Networking International (BNI)
199 South Monte Vista Avenue
Suite 6
San Dimas, CA 91773
Tel. 1-800-825-8286
http://www.bni.com
Leads Club
P.O. Box 279
Carlsbad, CA 92018
Tel. 1-800-783-3761
http://www.leadsclub.com
Here are two other business organizations to consider. Although, not formally “business networking groups”, both offer a chance to meet other professionals and cultivate relationships. Oftentimes, they have a “breakfast club” which is very similar to the business networking groups mentioned above. Give these two fine organizations a try:
Chamber of Commerce
1615 H Street, NW
Washington, DC 20062
Tel. 1-202-659-6000
http://www.uschamber.com
Rotary International
One Rotary Center
1560 Sherman Avenue
Evanston, IL 60201
Tel. 1-847-866-3000
http://www.rotary.org
One thing to be aware of, is that if the local chapter of the business group you are looking to join is already full, consider starting a chapter of your own. That way, you’ll be guaranteed the open loan officer spot. Believe me, I know, because it was the only way I could get in!
Best of luck in your business.
Friday, April 4, 2008
The True Cost Of Economic Freedom
The following story was shared with me recently, it’s been circulating around the net for years and I now share it with you.
In the United States of America lies a large industrial city which is the sight of one of the world's largest slave labor camps.
Located in and around the center of this city are community settlements where the economic slaves live.
Each morning the slaves move in herds like cattle from their small quarters into the slave labor camps. They cram into tiny buses and trains, trend through snow, sleet and inclimate weather. Not because they want to, but because they have to.
Each economic slave is at his or her station by 9:00 AM. Here they report to their master for the day's duties. And here they remain chained until 5:00 PM or even later until they're released to go home.
The slaves have no choice as to how many hours they must labor. Sometimes they are required to work overtime until their master tells them they may leave and go home.
The master can even lie to the economic slave and make up rules and new job duties that weren’t covered before, and the slave has no choice but to adhere to the new rules or risk losing their slave job.
Each year the slaves are told when to take their vacations, for how long, and when they must return. But the master never likes “vacations”, so even though the slave has the time, they rarely use it.
If a family member gets sick and needs help, well the slave can’t be there to help them, they must check-in with the master first. And the master’s answer is never a good one.
Economic slaves have little choice as to how much money they earn as they are paid not what they are worth, but what the job is worth. If they die or can’t do the job anymore, they will quickly be replaced with another slave to fill the position. Soon they will be forgotten and it will be as if they had never even existed in the first place.
If the economic slave’s job becomes obsolete or inefficient, it can easily be replaced with a machine. And machines don’t talk back or need promotions. They do what they’re told.
Slaves are allowed very little time for lunch and coffee breaks during the labor hours. Sometimes they don’t get a break, or are forced to eat lunch at their desk. Sometimes when they are forced to work late, they don’t even get a hot meal, they skip dinner and even go hungry.
The slaves will remain in their chains in great fear because the economic master can punish them with the "firing" or "layoff" whip. And he is not afraid to use it, so the slaves bow to his command. They do whatever he wants.
It is said that even some of the older slaves who have been good and faithful have felt the sting of the whip. They disappear quickly and are never heard from again. Soon, they are forgotten too.
Day by day, year-by-year, the slaves toil and grow older until the master decides it is time to release them to the retirement camps where they're forced to sit idle and wait for death. The master has used them for all he can, and now it is time to move onto another economic slave to fill the position.
It's a well-known fact that the old slaves who try to keep working are sometimes whipped with a "stop-their-pension" whip. They are quickly let-go and without all the benefits they were promised. The slaves waited their whole career for the promise of a pension that never came. The master simply strung them along. He dangled the carrot and the slave bought it.
I know these money slave camps exist for I once was an economic slave. But now I am a free man who lives among the self achievers. I make my own rules. The reason I am free is because I am in business for myself. I am not an economic slave and my only master is myself. I decide my destiny.
Yes, I am truly free. I arise in the morning called for by my schedule.
I decide my own hours. I can even sleep in late while my former economic slave friends are at work.
I can vacation when, where, and for how long I please. If I want to take a day or two off, I can. And no one will complain.
I'm free to take my coffee break and lunch when I decide. I do not have to ask anyone for permission.
And of course, I can decide my own paycheck and how much money I earn, because I am not an economic slave anymore. If I want to earn more, I simply work more.
I can choose to work when, how and where I please. I can even choose the type of clients I work with. And if a customer becomes too unreasonable or demands too much, I can increase my fees or simply “fire” them. I do not have to give my services away. I work for myself.
I'm free to stay in the city for as long as I want, or to move on to greener pastures if I decide to. I choose where I want to live and for how long. I am not trapped by the economic slave master anymore because I do not fear “losing” my job.
I've seen many slaves sadly pack their belongings to leave their city in search of a new master at another company, but it is always the same. The masters tend to lie a lot, but the economic slaves simply believe everything. It isn’t until they’ve been with the master a while that the truth is revealed. But, then it is too late. They are trapped!
There is however, a ray of hope for the lonely economic slave. He or she can “buy” their own freedom.
The cost is not high, yet it seems high to those who do not have the courage to pay the price.
What is the price of true freedom?
ONE MUST BE WILLING TO BE THEIR OWN ECONOMIC MASTER.
In the United States of America lies a large industrial city which is the sight of one of the world's largest slave labor camps.
Located in and around the center of this city are community settlements where the economic slaves live.
Each morning the slaves move in herds like cattle from their small quarters into the slave labor camps. They cram into tiny buses and trains, trend through snow, sleet and inclimate weather. Not because they want to, but because they have to.
Each economic slave is at his or her station by 9:00 AM. Here they report to their master for the day's duties. And here they remain chained until 5:00 PM or even later until they're released to go home.
The slaves have no choice as to how many hours they must labor. Sometimes they are required to work overtime until their master tells them they may leave and go home.
The master can even lie to the economic slave and make up rules and new job duties that weren’t covered before, and the slave has no choice but to adhere to the new rules or risk losing their slave job.
Each year the slaves are told when to take their vacations, for how long, and when they must return. But the master never likes “vacations”, so even though the slave has the time, they rarely use it.
If a family member gets sick and needs help, well the slave can’t be there to help them, they must check-in with the master first. And the master’s answer is never a good one.
Economic slaves have little choice as to how much money they earn as they are paid not what they are worth, but what the job is worth. If they die or can’t do the job anymore, they will quickly be replaced with another slave to fill the position. Soon they will be forgotten and it will be as if they had never even existed in the first place.
If the economic slave’s job becomes obsolete or inefficient, it can easily be replaced with a machine. And machines don’t talk back or need promotions. They do what they’re told.
Slaves are allowed very little time for lunch and coffee breaks during the labor hours. Sometimes they don’t get a break, or are forced to eat lunch at their desk. Sometimes when they are forced to work late, they don’t even get a hot meal, they skip dinner and even go hungry.
The slaves will remain in their chains in great fear because the economic master can punish them with the "firing" or "layoff" whip. And he is not afraid to use it, so the slaves bow to his command. They do whatever he wants.
It is said that even some of the older slaves who have been good and faithful have felt the sting of the whip. They disappear quickly and are never heard from again. Soon, they are forgotten too.
Day by day, year-by-year, the slaves toil and grow older until the master decides it is time to release them to the retirement camps where they're forced to sit idle and wait for death. The master has used them for all he can, and now it is time to move onto another economic slave to fill the position.
It's a well-known fact that the old slaves who try to keep working are sometimes whipped with a "stop-their-pension" whip. They are quickly let-go and without all the benefits they were promised. The slaves waited their whole career for the promise of a pension that never came. The master simply strung them along. He dangled the carrot and the slave bought it.
I know these money slave camps exist for I once was an economic slave. But now I am a free man who lives among the self achievers. I make my own rules. The reason I am free is because I am in business for myself. I am not an economic slave and my only master is myself. I decide my destiny.
Yes, I am truly free. I arise in the morning called for by my schedule.
I decide my own hours. I can even sleep in late while my former economic slave friends are at work.
I can vacation when, where, and for how long I please. If I want to take a day or two off, I can. And no one will complain.
I'm free to take my coffee break and lunch when I decide. I do not have to ask anyone for permission.
And of course, I can decide my own paycheck and how much money I earn, because I am not an economic slave anymore. If I want to earn more, I simply work more.
I can choose to work when, how and where I please. I can even choose the type of clients I work with. And if a customer becomes too unreasonable or demands too much, I can increase my fees or simply “fire” them. I do not have to give my services away. I work for myself.
I'm free to stay in the city for as long as I want, or to move on to greener pastures if I decide to. I choose where I want to live and for how long. I am not trapped by the economic slave master anymore because I do not fear “losing” my job.
I've seen many slaves sadly pack their belongings to leave their city in search of a new master at another company, but it is always the same. The masters tend to lie a lot, but the economic slaves simply believe everything. It isn’t until they’ve been with the master a while that the truth is revealed. But, then it is too late. They are trapped!
There is however, a ray of hope for the lonely economic slave. He or she can “buy” their own freedom.
The cost is not high, yet it seems high to those who do not have the courage to pay the price.
What is the price of true freedom?
ONE MUST BE WILLING TO BE THEIR OWN ECONOMIC MASTER.
Tuesday, April 1, 2008
Expect Hiccups As A Loan Officer On Every Mortgage Loan When Trying To Finance Properties
No matter how successful you are, or how many loans you have closed, you should expect hiccups. No loan every goes as smoothly as you think it will. And with all the third parties involved on any one transaction, you can and WILL have problems.
Here are some of the most common “hiccups”. I thought of about the top 30 I have been hit with.
If you want to get more loans to the table faster and earn more money, I strongly advise you at least have a look at my mortgage system and give it a try.
Hiccups which you may encounter include:
1. The borrower not being clear on what exactly he is “buying”. Or not fully committed.
2. The borrower not being clear on what the loan process entails.
3. Not getting all the proper documentation from the borrower upfront.
4. The borrower’s spouse isn’t fully “sold” on the benefits of the transaction and doesn’t want to go through with it.
5. The borrower is still shopping your “rate”, even though you are well into the process (this is a BIG one!!!!!!).
6. Not getting returned phone calls from the borrower, or even from third parties involved in the transaction (such as appraisers, underwriters, lawyers, etc.)
7. Real estate agents and others who foul-up the process by playing sides, sometimes even making you look like the “bad guy” just to win points!!!!
8. Not being clear about whether or not the customer is escrowing just the taxes, insurance, or both!
9. Not being clear about the amount of money which will be needed to be escrowed per order of the bank.
10. If refinancing, not being clear that the payoff amount will be slightly different than what the borrower’s balance says, (having to deal with pre-paid interest and mortgage payments done in arrears).
11. Finding out about secondary liens on the property or open HELOCS, too late in the process.
12. Borrowers continue to spend, open accounts, and move finances around.
13. Property does not come in appraised high enough.
14. Appraisal comparable properties are too old for the underwriter.
15. Not watching your rate-lock expiration date.
16. Not properly pricing the loan-out in the beginning, and ending-up “eating” most of your profits by trying to “save-face” with the borrower.
17. Repairs or remodeling that are currently being done on the property (underwriters will slam you for this!!!).
18. Finding out about financial skeletons in the borrowers past which weren’t disclosed upfront, such as child support payments, wage garnishments, liens, other open debt (not showing on credit report), etc.
19. Borrower forgets to make mortgage payments or other loan payments during your loan transaction.
20. On purchase transactions, when selling one property and buying another one, first original property is having problems with the sale, thus holding your transaction hostage.
21. Borrowers go on vacation or are not available to sign within the 30-45 day window of the transaction.
22. Not being able to get a booking date with the lender.
23. Underwriter keeps conditioning you for the same things or variations of the same things over and over again.
24. Mortgage payments have accidentally been “double-debted” on the 1003 application, throwing their ratios out of whack.
25. HELOC subordination letter is holding-up the process, secondary lien holder refusing to cooperate.
26. Not submitting proper paperwork to the borrower, bank, or other third party. Not taking a full and complete application at the beginning. Numbers are off, etc. (Small mistakes can have a HUGE impact at the closing table). Always double-check your work before sending it out.
27. Lawyer adds-in extra fees to the HUD at the last minute which the borrower isn’t aware of.
28. Your YSP/commission on the loan is incorrect on the HUD statement. (Once the loan closes you can’t change this!!!! So be very careful!).
29. Final pay-off numbers come in incorrect. Borrower has direct-debiting on his account and a mortgage payment or other loan payment has been made during the loan process. (You need to be aware of this and keep it in mind).
30. Borrowers get lost, change their mind, pull-out, or just simply fail to show-up at the closing. (Just think of all the hard work you put in to get them there. Believe me, it happens!!!!!)
Any one of the above, can make your loan a living nightmare. These are just a few that I have encountered over the years. I’m sure you no doubt will encounter the same. Experience is the best teacher of all. Learning from my experience will save you time, headaches and make you more money.
Don’t risk your $2,000-$3,000 commission check. Invest in my system and get that loan closed!!! You will make back many hundreds of times the cost and even save your sanity! Lol. ;-)
Here are some of the most common “hiccups”. I thought of about the top 30 I have been hit with.
If you want to get more loans to the table faster and earn more money, I strongly advise you at least have a look at my mortgage system and give it a try.
Hiccups which you may encounter include:
1. The borrower not being clear on what exactly he is “buying”. Or not fully committed.
2. The borrower not being clear on what the loan process entails.
3. Not getting all the proper documentation from the borrower upfront.
4. The borrower’s spouse isn’t fully “sold” on the benefits of the transaction and doesn’t want to go through with it.
5. The borrower is still shopping your “rate”, even though you are well into the process (this is a BIG one!!!!!!).
6. Not getting returned phone calls from the borrower, or even from third parties involved in the transaction (such as appraisers, underwriters, lawyers, etc.)
7. Real estate agents and others who foul-up the process by playing sides, sometimes even making you look like the “bad guy” just to win points!!!!
8. Not being clear about whether or not the customer is escrowing just the taxes, insurance, or both!
9. Not being clear about the amount of money which will be needed to be escrowed per order of the bank.
10. If refinancing, not being clear that the payoff amount will be slightly different than what the borrower’s balance says, (having to deal with pre-paid interest and mortgage payments done in arrears).
11. Finding out about secondary liens on the property or open HELOCS, too late in the process.
12. Borrowers continue to spend, open accounts, and move finances around.
13. Property does not come in appraised high enough.
14. Appraisal comparable properties are too old for the underwriter.
15. Not watching your rate-lock expiration date.
16. Not properly pricing the loan-out in the beginning, and ending-up “eating” most of your profits by trying to “save-face” with the borrower.
17. Repairs or remodeling that are currently being done on the property (underwriters will slam you for this!!!).
18. Finding out about financial skeletons in the borrowers past which weren’t disclosed upfront, such as child support payments, wage garnishments, liens, other open debt (not showing on credit report), etc.
19. Borrower forgets to make mortgage payments or other loan payments during your loan transaction.
20. On purchase transactions, when selling one property and buying another one, first original property is having problems with the sale, thus holding your transaction hostage.
21. Borrowers go on vacation or are not available to sign within the 30-45 day window of the transaction.
22. Not being able to get a booking date with the lender.
23. Underwriter keeps conditioning you for the same things or variations of the same things over and over again.
24. Mortgage payments have accidentally been “double-debted” on the 1003 application, throwing their ratios out of whack.
25. HELOC subordination letter is holding-up the process, secondary lien holder refusing to cooperate.
26. Not submitting proper paperwork to the borrower, bank, or other third party. Not taking a full and complete application at the beginning. Numbers are off, etc. (Small mistakes can have a HUGE impact at the closing table). Always double-check your work before sending it out.
27. Lawyer adds-in extra fees to the HUD at the last minute which the borrower isn’t aware of.
28. Your YSP/commission on the loan is incorrect on the HUD statement. (Once the loan closes you can’t change this!!!! So be very careful!).
29. Final pay-off numbers come in incorrect. Borrower has direct-debiting on his account and a mortgage payment or other loan payment has been made during the loan process. (You need to be aware of this and keep it in mind).
30. Borrowers get lost, change their mind, pull-out, or just simply fail to show-up at the closing. (Just think of all the hard work you put in to get them there. Believe me, it happens!!!!!)
Any one of the above, can make your loan a living nightmare. These are just a few that I have encountered over the years. I’m sure you no doubt will encounter the same. Experience is the best teacher of all. Learning from my experience will save you time, headaches and make you more money.
Don’t risk your $2,000-$3,000 commission check. Invest in my system and get that loan closed!!! You will make back many hundreds of times the cost and even save your sanity! Lol. ;-)
Monday, March 31, 2008
How To Survive Outside Your Comfort Zone When Making Sales
Being a salesperson is never easy. To sell effectively, you must to be willing to do things that challenge you. No top producer has ever reached the upper ranks without first moving outside their comfort zone.
Someone recently sent me this poem and I wanted to share it with you. I hope it inspires you to keep challenging yourself and be willing to do whatever it takes to succeed.
No one ever said that sales was easy, but a little bit of inspiration never hurt either!
From one friend to another, here is the poem…
Comfort Zone
(Author Unknown)
I use to have a Comfort Zone
Where I knew I couldn't fail
The same four walls of busy work
Were really more like jail.
I longed so much to do the things
I'd never done before,
But I stayed inside my Comfort Zone
And paced the same old floor
I said it didn't matter,
That I wasn't doing much
I said I didn't care for things
Like diamonds, furs and such
I claimed to be so busy
With the things inside my zone,
But deep inside I longed for
Something special of my own.
I couldn't let my life go by,
Just watching others win.
I held my breath and stepped outside
And let the change begin.
I took a step and with new strength
I'd never felt before,
I kissed my Comfort Zone "goodbye"
And closed and locked the door.
If you are in a Comfort Zone,
Afraid to venture out,
Remember that all winners were
At one time filled with doubt.
A step or two and words of praise,
Can make your dreams come true.
Greet your future with a smile,
Success is there for you!
Someone recently sent me this poem and I wanted to share it with you. I hope it inspires you to keep challenging yourself and be willing to do whatever it takes to succeed.
No one ever said that sales was easy, but a little bit of inspiration never hurt either!
From one friend to another, here is the poem…
Comfort Zone
(Author Unknown)
I use to have a Comfort Zone
Where I knew I couldn't fail
The same four walls of busy work
Were really more like jail.
I longed so much to do the things
I'd never done before,
But I stayed inside my Comfort Zone
And paced the same old floor
I said it didn't matter,
That I wasn't doing much
I said I didn't care for things
Like diamonds, furs and such
I claimed to be so busy
With the things inside my zone,
But deep inside I longed for
Something special of my own.
I couldn't let my life go by,
Just watching others win.
I held my breath and stepped outside
And let the change begin.
I took a step and with new strength
I'd never felt before,
I kissed my Comfort Zone "goodbye"
And closed and locked the door.
If you are in a Comfort Zone,
Afraid to venture out,
Remember that all winners were
At one time filled with doubt.
A step or two and words of praise,
Can make your dreams come true.
Greet your future with a smile,
Success is there for you!
Friday, March 28, 2008
How To Choose A Mortgage Netbranch When Starting Your Own Mortgage Company
In my last article, I covered the two main ways to start your own mortgage company. One way, was to go it completely alone…apply for your own broker’s license, set-up all the relationships with the various lenders, handle all the back office stuff like accounting, compliance, etc. All of this, giving you your independence, but being extremely time consuming.
An easier and more productive way for the loan officer wanting to go on their own, is to join an existing company and operate their own individual “net branch”. It’s where you are working under a head-office, but operating as an individual with all the perks and privileges that go along with independence, but without a lot of the chores and headaches associated with a start-up company. A net branch is simply a way of doing business.
Net branching is a term that is very loosely thrown around the industry, and not every partnership opportunity a company offers is a true “net branch”. Please be careful.
Mortgage companies net branch because it is a way for them to expand their sales force with very little cost or financial risk. Because you are working solely on commission, they don’t have to pay a salary. And, if you don’t produce, you won’t last. Only the strongest will survive. It’s as simple as that!
Companies also already have the structure, compliance, auditing and lender relationships set in place. To add a new salesperson or branch, takes little time and can mean a new on-going revenue source for the firm.
Since the start of the low interest rate boom, companies have recognized that net branching is a smart and viable solution to expansion, especially when adding new states to their lending roster.
Here are the top reasons why loan officers decide to branch-out on their own:
1. They want more commission. They are sick of doing all the work, and getting a measly pay split. They want financial independence.
2. They want more control over their career. They are sick of being micro-managed and controlled by the boss.
3. They want their time back. They have other life obligations and want to spend more time with their family doing the things they enjoy. They are sick of the long hours and late nights.
4. They are emotionally drained and tired of all the office politics. They want to “choose” the people they deal and work with.
5. They are sick of being a robot. They want to fully use all their skills and knowledge and remain challenged in their career. In essence, they want creative and personal freedom.
Here are the advantages of joining a net branch:
1. Better pricing on rates, due to the volume of loans the company as a whole originates. Remember, although you are a single net branch, you have the buying power of thousands of other net branches that are within the company.
2. Greater depth of loan programs. With access to more lenders, you can offer more programs to the consumer and cover virtually any loan scenario.
3. Higher commission payment, usually in the 70% to 80% range, sometimes 90% to almost 100%.
4. Ability to originate loans in multiple states, even all 50! This means more loans for you! Don’t throw those out-of-state leads away!
5. No accounting or compliance headaches to deal with. The head office has these structures already in place. This leaves you more time for selling.
6. More attention from the wholesale account executive. Account reps know that if they are dealing with a large firm, they will get more business. They don’t want to waste their time dealing with the small fries.
7. Ready marketing materials. You do not have to start from scratch and create your own marketing collateral and brochures.
8. Licensing and start-up requirements from the state are significantly less, because there is an operating mortgage firm already underway.
9. You have the resources of the head office, as well as other local net branches. This forms a significant support network, which should not be underestimated.
10. Freedom to make your own schedule and call your own shots. You are in the driver’s seat and if you want to earn more income, simply work harder. No one is holding you back from your career.
11. You can multiply your efforts by hiring loan officers underneath you, and get a cut of THEIR commission as well.
Disadvantages of joining a net branch are:
1. You still must follow the company’s internal rules. You are technically an “employee” of theirs, and at their mercy.
2. Are they really telling you the whole story upfront? Will you be hit with any company surprises down the road?
3. Once you join a net branch you can’t easily jump and join another one.
4. You can’t choose the mortgage company name, you have to use their name. Also their logo, business cards, marketing materials, etc.
5. You may feel isolated by not having an office to go to, as most net branches are operated out of the loan officer’s home. And, if you do choose to rent an office, that’s an expense you must pay for.
6. People may not always be accessible or return phone calls when you have a question.
7. Some net branches have minimum sales requirements, and will fire you if you do not meet their sales goals.
8. Expect to do a lot of the loan processing yourself. After all, you are working solo now. Or, if you don’t want to do processing, expect to hire someone to do the work. Again, another expense.
9. Most net branches don’t offer health benefits. Some say they do, but when you read the fine print, they have 1 or 2 year timeframes you must be with the firm first. Or, they don’t cover all states. Mostly, it’s just the run around. So, make sure you get on your spouse’s health plan before you make the jump. Or shop around for personal health coverage.
Before deciding to join a net branch, here are some personal questions to consider:
1. Are you financially ready? Can you live off your current savings while your new branch is getting set-up? How much are your personal living expenses? What future expenses are likely to come-up?
2. Are there any business start-up costs? What are the fees upfront that must be paid before you can begin? Things like individual state licensing, setting-up a reserve account, office expenses etc. are costs that are borne by the individual loan office NOT the net branch.
3. Do you have a support network in place? Will your family support your efforts in your new business? Who will you turn to when things get rough?
4. Who is your competition? If you are leaving a local firm, mostly likely your former employer will be your fiercest competitor.
5. Did you sign a non-compete clause with your current mortgage firm? Check you’re your attorney. Although, not entirely legal in all states, companies will use this as a way to brow-beat you into submission. You can’t be stopped from earning a living. Don’t let them stop you from your dream.
Remember, going it alone comes with a price; and one which should be carefully considered. There are advantages and disadvantages of starting your own firm. In the end, a net branch is simply a way of doing business. It’s a conduit by which you can originate and close loans. Net branching is a great way to have the freedom and independence of your own mortgage firm, but with significantly less risk.
So, go ahead and give yourself an instant promotion this year. Consider net branching, but look carefully before you leap.
An easier and more productive way for the loan officer wanting to go on their own, is to join an existing company and operate their own individual “net branch”. It’s where you are working under a head-office, but operating as an individual with all the perks and privileges that go along with independence, but without a lot of the chores and headaches associated with a start-up company. A net branch is simply a way of doing business.
Net branching is a term that is very loosely thrown around the industry, and not every partnership opportunity a company offers is a true “net branch”. Please be careful.
Mortgage companies net branch because it is a way for them to expand their sales force with very little cost or financial risk. Because you are working solely on commission, they don’t have to pay a salary. And, if you don’t produce, you won’t last. Only the strongest will survive. It’s as simple as that!
Companies also already have the structure, compliance, auditing and lender relationships set in place. To add a new salesperson or branch, takes little time and can mean a new on-going revenue source for the firm.
Since the start of the low interest rate boom, companies have recognized that net branching is a smart and viable solution to expansion, especially when adding new states to their lending roster.
Here are the top reasons why loan officers decide to branch-out on their own:
1. They want more commission. They are sick of doing all the work, and getting a measly pay split. They want financial independence.
2. They want more control over their career. They are sick of being micro-managed and controlled by the boss.
3. They want their time back. They have other life obligations and want to spend more time with their family doing the things they enjoy. They are sick of the long hours and late nights.
4. They are emotionally drained and tired of all the office politics. They want to “choose” the people they deal and work with.
5. They are sick of being a robot. They want to fully use all their skills and knowledge and remain challenged in their career. In essence, they want creative and personal freedom.
Here are the advantages of joining a net branch:
1. Better pricing on rates, due to the volume of loans the company as a whole originates. Remember, although you are a single net branch, you have the buying power of thousands of other net branches that are within the company.
2. Greater depth of loan programs. With access to more lenders, you can offer more programs to the consumer and cover virtually any loan scenario.
3. Higher commission payment, usually in the 70% to 80% range, sometimes 90% to almost 100%.
4. Ability to originate loans in multiple states, even all 50! This means more loans for you! Don’t throw those out-of-state leads away!
5. No accounting or compliance headaches to deal with. The head office has these structures already in place. This leaves you more time for selling.
6. More attention from the wholesale account executive. Account reps know that if they are dealing with a large firm, they will get more business. They don’t want to waste their time dealing with the small fries.
7. Ready marketing materials. You do not have to start from scratch and create your own marketing collateral and brochures.
8. Licensing and start-up requirements from the state are significantly less, because there is an operating mortgage firm already underway.
9. You have the resources of the head office, as well as other local net branches. This forms a significant support network, which should not be underestimated.
10. Freedom to make your own schedule and call your own shots. You are in the driver’s seat and if you want to earn more income, simply work harder. No one is holding you back from your career.
11. You can multiply your efforts by hiring loan officers underneath you, and get a cut of THEIR commission as well.
Disadvantages of joining a net branch are:
1. You still must follow the company’s internal rules. You are technically an “employee” of theirs, and at their mercy.
2. Are they really telling you the whole story upfront? Will you be hit with any company surprises down the road?
3. Once you join a net branch you can’t easily jump and join another one.
4. You can’t choose the mortgage company name, you have to use their name. Also their logo, business cards, marketing materials, etc.
5. You may feel isolated by not having an office to go to, as most net branches are operated out of the loan officer’s home. And, if you do choose to rent an office, that’s an expense you must pay for.
6. People may not always be accessible or return phone calls when you have a question.
7. Some net branches have minimum sales requirements, and will fire you if you do not meet their sales goals.
8. Expect to do a lot of the loan processing yourself. After all, you are working solo now. Or, if you don’t want to do processing, expect to hire someone to do the work. Again, another expense.
9. Most net branches don’t offer health benefits. Some say they do, but when you read the fine print, they have 1 or 2 year timeframes you must be with the firm first. Or, they don’t cover all states. Mostly, it’s just the run around. So, make sure you get on your spouse’s health plan before you make the jump. Or shop around for personal health coverage.
Before deciding to join a net branch, here are some personal questions to consider:
1. Are you financially ready? Can you live off your current savings while your new branch is getting set-up? How much are your personal living expenses? What future expenses are likely to come-up?
2. Are there any business start-up costs? What are the fees upfront that must be paid before you can begin? Things like individual state licensing, setting-up a reserve account, office expenses etc. are costs that are borne by the individual loan office NOT the net branch.
3. Do you have a support network in place? Will your family support your efforts in your new business? Who will you turn to when things get rough?
4. Who is your competition? If you are leaving a local firm, mostly likely your former employer will be your fiercest competitor.
5. Did you sign a non-compete clause with your current mortgage firm? Check you’re your attorney. Although, not entirely legal in all states, companies will use this as a way to brow-beat you into submission. You can’t be stopped from earning a living. Don’t let them stop you from your dream.
Remember, going it alone comes with a price; and one which should be carefully considered. There are advantages and disadvantages of starting your own firm. In the end, a net branch is simply a way of doing business. It’s a conduit by which you can originate and close loans. Net branching is a great way to have the freedom and independence of your own mortgage firm, but with significantly less risk.
So, go ahead and give yourself an instant promotion this year. Consider net branching, but look carefully before you leap.
Tuesday, March 25, 2008
Be Thankful As A Loan Officer For The Mortgage Industry Shake-Up
I got a call from a loan officer in Lansing, Michigan recently and he called to tell me that he was an avid reader of my newsletter but was giving-up and throwing in the towel. He said he was burnt-out, tired of chasing realtors, and dealing with customers that play games. He had had enough!
When I asked him what lead to his decision, he said that he had only been in the industry for about a year, and had to learn everything himself along the way, but didn’t feel confident in himself because he wasn’t closing many loans. He said that business became a lot tougher and more cut-throat and he just couldn’t compete with everyone else out there. (His wife was all on him too!)
When I asked him why he had gotten into mortgages, he said he did it because he heard that there was “big money to be made” and he figured a couple loans under his belt would be more than he made in a year. He said he always had a passing interest in “real estate” but had never bought or sold a home before and didn’t know much about the finance side of things. He quickly found-out how complex and difficult this business is.
I had little sympathy for him. With chasing “big money” and having absolutely no training whatsoever, it’s no wonder he didn’t succeed. He got into mortgages for the wrong reason—to chase a golden ticket. Not, because he was passionate and wanted to help people.
Yes, this business is difficult, but it’s the easiest job in the world once you know what to do. (We were all new at one point!) No other industry is so step-by-step and logical. On every deal, you know the end result—close the loan. But, how you get there is where the challenge lies, and why people thrive in this business! They love the challenge and the rewards that come every day. It’s exciting!
Over the past few years, mortgage ranks have swollen from 180,000 to over 300,000 people in the industry. That’s a whole lot of people who have only known the golden days of the refi-boom. They know how to be an order-taker not a loan officer.
People who have been around for 10 years or more know what it means to ORIGINATE a loan. It means marketing yourself aggressively, building a reputation and generating a steady stream of referrals. They’ve seen high rates and low rates and they know that this too will pass. In another 8 to 10 years, rates will start to go down again, and they’ll be well prepared to take advantage of the next interest cycle. Veteran producers aren’t giving-up. Neither should you. Decide now if you have the guts and determination to stick-it out. Do you have a passion for what you do?
Be thankful for the shake-up because it means that a whole lot of unskilled loan officers will go the way of the dodo bird and stop ruining the reputation of the industry. And it means a whole lot more business for you!
When I asked him what lead to his decision, he said that he had only been in the industry for about a year, and had to learn everything himself along the way, but didn’t feel confident in himself because he wasn’t closing many loans. He said that business became a lot tougher and more cut-throat and he just couldn’t compete with everyone else out there. (His wife was all on him too!)
When I asked him why he had gotten into mortgages, he said he did it because he heard that there was “big money to be made” and he figured a couple loans under his belt would be more than he made in a year. He said he always had a passing interest in “real estate” but had never bought or sold a home before and didn’t know much about the finance side of things. He quickly found-out how complex and difficult this business is.
I had little sympathy for him. With chasing “big money” and having absolutely no training whatsoever, it’s no wonder he didn’t succeed. He got into mortgages for the wrong reason—to chase a golden ticket. Not, because he was passionate and wanted to help people.
Yes, this business is difficult, but it’s the easiest job in the world once you know what to do. (We were all new at one point!) No other industry is so step-by-step and logical. On every deal, you know the end result—close the loan. But, how you get there is where the challenge lies, and why people thrive in this business! They love the challenge and the rewards that come every day. It’s exciting!
Over the past few years, mortgage ranks have swollen from 180,000 to over 300,000 people in the industry. That’s a whole lot of people who have only known the golden days of the refi-boom. They know how to be an order-taker not a loan officer.
People who have been around for 10 years or more know what it means to ORIGINATE a loan. It means marketing yourself aggressively, building a reputation and generating a steady stream of referrals. They’ve seen high rates and low rates and they know that this too will pass. In another 8 to 10 years, rates will start to go down again, and they’ll be well prepared to take advantage of the next interest cycle. Veteran producers aren’t giving-up. Neither should you. Decide now if you have the guts and determination to stick-it out. Do you have a passion for what you do?
Be thankful for the shake-up because it means that a whole lot of unskilled loan officers will go the way of the dodo bird and stop ruining the reputation of the industry. And it means a whole lot more business for you!
Saturday, March 22, 2008
How To Approach “For Sale” Properties As A Lead Generation Strategy
POSTCARD MARKETING IDEA
“Here is a quick marketing idea you can use immediately to generate new business. Send a postcard to all the new property for sale listings in your area (whether they are on MLS or are FSBO’s from the newspaper).
Often times, the person selling the property hasn't yet lined up financing for the "new" property they are buying. And this is a great way to get new purchase loans lined-up early and fill your pipeline. Realtors have been “double dipping” on commissions for years, selling one house and getting another commission on the new deal. If they can kill two birds with one stone, so can you!
Combine this pro-active postcard technique with your own lead generation site and you’d have a killer combination. Certainly something to consider in this competitive rate environment.”
---------
A got a lot of emails back, asking what to put on the postcards to get attention. Here a few great headlines you can use in your marketing copy.
* Before You Sell Your Home, How Do You Know You Can Afford Your Next One?
* How Soon Do You Want To Close On Your Next Home?
* If You Are Having Trouble Selling Your Home, Wouldn’t It Make Sense To Get Potential Buyers Pre-Qualified First?
* How Much Time Are You Spending With People Who Won’t Buy?
* Can You Afford To Take A Chance That Your Home Won’t Sell In Time?
* Will Your Dream Home Still Be Available By The Time Your Financing Is Set Up?
* How Soon Do You Want To Close On Your Next Home?
* A Little Birdie Told Me You Were Selling Your Home, Do You Know What Your Next Move Will Be?
* If You Don’t Take Control Of Your New Home, Who Will?
Notice, that all of the headlines are leading, asking questions which cause the person to stop and think. Also, never, ever use the words “property” or “house”. You always want to use “home”. It’s powerful. It’s emotional. And it’s where the heart is. ;-)
Postcards are effective because they are inexpensive, short and to the point . Even if they are thrown away, your marketing message is STILL seen. Run this campaign over several months, with several headlines to the same prospects and it will be impossible for them not to notice. Repetition breeds action. And action breeds business.
I would also advise offering a special report or other incentive to increase your response rate. Having a loan pricing website would also help, similar to the one I have at http://www.FindTheLowestRate.com You want something that isn’t a “corporate” image site but rather one which captures the prospect’s information so you can later follow-up with them and convert them into a customer.
Give this low-cost marketing technique a try today and you’ll write more loans this month.
“Here is a quick marketing idea you can use immediately to generate new business. Send a postcard to all the new property for sale listings in your area (whether they are on MLS or are FSBO’s from the newspaper).
Often times, the person selling the property hasn't yet lined up financing for the "new" property they are buying. And this is a great way to get new purchase loans lined-up early and fill your pipeline. Realtors have been “double dipping” on commissions for years, selling one house and getting another commission on the new deal. If they can kill two birds with one stone, so can you!
Combine this pro-active postcard technique with your own lead generation site and you’d have a killer combination. Certainly something to consider in this competitive rate environment.”
---------
A got a lot of emails back, asking what to put on the postcards to get attention. Here a few great headlines you can use in your marketing copy.
* Before You Sell Your Home, How Do You Know You Can Afford Your Next One?
* How Soon Do You Want To Close On Your Next Home?
* If You Are Having Trouble Selling Your Home, Wouldn’t It Make Sense To Get Potential Buyers Pre-Qualified First?
* How Much Time Are You Spending With People Who Won’t Buy?
* Can You Afford To Take A Chance That Your Home Won’t Sell In Time?
* Will Your Dream Home Still Be Available By The Time Your Financing Is Set Up?
* How Soon Do You Want To Close On Your Next Home?
* A Little Birdie Told Me You Were Selling Your Home, Do You Know What Your Next Move Will Be?
* If You Don’t Take Control Of Your New Home, Who Will?
Notice, that all of the headlines are leading, asking questions which cause the person to stop and think. Also, never, ever use the words “property” or “house”. You always want to use “home”. It’s powerful. It’s emotional. And it’s where the heart is. ;-)
Postcards are effective because they are inexpensive, short and to the point . Even if they are thrown away, your marketing message is STILL seen. Run this campaign over several months, with several headlines to the same prospects and it will be impossible for them not to notice. Repetition breeds action. And action breeds business.
I would also advise offering a special report or other incentive to increase your response rate. Having a loan pricing website would also help, similar to the one I have at http://www.FindTheLowestRate.com You want something that isn’t a “corporate” image site but rather one which captures the prospect’s information so you can later follow-up with them and convert them into a customer.
Give this low-cost marketing technique a try today and you’ll write more loans this month.
Wednesday, March 19, 2008
Another Way To Kick People Off Mortgage Rate And Capture Their Business As A Loan Officer
How many times have you answered the phone and heard “What’s your rate?” from a customer? I guarantee it comes-up on every phone call, usually within the first 30 seconds of the conversation. Customers ask it because they don’t know any better. To them you are just like every other loan monkey out there. They don’t care about you, they just care about THEIR interest rate they’re going to get and that’s all that want to know. Anything else you say is in one ear and out the other.
But you the loan officer, don’t care about the rate. Your concern is trying to figure out the customer and seeing what loan program you can get them into. You care about their property type, loan amount, FICO score, etc. Then after all this is said and done, the rate then becomes of INTEREST to you. ;-) But the customer doesn’t care about all that!!! They just want the rate! Now won’t you just give it to them, so they can hang-up and call someone else? You know what will happen…POOOOOFFFF! THEY’RE GONE!
One of the best ways I’ve found to steer a customer off of rate…rate…rate is to ask open-ended questions. No longer am I just asking about the property type and loan amount, but rather asking if they would like to take cash-out of the property, how long they intend to stay there, what their future plans are and so on.
I ask questions other loan officers don’t and it helps me to get in touch with my customers true internal motivation. No longer am I an order taker, the customer now sees me as a helpful friend and trusted advisor. In today’s competitive marketplace, this is truly the best hassle-free way to sell. It really works…works…works!
Here are some open-ended questions you can use to get the customer to open-up to you, creating trust and minimizing the “rate” question:
* What timeframes are we looking at for this loan?
* Do you know what type of program you might be interested in?
* Have you been shopping for a while?
* What kind of property are you buying, tell me a bit more about it? (People love to talk about their new home!!!)
* How long do you intend to stay in the property?
* Have you done any remodeling on the house which may increase it’s value? (Again, this has little to do with the actual loan pricing, but is a great conversation starter and trust builder as Mr. Handyman can tell you about all the wonderful projects he’s done, etc.)
* What are your long term goals and plans?
* Do you know what your credit score is, and what’s on your credit report?
* Haven’t you heard horror stories of people being burned at the closing table?
* Have you considered rolling any other debt into the mortgage in order to lower payments and save money on interest?
* Has anyone ever told you what a true “no closing cost” loan is?
* Has anyone ever explained the loan process to you step-by-step?
* Have you had any problems in getting a loan in the past?
* Is there anyone else involved in the mortgage or is it just yourself?
* How soon would you like to close by?
* And my favorite question, “Have you seen any other rates you liked?” (this tells me if they are a hard-core shopper or not and lets me know what I am up against).
These are just some of the questions to get the customer to tell you their “story” and open-up. (I cover hundreds of questions in my training at http://www.loanclosingsystem.com ). It is important to ask questions that don’t have a firm yes or no answer. The sooner you get people off rate, the more likely you are to capture their business and close their loan. The next time someone calls, try using one or more of my open-ended questions above and you’ll see the difference! The results will amaze you!
But you the loan officer, don’t care about the rate. Your concern is trying to figure out the customer and seeing what loan program you can get them into. You care about their property type, loan amount, FICO score, etc. Then after all this is said and done, the rate then becomes of INTEREST to you. ;-) But the customer doesn’t care about all that!!! They just want the rate! Now won’t you just give it to them, so they can hang-up and call someone else? You know what will happen…POOOOOFFFF! THEY’RE GONE!
One of the best ways I’ve found to steer a customer off of rate…rate…rate is to ask open-ended questions. No longer am I just asking about the property type and loan amount, but rather asking if they would like to take cash-out of the property, how long they intend to stay there, what their future plans are and so on.
I ask questions other loan officers don’t and it helps me to get in touch with my customers true internal motivation. No longer am I an order taker, the customer now sees me as a helpful friend and trusted advisor. In today’s competitive marketplace, this is truly the best hassle-free way to sell. It really works…works…works!
Here are some open-ended questions you can use to get the customer to open-up to you, creating trust and minimizing the “rate” question:
* What timeframes are we looking at for this loan?
* Do you know what type of program you might be interested in?
* Have you been shopping for a while?
* What kind of property are you buying, tell me a bit more about it? (People love to talk about their new home!!!)
* How long do you intend to stay in the property?
* Have you done any remodeling on the house which may increase it’s value? (Again, this has little to do with the actual loan pricing, but is a great conversation starter and trust builder as Mr. Handyman can tell you about all the wonderful projects he’s done, etc.)
* What are your long term goals and plans?
* Do you know what your credit score is, and what’s on your credit report?
* Haven’t you heard horror stories of people being burned at the closing table?
* Have you considered rolling any other debt into the mortgage in order to lower payments and save money on interest?
* Has anyone ever told you what a true “no closing cost” loan is?
* Has anyone ever explained the loan process to you step-by-step?
* Have you had any problems in getting a loan in the past?
* Is there anyone else involved in the mortgage or is it just yourself?
* How soon would you like to close by?
* And my favorite question, “Have you seen any other rates you liked?” (this tells me if they are a hard-core shopper or not and lets me know what I am up against).
These are just some of the questions to get the customer to tell you their “story” and open-up. (I cover hundreds of questions in my training at http://www.loanclosingsystem.com ). It is important to ask questions that don’t have a firm yes or no answer. The sooner you get people off rate, the more likely you are to capture their business and close their loan. The next time someone calls, try using one or more of my open-ended questions above and you’ll see the difference! The results will amaze you!
Sunday, March 16, 2008
How To Create A Lead Generating Mortgage Website In Record Time
You have three choices you have in getting your mortgage site up and running. To recap, they are:
1. Go it alone and design it yourself.
2. Hire a web design firm to custom build a mortgage site for you.
3. Use a ready-made instant website from a design company that specializes just in the mortgage industry.
My suggestion was that your time is far too limited to waste on trying to go it alone, and your money is far too valuable to spend on hiring a web design firm to custom build a site for you. Your best option is number 3, using one of the ready-made instant websites from a company specializing in the mortgage industry.
Here is my list of some of the best firms out there, and ones you should consider before making a decision.
READY-MADE INSTANT MORTGAGE WEBSITE PROVIDERS:
* LoanBright.com
* FireComm.com
* FreeLOWebsites.com
* Avicy.com
* DigitalOrigination.com
* FindTheLowestRate.com
Any of these firms can provide you with a very professional looking site and help you create the company image you are looking for. Although pricing and services vary, be sure to evaluate each to determine the type of features you want your website to have. Things such as an online 1003 application, rate alerts, and newsfeeds can add a tremendous amount of interactivity to your site and get prospects to return again and again (because of the updated information).
One additional website you might want to consider is my FindTheLowestRate.com site. Although it isn’t a “company” oriented site, it’s purpose is solely to help you generate leads. You can learn more at:
http://findthelowestrate.com/leadsite.htm
I always tell my clients that you should have two websites at a minimum, maybe more. One site to create your company image, and one to act as a lead generation source. Of course, your company site will generate leads as well, but having a separate site whose sole purpose is lead generation can put you head and shoulders above all the other “me-too” mortgage firms out there. To attract hard-core rate shoppers and purchase-loan customers, this is an absolute must!
Review all your website options, set a firm goal and make a decision. Only by putting a stake in the ground and beginning where you stand, will you be able to reach your sales goals this year.
1. Go it alone and design it yourself.
2. Hire a web design firm to custom build a mortgage site for you.
3. Use a ready-made instant website from a design company that specializes just in the mortgage industry.
My suggestion was that your time is far too limited to waste on trying to go it alone, and your money is far too valuable to spend on hiring a web design firm to custom build a site for you. Your best option is number 3, using one of the ready-made instant websites from a company specializing in the mortgage industry.
Here is my list of some of the best firms out there, and ones you should consider before making a decision.
READY-MADE INSTANT MORTGAGE WEBSITE PROVIDERS:
* LoanBright.com
* FireComm.com
* FreeLOWebsites.com
* Avicy.com
* DigitalOrigination.com
* FindTheLowestRate.com
Any of these firms can provide you with a very professional looking site and help you create the company image you are looking for. Although pricing and services vary, be sure to evaluate each to determine the type of features you want your website to have. Things such as an online 1003 application, rate alerts, and newsfeeds can add a tremendous amount of interactivity to your site and get prospects to return again and again (because of the updated information).
One additional website you might want to consider is my FindTheLowestRate.com site. Although it isn’t a “company” oriented site, it’s purpose is solely to help you generate leads. You can learn more at:
http://findthelowestrate.com/leadsite.htm
I always tell my clients that you should have two websites at a minimum, maybe more. One site to create your company image, and one to act as a lead generation source. Of course, your company site will generate leads as well, but having a separate site whose sole purpose is lead generation can put you head and shoulders above all the other “me-too” mortgage firms out there. To attract hard-core rate shoppers and purchase-loan customers, this is an absolute must!
Review all your website options, set a firm goal and make a decision. Only by putting a stake in the ground and beginning where you stand, will you be able to reach your sales goals this year.
Thursday, March 13, 2008
An After-Closing Letter That Asks For More Mortgage Referrals
Let your customers know that the best compliment they can give you is a referral.
Here is a sample follow-up letter (I pulled out of my personal files) you can use with customers who have recently closed a loan with you. You’ll see that it congratulates them on completing the process, re-emphasizes the benefits of doing business with you, and asks for referrals.
By acknowledging the customer’s involvement in the loan, and following-up with them even after the loan is completed, you can generate additional business opportunities with very little effort. The difference between mediocre loan officers and top producers is often just going the one extra step to make the customer’s experience exceptional.
SAMPLE FOLLOW-UP LETTER, SENT AFTER LOAN CLOSING
Dear (CUSTOMER),
Congratulations, you’ve successfully completed the mortgage process!
Please find enclosed copies of any loan documents as well as a complimentary copy of your appraisal. You will want to keep these in a safe place for future reference.
With every loan, we strive to make you a “customer for life” through our outstanding service. Every loan experience should be as simple and pain-free as possible and we hope we have exceeded your expectations.
Remember, that as a mortgage broker…
We can help you purchase a new or second home—even an investment property!
We can present you with several loan scenarios that consolidate your debt thereby reducing your monthly cash flow.
We specialize in loans for people even if they have poor or have not so good credit.
We even have loan programs available for people who own their own business and are self-employed.
In closing, let us say that it was an absolute pleasure doing business with you and we look forward to helping you again in the future. Thank you so much for your business and welcome to our family of repeat customers.
Warm Regards,
(YOUR NAME)
Loan Officer (YOUR TITLE)
(YOUR COMPANY CONTACT INFO)
P.S.- We build our business on a referral basis. The highest compliment we could ever receive is a referral from our past friends and customers. Please share your experience with us to others.
Enclosure(s):
(LIST WHAT IS ENCLOSED WITH LETTER, ALWAYS INCLUDE BUSINESS CARDS, REFERRAL POSTCARDS, AND FOLLOW-UP SURVEY).
**** END SAMPLE LETTER ****
Feel free to use and modify the above letter as you see fit. The goal is to make it as personal as possible to fit your customer type and local marketplace. By doing what other people DON’T do, you can set yourself apart from the hundreds of other “me-too” loan officers out there.
Here is a sample follow-up letter (I pulled out of my personal files) you can use with customers who have recently closed a loan with you. You’ll see that it congratulates them on completing the process, re-emphasizes the benefits of doing business with you, and asks for referrals.
By acknowledging the customer’s involvement in the loan, and following-up with them even after the loan is completed, you can generate additional business opportunities with very little effort. The difference between mediocre loan officers and top producers is often just going the one extra step to make the customer’s experience exceptional.
SAMPLE FOLLOW-UP LETTER, SENT AFTER LOAN CLOSING
Dear (CUSTOMER),
Congratulations, you’ve successfully completed the mortgage process!
Please find enclosed copies of any loan documents as well as a complimentary copy of your appraisal. You will want to keep these in a safe place for future reference.
With every loan, we strive to make you a “customer for life” through our outstanding service. Every loan experience should be as simple and pain-free as possible and we hope we have exceeded your expectations.
Remember, that as a mortgage broker…
We can help you purchase a new or second home—even an investment property!
We can present you with several loan scenarios that consolidate your debt thereby reducing your monthly cash flow.
We specialize in loans for people even if they have poor or have not so good credit.
We even have loan programs available for people who own their own business and are self-employed.
In closing, let us say that it was an absolute pleasure doing business with you and we look forward to helping you again in the future. Thank you so much for your business and welcome to our family of repeat customers.
Warm Regards,
(YOUR NAME)
Loan Officer (YOUR TITLE)
(YOUR COMPANY CONTACT INFO)
P.S.- We build our business on a referral basis. The highest compliment we could ever receive is a referral from our past friends and customers. Please share your experience with us to others.
Enclosure(s):
(LIST WHAT IS ENCLOSED WITH LETTER, ALWAYS INCLUDE BUSINESS CARDS, REFERRAL POSTCARDS, AND FOLLOW-UP SURVEY).
**** END SAMPLE LETTER ****
Feel free to use and modify the above letter as you see fit. The goal is to make it as personal as possible to fit your customer type and local marketplace. By doing what other people DON’T do, you can set yourself apart from the hundreds of other “me-too” loan officers out there.
Monday, March 10, 2008
10 Ways To Survive And Prosper In A Down Mortgage Market
Again the Fed raised interest rates. And if you haven’t felt the noose tightening yet, you certaininly will now. With rates continuing their gentle climb and the refinance market now nothing but tumbleweeds, you MUST TAKE IMMEDIATE STEPS NOW if you want to survive in this industry.
Here are 10 immediate action steps you can take now. And, I emphasize the word “ACTION":
1. Give yourself an instant raise. Find a mortgage company that pays a small salary plus commission, or one that has a very high commission structure like many net branch companies do. Again, my recommendations are: Allied Mortgage, Carteret Mortgage, and 1st Metropolitan. They were my top three picks from my past article on mortgage net branching. They pay upwards of 70% or more and even if you only do a few loans a month, you can still make out pretty well. Ask yourself, how much you are earning now?
2. Stop loan fallout. Review all of your current loan procedures and notice at what stage the majority of loans are killed at. Is it during the sales pre-qual phase? Is it during processing? Is it at the closing table? Wherever your loans fallout is where you should focus and scrutinize your efforts. (If you don’t have an organized system in place, you can always use my Sink or Swim Loan Closing System at http://www.loanclosingsystem.com . No matter what, the important thing is to start somewhere and write all your mistakes down. And I’ve done a lot of the work for you!) Remember, if you can save just 1 extra deal per month from dying somewhere during the loan process, that’s an immediate $2,000 to $3,000 extra per month in your pocket. Cha-ching! Another instant pay raise.
3. Focus on purchase money loans. I would give-up on the refinance market unless you are going after sub-prime loans or debt consolidation cash-outs. The interest rates just aren’t there and it won’t make sense for your prospects. The days of 5% on a 30-year fixed are over. Don’t waste your time trying to rework a deal a thousand times. If the numbers don’t add-up, the deal is dead anyway.
4. Become an expert in niche loans. Do you know what an Option ARM loan is? What about the LIBOR index? You should. These 4-payment plan loans are the hottest things out there and are extremely popular! Niche loans you should consider focusing on are: interest only, option arm, regular arms, stated income, no-doc, reverse mortgage, A-minus, Immigrant Visa, and first-time homebuyer programs for specific fields like police officers and teachers. These loans appeal to a specific buyer and the interest rate is always secondary to the end-result. Become the “go-to guy” as an expert in one or more of these specialties and watch the referrals flow-in.
5. Try a new lead source. Where do you currently get your leads from? Have you been tracking their conversion ratio? How many leads resulted in actual closed loans? If you current source isn’t performing, you may want to consider another method of lead generation such as live-transfer calls, attending open houses, or choosing another Internet lead source. You can see how I generate all my own leads myself at http://www.FindTheLowestRate.com . You can too!
6. Don’t forget about HELOCS and second mortgages. These are small but powerful loans that can put immediate cash in your pocket. Surely, you have a base of customers that would like an extra source of credit if needed?! And the best part is, you already have all of their information on file and to close the loan is SIMPLE. Check with your company to make sure they can broker seconds and what the payouts are. I can tell you this, when times are slow, a few small second mortgages goes a long way.
7. Change your sales approach. How do you approach your customers? Are you saying the right thing? Do you fumble for words? Do what I did, write everything down and come up with your own “monkey scripts”. Once I started recording the objectives I would get, I simply wrote them down and came-up with a better response and a way to answer the customers questions. How fast you can overcome objections, will mean the difference between success and failure. You must know what to say if you want to sell!
8. Generate immediate referrals. Go through your ENTIRE customer base. Call every customer and thank them for their business. Give them a courtesy call to see how their mortgage is going and tell them that you would be happy to assist anyone else they may know of who is interested in a mortgage with a free rate quote. Even if it has been 6 months or a year, a personal phone call and a simple thank you works wonders.
9. Get into another part of the mortgage industry. Maybe selling loans isn’t for you. Maybe you need a change. I know many loan officers who get burnt out and move into the processing or underwriting side of the business and become extremely successful. Because they have the sales skills under their belt and have been on the front lines, they can do things that others can’t. Some of the best underwriters I know are former l.o.’s and brokers. Being an underwriter or processor is a more stable salary structure without all the ups and downs.
10. Decide if this is really something you want to do. If you don’t love this business, you shouldn’t be doing it. The mortgage industry isn’t just about money. It’s about helping people. You need to have a hunger and passion to be relentless and never give-up no matter the challenges. Top producers succeed because they love the variety and excitement they encounter. No day is ever the same and that’s why they love it! You should too!
I challenge you to take at least 1 step a day. Don’t wait. Do it now. Just take 1 step today and another tomorrow and you will be well positioned to turn things around. Stop procrastinating. Because if you do nothing, nothing will happen. So do something and even if nothing happens, that’s still something. Get it? ;-)
Here are 10 immediate action steps you can take now. And, I emphasize the word “ACTION":
1. Give yourself an instant raise. Find a mortgage company that pays a small salary plus commission, or one that has a very high commission structure like many net branch companies do. Again, my recommendations are: Allied Mortgage, Carteret Mortgage, and 1st Metropolitan. They were my top three picks from my past article on mortgage net branching. They pay upwards of 70% or more and even if you only do a few loans a month, you can still make out pretty well. Ask yourself, how much you are earning now?
2. Stop loan fallout. Review all of your current loan procedures and notice at what stage the majority of loans are killed at. Is it during the sales pre-qual phase? Is it during processing? Is it at the closing table? Wherever your loans fallout is where you should focus and scrutinize your efforts. (If you don’t have an organized system in place, you can always use my Sink or Swim Loan Closing System at http://www.loanclosingsystem.com . No matter what, the important thing is to start somewhere and write all your mistakes down. And I’ve done a lot of the work for you!) Remember, if you can save just 1 extra deal per month from dying somewhere during the loan process, that’s an immediate $2,000 to $3,000 extra per month in your pocket. Cha-ching! Another instant pay raise.
3. Focus on purchase money loans. I would give-up on the refinance market unless you are going after sub-prime loans or debt consolidation cash-outs. The interest rates just aren’t there and it won’t make sense for your prospects. The days of 5% on a 30-year fixed are over. Don’t waste your time trying to rework a deal a thousand times. If the numbers don’t add-up, the deal is dead anyway.
4. Become an expert in niche loans. Do you know what an Option ARM loan is? What about the LIBOR index? You should. These 4-payment plan loans are the hottest things out there and are extremely popular! Niche loans you should consider focusing on are: interest only, option arm, regular arms, stated income, no-doc, reverse mortgage, A-minus, Immigrant Visa, and first-time homebuyer programs for specific fields like police officers and teachers. These loans appeal to a specific buyer and the interest rate is always secondary to the end-result. Become the “go-to guy” as an expert in one or more of these specialties and watch the referrals flow-in.
5. Try a new lead source. Where do you currently get your leads from? Have you been tracking their conversion ratio? How many leads resulted in actual closed loans? If you current source isn’t performing, you may want to consider another method of lead generation such as live-transfer calls, attending open houses, or choosing another Internet lead source. You can see how I generate all my own leads myself at http://www.FindTheLowestRate.com . You can too!
6. Don’t forget about HELOCS and second mortgages. These are small but powerful loans that can put immediate cash in your pocket. Surely, you have a base of customers that would like an extra source of credit if needed?! And the best part is, you already have all of their information on file and to close the loan is SIMPLE. Check with your company to make sure they can broker seconds and what the payouts are. I can tell you this, when times are slow, a few small second mortgages goes a long way.
7. Change your sales approach. How do you approach your customers? Are you saying the right thing? Do you fumble for words? Do what I did, write everything down and come up with your own “monkey scripts”. Once I started recording the objectives I would get, I simply wrote them down and came-up with a better response and a way to answer the customers questions. How fast you can overcome objections, will mean the difference between success and failure. You must know what to say if you want to sell!
8. Generate immediate referrals. Go through your ENTIRE customer base. Call every customer and thank them for their business. Give them a courtesy call to see how their mortgage is going and tell them that you would be happy to assist anyone else they may know of who is interested in a mortgage with a free rate quote. Even if it has been 6 months or a year, a personal phone call and a simple thank you works wonders.
9. Get into another part of the mortgage industry. Maybe selling loans isn’t for you. Maybe you need a change. I know many loan officers who get burnt out and move into the processing or underwriting side of the business and become extremely successful. Because they have the sales skills under their belt and have been on the front lines, they can do things that others can’t. Some of the best underwriters I know are former l.o.’s and brokers. Being an underwriter or processor is a more stable salary structure without all the ups and downs.
10. Decide if this is really something you want to do. If you don’t love this business, you shouldn’t be doing it. The mortgage industry isn’t just about money. It’s about helping people. You need to have a hunger and passion to be relentless and never give-up no matter the challenges. Top producers succeed because they love the variety and excitement they encounter. No day is ever the same and that’s why they love it! You should too!
I challenge you to take at least 1 step a day. Don’t wait. Do it now. Just take 1 step today and another tomorrow and you will be well positioned to turn things around. Stop procrastinating. Because if you do nothing, nothing will happen. So do something and even if nothing happens, that’s still something. Get it? ;-)
Friday, March 7, 2008
How To Get Mortgage Clients To Stop Dragging Their Feet When Shopping For A Home Loan
At one time, borrower procrastination wasn’t a common problem, but has now become one, as more and more people got into the mortgage industry. Many of them were bad apples, incompetent or worse. Bad experiences and bad memories are what you are competing with.
For some customers, rate shopping is a game. No matter how hard you try, they will never go with you. They just want to see how low a rate you could get them. It may be that they aren’t procrastinating, but rather are just putting you off, because they decided to go with someone else. Anything they say such as “hassle”, “it’s not worth it”, etc. may be just a cover.
On the other hand, if the deal you give the customer isn’t meaty enough for them, (meaning that they aren’t going to save a significant amount), some customers will simply throw up their hands in frustration. These are the ones that have gotten burnt before in the process, leaving a sour taste in their mouth. For them, it’s just not worth it.
Provided your mortgage deal makes sense and is in the best interest of the customer, here are a few ways I’ve learned to get clients to stop dragging their feet.
1. Explain the entire process in full. Show them how simple it is and that you will take care of all the necessary paperwork. They merely have to follow your lead. Although, getting a mortgage is a long and tedious process, you have to prove your case and demonstrate that your firm is different from the rest. Despite what the customer has experienced in the past, you aren’t like other loan officers.
2. Create a compelling reason to act. How much will they save per month? How much in interest will they save over the life of the loan? Demonstrate the financial incentive to them in black and white.
3. Translate the financial numbers into a real-life perspective that clients can understand. People need to be able to rationalize things. How many nights-out is this? How much extra “fun” money will they have? Whatever the client is into, put the financial motive into a physical, tangible one. When people think about things that way, money becomes all the more real.
4. Let them know that there will be “pain” if they don’t act. The opportunity won’t last forever, and their reluctance to act will cost them in the long run. Are the interest rates rising? Is there something about their situation that will affect their ability to refinance in the future? Are they looking for cash out, and if so, can the pain of their debts/bills be used to motivate them?
5. If the customer doesn’t listen to reason, and still won’t act, they may have paralysis by analysis. I call these the “engineer types”, as they want to nit pick every part of the process and will shop forever, always looking for a better deal. My advice—give up on these loans. They will cause you more trouble than they’re worth.
For some customers, rate shopping is a game. No matter how hard you try, they will never go with you. They just want to see how low a rate you could get them. It may be that they aren’t procrastinating, but rather are just putting you off, because they decided to go with someone else. Anything they say such as “hassle”, “it’s not worth it”, etc. may be just a cover.
On the other hand, if the deal you give the customer isn’t meaty enough for them, (meaning that they aren’t going to save a significant amount), some customers will simply throw up their hands in frustration. These are the ones that have gotten burnt before in the process, leaving a sour taste in their mouth. For them, it’s just not worth it.
Provided your mortgage deal makes sense and is in the best interest of the customer, here are a few ways I’ve learned to get clients to stop dragging their feet.
1. Explain the entire process in full. Show them how simple it is and that you will take care of all the necessary paperwork. They merely have to follow your lead. Although, getting a mortgage is a long and tedious process, you have to prove your case and demonstrate that your firm is different from the rest. Despite what the customer has experienced in the past, you aren’t like other loan officers.
2. Create a compelling reason to act. How much will they save per month? How much in interest will they save over the life of the loan? Demonstrate the financial incentive to them in black and white.
3. Translate the financial numbers into a real-life perspective that clients can understand. People need to be able to rationalize things. How many nights-out is this? How much extra “fun” money will they have? Whatever the client is into, put the financial motive into a physical, tangible one. When people think about things that way, money becomes all the more real.
4. Let them know that there will be “pain” if they don’t act. The opportunity won’t last forever, and their reluctance to act will cost them in the long run. Are the interest rates rising? Is there something about their situation that will affect their ability to refinance in the future? Are they looking for cash out, and if so, can the pain of their debts/bills be used to motivate them?
5. If the customer doesn’t listen to reason, and still won’t act, they may have paralysis by analysis. I call these the “engineer types”, as they want to nit pick every part of the process and will shop forever, always looking for a better deal. My advice—give up on these loans. They will cause you more trouble than they’re worth.
Tuesday, March 4, 2008
How To Find “For Sale By Owner Properties” FSBO’s In Your Area To Market And Sell To
For sale by owner properties, or FSBO’s as they are commonly refereed, are some of the best places to look for new clients. If done correctly, they can provide a steady stream of interested and motivated new home purchasers. And at very little cost.
As a loan officer, your goal is to become the mortgage source that the FSBO seller will refer interested home buyers to, to get pre-qualified. And don’t forget that the FSBO seller may be looking for a new property as well—and with that a new loan. If you work the arrangement properly, you can get loans coming from both ways.
Here are some of the best places to locate FSBO’s in your area:
* The real estate classified section of your local newspaper.
* The Want Advertiser Magazine, and other small local buy/sell classified ad magazines. To give you a sense, a similar magazine is the Auto Trader, but there are ones out there that deal specifically with items and property.
* Drive around the neighborhoods you know are hot markets.
* Ask real estate referral partners such as realtors (they look for FSBO’s too, so may have seen one), appraisers (most FSBO’s will an appraisal report to justify a price), real estate attorneys (FSBO’s need contract work done), and others.
* Real estate section on ebay. A great resource!
* Warnock’s By Owner, an alerting service for real estate and mortgage professionals that tracks FSBO’s all over the country. You can visit their site at http://www.wbyowner.com
* Other FSBO sites to look at: http://www.fsbo.com, http://www.virtualfsbo.com, http://www.isoldmyhouse.com, http://www.salebyownerrealty.com, http://www.fsbonetwork.com, http://www.fsbo.net.
The most important thing to remember when dealing with FSBO’s is to identify to the prospect that you are NOT a real estate agent. You are there to help them weed out the unqualified prospects and save them time, money, and aggravation. These are the hot- buttons that will get your foot in the door, and a sale in your pocket.
In our next installment, we’ll look at how to best approach a FSBO prospect.
As a loan officer, your goal is to become the mortgage source that the FSBO seller will refer interested home buyers to, to get pre-qualified. And don’t forget that the FSBO seller may be looking for a new property as well—and with that a new loan. If you work the arrangement properly, you can get loans coming from both ways.
Here are some of the best places to locate FSBO’s in your area:
* The real estate classified section of your local newspaper.
* The Want Advertiser Magazine, and other small local buy/sell classified ad magazines. To give you a sense, a similar magazine is the Auto Trader, but there are ones out there that deal specifically with items and property.
* Drive around the neighborhoods you know are hot markets.
* Ask real estate referral partners such as realtors (they look for FSBO’s too, so may have seen one), appraisers (most FSBO’s will an appraisal report to justify a price), real estate attorneys (FSBO’s need contract work done), and others.
* Real estate section on ebay. A great resource!
* Warnock’s By Owner, an alerting service for real estate and mortgage professionals that tracks FSBO’s all over the country. You can visit their site at http://www.wbyowner.com
* Other FSBO sites to look at: http://www.fsbo.com, http://www.virtualfsbo.com, http://www.isoldmyhouse.com, http://www.salebyownerrealty.com, http://www.fsbonetwork.com, http://www.fsbo.net.
The most important thing to remember when dealing with FSBO’s is to identify to the prospect that you are NOT a real estate agent. You are there to help them weed out the unqualified prospects and save them time, money, and aggravation. These are the hot- buttons that will get your foot in the door, and a sale in your pocket.
In our next installment, we’ll look at how to best approach a FSBO prospect.
Saturday, March 1, 2008
How To Deal With Pushy Wholesale Account Representatives In The Mortgage Industry When You Are A Loan Officer
As a mortgage broker, one of your main advantages is that you have access to many different lenders and hundreds of loan programs, which you can offer your customers. Having too many lenders to deal with--however--can become one of your biggest problems.
As the person between the borrower and the bank, you’re responsible for dealing with the myriad of third parties involved in the transaction. You’re dealing with appraisers, title companies, attorneys, underwriting, wholesalers, etc. You’ve already got a lot on your plate, so adding more “things” or “people” for you to deal with in your office, isn’t going to help you get any more loans closed. You want to simply your business and your life.
How many times have you been bombarded with rate sheets, special pricing offers, free donuts, luncheons, etc. from wholesalers? How much time did these people cost you? Did they help you close any of your “difficult” loans? Did anything come of it? Are they bringing anything of value to the relationship? These are questions to consider before letting another lender’s rep into your office. They can suck-up all your time, and leave you with nothing to show for it. Don’t go down a road to nowhere and let this happen to you.
Here are some of my top tips for dealing with pushy wholesale account representatives:
* Realize that there are some stellar wholesalers out there. They aren’t all bad. Some will go the extra mile for you and fight your case to the underwriter on difficult loans. Unfortunately, you won’t find this out until you are deep into the loan process, and after your relationship has progressed to a respectable working level. Until it gets to that point, it is impossible to differentiate one wholesaler from another.
* Never deal with an account representative that is new to the lender, or has only been in the mortgage business a short time. You’ll end-up having to “train” them, and they won’t have much value to bring to the table. They also tend to be the ones who call all the time begging for a loan, because they don’t have many clients to service. To get the best rates, and highest level of service, demand someone with at least 2 years of experience, preferably more, with a particular lender.
* Don’t allow yourself to be stuffed onto the wholesalers marketing lists. Your fax machine and email with be overflowing with gimmicky sales pitches and mortgage hyperbole.
* Never allow a wholesaler into the office, without first speaking to them IN-DEPTH over the phone about their loan programs. They will try to schedule an appointment to come see you, but why spend an hour or two in a meeting, if their programs and rates aren’t competitive?
* Ask for a sample rate sheet upfront, so you can see what their rates are. Better yet, get their program and underwriting guidelines so you can judge how “strict” the underwriters will be. Even if their rates are low, can you still get the deal closed?
* If you are a new broker, and don’t have many lenders, try not to go overboard and sign-up with everyone. Believe me, you’ll be overwhelmed with phone calls, and only have so many loans to go around. Not every wholesaler you sign-up with get a loan from you. They should know this upfront.
* Wholesalers can be a valuable resource into the rest of the industry. They all know each other and are great for getting the inside scoop on the other local mortgage companies as they make their rounds. They also have a lot of connections with lenders and should know how their programs stack up to others.
* When a wholesaler calls and starts in on his sales pitch. Say, “Why should I do business with you?” “What will you offer me, other than low rates?”. A low interest rate is not enough, these days you also need a high degree of service to get the deal closed. I’ve seen many deals fall through not because the rate wasn’t low enough, but because the account representative sat on his hands. Is this guy going to go to bat for you? Ask him.
* Focus on working with a handful of lenders, and send them the majority of your business. You should have 5 to 10 A-Credit lenders, and know their programs inside and out. B-Credit is more complicated, so you’ll need between 10 to 15 for shopping purposes. By narrowing your field of lenders, you’ll get to know the account reps better and can deepen relationship. They will become more like a partner and an extension of your mortgage office. But, remember to choose wisely because your loan rests in their hands.
These are some of the policies I follow in my office and teach my students. The mortgage business is full of people who are all acting in their own business interests. Remember, the wholesaler’s job is to bring in loans from mortgage brokers. They are selling to you, as much as you are selling the loan to the end-borrower. Use them as a valuable and trusted resource, but don’t fall into the trap of being distracted by an endless array of programs and rates.
Follow these tips, and your business will be much more focused and on track.
As the person between the borrower and the bank, you’re responsible for dealing with the myriad of third parties involved in the transaction. You’re dealing with appraisers, title companies, attorneys, underwriting, wholesalers, etc. You’ve already got a lot on your plate, so adding more “things” or “people” for you to deal with in your office, isn’t going to help you get any more loans closed. You want to simply your business and your life.
How many times have you been bombarded with rate sheets, special pricing offers, free donuts, luncheons, etc. from wholesalers? How much time did these people cost you? Did they help you close any of your “difficult” loans? Did anything come of it? Are they bringing anything of value to the relationship? These are questions to consider before letting another lender’s rep into your office. They can suck-up all your time, and leave you with nothing to show for it. Don’t go down a road to nowhere and let this happen to you.
Here are some of my top tips for dealing with pushy wholesale account representatives:
* Realize that there are some stellar wholesalers out there. They aren’t all bad. Some will go the extra mile for you and fight your case to the underwriter on difficult loans. Unfortunately, you won’t find this out until you are deep into the loan process, and after your relationship has progressed to a respectable working level. Until it gets to that point, it is impossible to differentiate one wholesaler from another.
* Never deal with an account representative that is new to the lender, or has only been in the mortgage business a short time. You’ll end-up having to “train” them, and they won’t have much value to bring to the table. They also tend to be the ones who call all the time begging for a loan, because they don’t have many clients to service. To get the best rates, and highest level of service, demand someone with at least 2 years of experience, preferably more, with a particular lender.
* Don’t allow yourself to be stuffed onto the wholesalers marketing lists. Your fax machine and email with be overflowing with gimmicky sales pitches and mortgage hyperbole.
* Never allow a wholesaler into the office, without first speaking to them IN-DEPTH over the phone about their loan programs. They will try to schedule an appointment to come see you, but why spend an hour or two in a meeting, if their programs and rates aren’t competitive?
* Ask for a sample rate sheet upfront, so you can see what their rates are. Better yet, get their program and underwriting guidelines so you can judge how “strict” the underwriters will be. Even if their rates are low, can you still get the deal closed?
* If you are a new broker, and don’t have many lenders, try not to go overboard and sign-up with everyone. Believe me, you’ll be overwhelmed with phone calls, and only have so many loans to go around. Not every wholesaler you sign-up with get a loan from you. They should know this upfront.
* Wholesalers can be a valuable resource into the rest of the industry. They all know each other and are great for getting the inside scoop on the other local mortgage companies as they make their rounds. They also have a lot of connections with lenders and should know how their programs stack up to others.
* When a wholesaler calls and starts in on his sales pitch. Say, “Why should I do business with you?” “What will you offer me, other than low rates?”. A low interest rate is not enough, these days you also need a high degree of service to get the deal closed. I’ve seen many deals fall through not because the rate wasn’t low enough, but because the account representative sat on his hands. Is this guy going to go to bat for you? Ask him.
* Focus on working with a handful of lenders, and send them the majority of your business. You should have 5 to 10 A-Credit lenders, and know their programs inside and out. B-Credit is more complicated, so you’ll need between 10 to 15 for shopping purposes. By narrowing your field of lenders, you’ll get to know the account reps better and can deepen relationship. They will become more like a partner and an extension of your mortgage office. But, remember to choose wisely because your loan rests in their hands.
These are some of the policies I follow in my office and teach my students. The mortgage business is full of people who are all acting in their own business interests. Remember, the wholesaler’s job is to bring in loans from mortgage brokers. They are selling to you, as much as you are selling the loan to the end-borrower. Use them as a valuable and trusted resource, but don’t fall into the trap of being distracted by an endless array of programs and rates.
Follow these tips, and your business will be much more focused and on track.
Thursday, February 28, 2008
How To Best Approach A “For Sale By Owner” FSBO Prospect As A Loan Officer
FSBO’s are a great source of new customers for you, and are an often overlooked demographic. Put yourself in their shoes. (If you’ve ever tried to sell property yourself, you know what I mean).
FSBO’s are:
* An un-tapped resource that many loan officers don’t even know about.
* Do-it-yourself types that are independent minded.
* Fairly knowledgeable about real estate (or at least they think they are!)
* Skeptical of outsiders, because they think you may be a real estate agent, trying to get a commission on their house. (Once you show them you can help them, and for FREE, their resistance melts away).
* Most of all, FSBO’s are looking to save money on real estate commissions, usually 6% of the selling price. On a $400,000 house, this is $24,000 out of their pocket!
FSBO’s need:
* An outside opinion on the real estate market.
* An estimate of the approximate value of their property.
* Marketing materials to help them sell their house.
* Someone they can ask questions of, and someone who can act a trusted advisor to them during the process.
* A way to weed-out all the tire kickers and time wasters that want to view the house, but who are NOT qualified to make a buying-decision (because they don’t have financing set-up).
* New financing set-up for the new property they will be buying, from the proceeds of the sale of their home.
As a loan officer you can provide all of this to the FSBO prospect and more. You’ll not only save them time and money, but a lot of heartache as well. And in return, the FSBO, will provide you with a steady stream of interested buyers who are looking to purchase a home.
And remember, even if the buying prospect doesn’t purchase the FSBO home you are dealing with—you still win! You STILL get a prospect who needs financing arranged and is readily looking for a property. It’s a perfect match—and everybody wins!
You’ll want to keep the above points in mind when you make your approach to the FSBO client. These are the hot-button points to make when speaking to them. I usually advise sending a letter first, followed by a phone call.
If you aren’t already considering FSBO’s into your business plan, you’re missing a huge opportunity and a virtually untapped market. Yes, it takes a bit of effort on your part. But a little bit of time invested upfront, can pay huge dividends down the road. You’ve got nothing to lose, so give it a try!
FSBO’s are:
* An un-tapped resource that many loan officers don’t even know about.
* Do-it-yourself types that are independent minded.
* Fairly knowledgeable about real estate (or at least they think they are!)
* Skeptical of outsiders, because they think you may be a real estate agent, trying to get a commission on their house. (Once you show them you can help them, and for FREE, their resistance melts away).
* Most of all, FSBO’s are looking to save money on real estate commissions, usually 6% of the selling price. On a $400,000 house, this is $24,000 out of their pocket!
FSBO’s need:
* An outside opinion on the real estate market.
* An estimate of the approximate value of their property.
* Marketing materials to help them sell their house.
* Someone they can ask questions of, and someone who can act a trusted advisor to them during the process.
* A way to weed-out all the tire kickers and time wasters that want to view the house, but who are NOT qualified to make a buying-decision (because they don’t have financing set-up).
* New financing set-up for the new property they will be buying, from the proceeds of the sale of their home.
As a loan officer you can provide all of this to the FSBO prospect and more. You’ll not only save them time and money, but a lot of heartache as well. And in return, the FSBO, will provide you with a steady stream of interested buyers who are looking to purchase a home.
And remember, even if the buying prospect doesn’t purchase the FSBO home you are dealing with—you still win! You STILL get a prospect who needs financing arranged and is readily looking for a property. It’s a perfect match—and everybody wins!
You’ll want to keep the above points in mind when you make your approach to the FSBO client. These are the hot-button points to make when speaking to them. I usually advise sending a letter first, followed by a phone call.
If you aren’t already considering FSBO’s into your business plan, you’re missing a huge opportunity and a virtually untapped market. Yes, it takes a bit of effort on your part. But a little bit of time invested upfront, can pay huge dividends down the road. You’ve got nothing to lose, so give it a try!
Monday, February 25, 2008
How To Approach Internet Mortgage Leads As A Loan Officer
One question I get asked a lot is “How do I approach Internet mortgage leads?” As you may already know, I generate 90% of my business directly from these types of leads and have found them a great resource for several reasons:
* When you call people, they are ready to buy.
* People will take your calls and even return your messages, because they actually inputted the lead and it is not a cold call.
* You can begin pricing the loan out before you make the call because much of their information is contained on the lead already.
* Online leads exist for all loan types: refinance, purchase, and sub-prime loans.
Keep in mind that there are several drawbacks to these types of leads as well:
* If you buy from an unscrupulous lead provider, the Internet leads may be old, outdated, or have been resold several times to multiple brokers. (Always look for a money-back guarantee and invest as little as possible upfront, so you can “test” the lead company out).
* The customer probably put their Internet inquiry on other websites too, so many other brokers will be calling too. So you have to have your sales pitch down and effectively close the sale. Be forewarned, Internet shoppers are rate shoppers until the end, so close the loan quickly and get payment upfront!
* Be prepared to deal with competing, uneducated, low-life, lying loan officers who will say anything to get the sale.
With that said, here’s how I approach my Internet mortgage leads and why I have had such an excellent success rate:
1. I always start by calling the lead as soon as I receive it. I want the customer to hear me first and remember who I am.
2. I never throw a lead away. Until I get a firm, vocal, “no” from a live person on the phone, I will keep on calling and leaving my “teaser” rate message (see below). Eventually, the customer will call you back and tell you that they are “interested” or “all set”.
3. I never send emails out to people who requested information through the lead. They will never write back, and if they do, they will refuse to speak with you and waste your time.
4. Customers will try to commoditize loan officers down to just rate, and I refuse to be pigeon-holed and boiled down to the lowest common denominator. As we all know, simply the lowest rate may not be there best option. I want to talk to a live person and uncover exactly what they want to accomplish through the loan.
5. Always try to get the customer at work first. They will be more polite to talk to, and will take the time to listen to what you have to say. If not at work, then call their home or cell number.
6. If you call them at home, and a spouse or partner answers, try to get as much information as you can about what they are looking to do. You do not have to actually talk to the person on the lead to get the information you are looking for. (I simply fill-out one of my mortgage pre-qual worksheets from my Sink or Swim Loan Closing System, and don’t bother to waste time by taking a full-application this early in the process. I want to get a handle on the loan first).
7. Try not to leave a message on their voicemail or answering machine the first few times you call. You want to speak to a real person. If you have to leave a message, use my special “teaser” message. This always gets people to call me back and has been very effective: “Hi (prospect’s name). This is (your name) from (your company) We had you on our interest rate watch list and I just wanted to call and let you know that there has been a change in the market. Please call me at (leave your number), so I can update you on the rates. I should be here until about 6:30 PM. I’m waiting to hear back from a couple of other investors, so I’ll keep looking for a better deal for you. Once again, this is (your name) from (your company). Please call me as soon as you can at (leave your number again). Hope to speak to you soon.”
8. Once you have spoken to the customer and gathered the necessary information, close the conversation by saying that you will email them a proposal with interest rates and several loan scenarios. Never, never, never, say what the rate is over the phone. You want the customer to be expecting your proposal. This gets them to actually read it.
9. Call to confirm that they have actually received the proposal and go over it with them. This will give you something to talk about and is a good reason to call them back, without seeming like a “bother”. It also helps to establish trust and make the prospect feel more comfortable, especially since they are doing business entirely over the phone.
10. Answer as many questions as you can and explain how simple and easy the entire loan process will be with you. Try to add as much value as you can while you close the sale.
There are many different ways to approach leads. I have tried to systemize the process as much as possible in order to be successful. Hope these tips help!
* When you call people, they are ready to buy.
* People will take your calls and even return your messages, because they actually inputted the lead and it is not a cold call.
* You can begin pricing the loan out before you make the call because much of their information is contained on the lead already.
* Online leads exist for all loan types: refinance, purchase, and sub-prime loans.
Keep in mind that there are several drawbacks to these types of leads as well:
* If you buy from an unscrupulous lead provider, the Internet leads may be old, outdated, or have been resold several times to multiple brokers. (Always look for a money-back guarantee and invest as little as possible upfront, so you can “test” the lead company out).
* The customer probably put their Internet inquiry on other websites too, so many other brokers will be calling too. So you have to have your sales pitch down and effectively close the sale. Be forewarned, Internet shoppers are rate shoppers until the end, so close the loan quickly and get payment upfront!
* Be prepared to deal with competing, uneducated, low-life, lying loan officers who will say anything to get the sale.
With that said, here’s how I approach my Internet mortgage leads and why I have had such an excellent success rate:
1. I always start by calling the lead as soon as I receive it. I want the customer to hear me first and remember who I am.
2. I never throw a lead away. Until I get a firm, vocal, “no” from a live person on the phone, I will keep on calling and leaving my “teaser” rate message (see below). Eventually, the customer will call you back and tell you that they are “interested” or “all set”.
3. I never send emails out to people who requested information through the lead. They will never write back, and if they do, they will refuse to speak with you and waste your time.
4. Customers will try to commoditize loan officers down to just rate, and I refuse to be pigeon-holed and boiled down to the lowest common denominator. As we all know, simply the lowest rate may not be there best option. I want to talk to a live person and uncover exactly what they want to accomplish through the loan.
5. Always try to get the customer at work first. They will be more polite to talk to, and will take the time to listen to what you have to say. If not at work, then call their home or cell number.
6. If you call them at home, and a spouse or partner answers, try to get as much information as you can about what they are looking to do. You do not have to actually talk to the person on the lead to get the information you are looking for. (I simply fill-out one of my mortgage pre-qual worksheets from my Sink or Swim Loan Closing System, and don’t bother to waste time by taking a full-application this early in the process. I want to get a handle on the loan first).
7. Try not to leave a message on their voicemail or answering machine the first few times you call. You want to speak to a real person. If you have to leave a message, use my special “teaser” message. This always gets people to call me back and has been very effective: “Hi (prospect’s name). This is (your name) from (your company) We had you on our interest rate watch list and I just wanted to call and let you know that there has been a change in the market. Please call me at (leave your number), so I can update you on the rates. I should be here until about 6:30 PM. I’m waiting to hear back from a couple of other investors, so I’ll keep looking for a better deal for you. Once again, this is (your name) from (your company). Please call me as soon as you can at (leave your number again). Hope to speak to you soon.”
8. Once you have spoken to the customer and gathered the necessary information, close the conversation by saying that you will email them a proposal with interest rates and several loan scenarios. Never, never, never, say what the rate is over the phone. You want the customer to be expecting your proposal. This gets them to actually read it.
9. Call to confirm that they have actually received the proposal and go over it with them. This will give you something to talk about and is a good reason to call them back, without seeming like a “bother”. It also helps to establish trust and make the prospect feel more comfortable, especially since they are doing business entirely over the phone.
10. Answer as many questions as you can and explain how simple and easy the entire loan process will be with you. Try to add as much value as you can while you close the sale.
There are many different ways to approach leads. I have tried to systemize the process as much as possible in order to be successful. Hope these tips help!
Friday, February 22, 2008
How The Mortgage Net Branch Really Makes It Money
In the past few issues, we’ve been discussing net branches, and the advantages and disadvantages of this type of loan origination. I covered the reasons why loan officers decide to go out on their own, and what makes one net branch better than another. There are a myriad of choices and literally thousands to choose from! Ultimately, the most important factor in any decision is deciding which company will best serve YOUR needs so you can achieve the level of success you deserve. If the company only talks about themselves, then you know who comes first! They do!!!!
In evaluating net branches, I thought it best to let you Sink or Swimmers in on a little secret. It’s something that nobody talks about and is one of the best kept secrets in the industry. Certainly the net branches won’t tell you, but today I am going to spill the beans. I am going to tell you exactly how the net branches make their money, so you can better understand how you will make YOURS.
Net branches make money two ways:
1. They make money from you, the loan officer.
OR
2. They make money from the bank.
Most of the time, it is a combination of the two. Here’s how it works.
Net branches may make money from you by:
* Charging an in-house processing fee to do your loans.
* Charging an upfront joining fee or flat monthly fee to do business with them and be a part of their company.
* Charging a flat rate per-file fee on each and every loan file that passes through them (different than the processing fee, this is usually listed as a flat rate and they will forgo any commission and give you 100% commission of the YSP, yield spread premium, from the lender).
* Charging you for the customer’s credit reports, appraisals, etc. and making you eat the cost if the customer doesn’t pay for these things upfront.
* Making you pay for your own training (which they provide) or making you attend pep-rallies or buy other “motivational” material. (I am not going to say who this is, but I am sure you’ve heard of them!)
* Tacking on other little administrative “expenses” here and there under mysterious names, (if you’ve ever tried to decipher a phone bill and figure out all the small charges you know what I mean, so watch out!).
Net branches make money from the bank by:
* Taking a percentage of the final commission split. So if you are getting 80% commission, they get 20% of the total take.
* Giving you “in-house” rate sheets that the lender sends them, and they in-turn mark-up and redistribute to you. They take a “mini” spread on each and every loan you do. In effect you are getting retail rates and not wholesale rates from the lender. The net branch is taking a cut off the top of your YSP commission which YOU WILL NEVER EVEN SEE, because it is on the back-end from the lender. If they insist you only take their rate-sheets from the HQ, watch out!
* “Kick-backs” and in-kind deals for referring business to their preferred providers, whether it be lenders, appraisers, title companies, etc. They may have a business relationship set-up with them. If it means lower costs, then it’s great for you. If the costs are higher than what’s normal, who do you figure is pocketing the difference?
* Basis-points agreements in place with lenders, where on a certain loan volume, the commissions and incentives to them increase (these are usually never passed onto the loan officer).
Now, of course, the net branch is entitle to make money. They deserve to. After all, they are helping you get started in your own mortgage business. Firms may do some or all of the above. It will be a combination of money from you and money from the lender. Ultimately, it’s up to you to ask questions and determine how both you and they will be paid.
What you want to look for, is a net branch that puts its loan officers first and goes the extra mile to help you succeed. Remember, if you are making the kind of money you deserve and achieving your goals, the net branch will also achieve theirs.
In next weeks issue, I am going to name some of the best names in mortgage net branching and who you should consider looking at before making a final decision.
In evaluating net branches, I thought it best to let you Sink or Swimmers in on a little secret. It’s something that nobody talks about and is one of the best kept secrets in the industry. Certainly the net branches won’t tell you, but today I am going to spill the beans. I am going to tell you exactly how the net branches make their money, so you can better understand how you will make YOURS.
Net branches make money two ways:
1. They make money from you, the loan officer.
OR
2. They make money from the bank.
Most of the time, it is a combination of the two. Here’s how it works.
Net branches may make money from you by:
* Charging an in-house processing fee to do your loans.
* Charging an upfront joining fee or flat monthly fee to do business with them and be a part of their company.
* Charging a flat rate per-file fee on each and every loan file that passes through them (different than the processing fee, this is usually listed as a flat rate and they will forgo any commission and give you 100% commission of the YSP, yield spread premium, from the lender).
* Charging you for the customer’s credit reports, appraisals, etc. and making you eat the cost if the customer doesn’t pay for these things upfront.
* Making you pay for your own training (which they provide) or making you attend pep-rallies or buy other “motivational” material. (I am not going to say who this is, but I am sure you’ve heard of them!)
* Tacking on other little administrative “expenses” here and there under mysterious names, (if you’ve ever tried to decipher a phone bill and figure out all the small charges you know what I mean, so watch out!).
Net branches make money from the bank by:
* Taking a percentage of the final commission split. So if you are getting 80% commission, they get 20% of the total take.
* Giving you “in-house” rate sheets that the lender sends them, and they in-turn mark-up and redistribute to you. They take a “mini” spread on each and every loan you do. In effect you are getting retail rates and not wholesale rates from the lender. The net branch is taking a cut off the top of your YSP commission which YOU WILL NEVER EVEN SEE, because it is on the back-end from the lender. If they insist you only take their rate-sheets from the HQ, watch out!
* “Kick-backs” and in-kind deals for referring business to their preferred providers, whether it be lenders, appraisers, title companies, etc. They may have a business relationship set-up with them. If it means lower costs, then it’s great for you. If the costs are higher than what’s normal, who do you figure is pocketing the difference?
* Basis-points agreements in place with lenders, where on a certain loan volume, the commissions and incentives to them increase (these are usually never passed onto the loan officer).
Now, of course, the net branch is entitle to make money. They deserve to. After all, they are helping you get started in your own mortgage business. Firms may do some or all of the above. It will be a combination of money from you and money from the lender. Ultimately, it’s up to you to ask questions and determine how both you and they will be paid.
What you want to look for, is a net branch that puts its loan officers first and goes the extra mile to help you succeed. Remember, if you are making the kind of money you deserve and achieving your goals, the net branch will also achieve theirs.
In next weeks issue, I am going to name some of the best names in mortgage net branching and who you should consider looking at before making a final decision.
20 Habits Of Top Producers In The Mortgage Industry And Why You Should Follow Their Lead
Top producers aren’t made overnight and the skills they use to generate more business can’t be learned in a day. However, I’m going to try and isolate the skills that I’ve seen in the top producers that I’ve worked with, and the reason for their success.
1. Top producers are extremely organized and on top of things. They never let a small detail slip through the cracks because they know that tiny problems upfront can lead to BIG problems at the closing table.
2. Top producers are proactive. They look ahead. They have foresight and try to steer clear of problems before they arise.
3. Top producers hedge their bets. They have thoroughly analyzed the customer, and have multiple loan scenarios ready to sell them on. If the customer’s needs change or they want to compare multiple loan programs, there is a proposal already prepared.
4. Top producers know the mortgage market. They watch the rates closely and lock only when the customer feels comfortable with the rate they are getting and are ready to move forward. This way, the customer feels a part of the process and you, as the trusted advisor, have worked with them to get the best rate available given their situation.
5. Top producers communicate. They stay in constant contact with the customer, their processor, and any other third parties they are working with on the loan.
6. Top producers know when to draw the line. They know that they can’t do everything themselves and they have systems and processes set in place to streamline their mortgage business. Once they push the loan file up to a certain point, they know where their job ends and the processors job begins.
7. Top producers have a start and stop time. Their work doesn’t take over their whole life. They know that things have a tendency to take over whatever available time there is. By setting firm deadlines they know they can accomplish much more than leaving things open-ended.
8. Top producers make the hard sales calls first. They don’t put off the trouble customers. They take care of issues upfront so that the rest of their day is trouble free.
9. Top producers don’t socialize in the office. They go to work to work and make money, not to meet new drinking buddies or get a date. They also don’t hang-out in the cafeteria, lunch room or at the water cooler. They come into the office on a mission to sell loans and they get straight to work.
10. Top producers make to-do lists then cross them off. At the end of the day, they update the list and start over again tomorrow. By writing things down they hold themselves accountable.
11. Top producers are extremely well dressed and take pride in their appearance. They know that a sloppy exterior communicates a sloppy loan experience for the customer. People trust people that are successful and look the part.
12. Top producers know that they are only as good as their last loan. To sell loans you’ve got to SELL LOANS, and they know they can never take their foot off the pedal. As soon as they do, the pipeline dries up.
13. Top producers love what they do. They enjoy the challenge of the mortgage industry and the daily excitement. They also love helping people achieve their dreams, buying or refinancing their home.
14. Top producers read daily. They study the mortgage trade press and know what’s happening in the larger industry overall. This gives them a much broader appeal as they understand the multiple dynamics in the marketplace.
15. Top producers know the rate sheets inside and out. They can add numbers in their head and they have a “price” in mind when quoting to the customer. They don’t get lost on the rate sheet because they know exactly where to look on paper or online.
16. Top producers are fair. They know how much money they want to make on every deal, but price loans within reason. They understand that a customer getting a fair deal is worth at least 2 or 3 more loans over the customer’s lifetime.
17. Top producers ask for referrals. They tell the customer to keep them in mind if they come across anyone who needs a mortgage or wants a free quote.
18. Top producers market daily. They take at least one step a day towards getting the word out about them by contacting new referral partners, associates and past customers.
19. Top producers know their wholesale lender account reps, appraisers and underwriters on the loan. They know that no loan happens in a vacuum and that if they have bad relations once with a particular partner, they will have even more issues the next time around with another loan.
20. Top producers listen to advice. They know that being in the mortgage business is a daily education and they aren’t afraid to ask the hard or stupid questions. This, in turn makes them a better trained loan officer and more successful.
Remember, to be effective, these 20 success habits must be implemented daily over the entire course of your career. Doing a step or two for a few days, then forgetting to do them, is just as good as not doing anything at all. You won’t see results and you’ll get frustrated with the process.
To move your business moving forward and become a top producer, do what top producers do and you’ll have what top producers have.
1. Top producers are extremely organized and on top of things. They never let a small detail slip through the cracks because they know that tiny problems upfront can lead to BIG problems at the closing table.
2. Top producers are proactive. They look ahead. They have foresight and try to steer clear of problems before they arise.
3. Top producers hedge their bets. They have thoroughly analyzed the customer, and have multiple loan scenarios ready to sell them on. If the customer’s needs change or they want to compare multiple loan programs, there is a proposal already prepared.
4. Top producers know the mortgage market. They watch the rates closely and lock only when the customer feels comfortable with the rate they are getting and are ready to move forward. This way, the customer feels a part of the process and you, as the trusted advisor, have worked with them to get the best rate available given their situation.
5. Top producers communicate. They stay in constant contact with the customer, their processor, and any other third parties they are working with on the loan.
6. Top producers know when to draw the line. They know that they can’t do everything themselves and they have systems and processes set in place to streamline their mortgage business. Once they push the loan file up to a certain point, they know where their job ends and the processors job begins.
7. Top producers have a start and stop time. Their work doesn’t take over their whole life. They know that things have a tendency to take over whatever available time there is. By setting firm deadlines they know they can accomplish much more than leaving things open-ended.
8. Top producers make the hard sales calls first. They don’t put off the trouble customers. They take care of issues upfront so that the rest of their day is trouble free.
9. Top producers don’t socialize in the office. They go to work to work and make money, not to meet new drinking buddies or get a date. They also don’t hang-out in the cafeteria, lunch room or at the water cooler. They come into the office on a mission to sell loans and they get straight to work.
10. Top producers make to-do lists then cross them off. At the end of the day, they update the list and start over again tomorrow. By writing things down they hold themselves accountable.
11. Top producers are extremely well dressed and take pride in their appearance. They know that a sloppy exterior communicates a sloppy loan experience for the customer. People trust people that are successful and look the part.
12. Top producers know that they are only as good as their last loan. To sell loans you’ve got to SELL LOANS, and they know they can never take their foot off the pedal. As soon as they do, the pipeline dries up.
13. Top producers love what they do. They enjoy the challenge of the mortgage industry and the daily excitement. They also love helping people achieve their dreams, buying or refinancing their home.
14. Top producers read daily. They study the mortgage trade press and know what’s happening in the larger industry overall. This gives them a much broader appeal as they understand the multiple dynamics in the marketplace.
15. Top producers know the rate sheets inside and out. They can add numbers in their head and they have a “price” in mind when quoting to the customer. They don’t get lost on the rate sheet because they know exactly where to look on paper or online.
16. Top producers are fair. They know how much money they want to make on every deal, but price loans within reason. They understand that a customer getting a fair deal is worth at least 2 or 3 more loans over the customer’s lifetime.
17. Top producers ask for referrals. They tell the customer to keep them in mind if they come across anyone who needs a mortgage or wants a free quote.
18. Top producers market daily. They take at least one step a day towards getting the word out about them by contacting new referral partners, associates and past customers.
19. Top producers know their wholesale lender account reps, appraisers and underwriters on the loan. They know that no loan happens in a vacuum and that if they have bad relations once with a particular partner, they will have even more issues the next time around with another loan.
20. Top producers listen to advice. They know that being in the mortgage business is a daily education and they aren’t afraid to ask the hard or stupid questions. This, in turn makes them a better trained loan officer and more successful.
Remember, to be effective, these 20 success habits must be implemented daily over the entire course of your career. Doing a step or two for a few days, then forgetting to do them, is just as good as not doing anything at all. You won’t see results and you’ll get frustrated with the process.
To move your business moving forward and become a top producer, do what top producers do and you’ll have what top producers have.
Tuesday, February 19, 2008
Where To Find Pre-Foreclosure Mortgage Leads For Your Mortgage Business
One of my goals is to offer you valuable information that will immediately impact the bottom-line of your mortgage business. What I find lacking in many of the “professional” trade publications out there, is real-life ACTIONABLE information you can take-away today and begin generating actual business from tomorrow.
Many of you have emailed me asking about new sources of business. And, besides beating down realtors door’s (which every other monkey loan officer is doing), there are huge segments of the market you may have overlooked. With interest rates rising fast, personal bankruptcies and foreclosures are increasing steadily. And this is a market segment you CAN NOT IGNORE.
Properties in foreclosure can be a boondoggle for you whether you are an investor looking to pick-up a bargain property, or a loan officer ready to swoop-in and save someone’s property from the Repo Man.
For mortgage people, foreclosures can generate business 3 ways:
1. You can try and fund the property, pay off the note and save it from the bank. (Be aware that not all lenders, especially A-paper will do a property in foreclosure).
2. You can secure the new loan from the new buyer of the property and provide financing as a purchase loan.
3. You can get the person who was foreclosed upon, a new loan for a new property. Many B-paper sub-prime lenders will finance a person even just 1-day out of bankruptcy.
These are 3 immediate things a pre-foreclosure property can give you. Here are some methods you can use to locate these type of deals.
1. Referrals from title companies, real estate attorneys, other lenders etc. There are many 3rd parties involved in the foreclosure process and nothing happens in a vacuum. Chances are, you will hear about it if you have your ear to the ground.
2. Check the newspaper under the properties section. Also, be sure to read the smaller dailies and weeklies that are out there.
3. Subscribe to a clipping service that find the leads for you. Many press clipping companies will also clip other information if you ask. Check in the phone book under media, press or public relations.
4.Subscribe to an internet site such as Foreclosureleads.com, Foreclosures.com, Foreclosurelistings.com Prices vary by service and state. You will want to investigate their source for the data to be sure you are getting the most accurate and up-to-date information.
5. Go directly down to the courthouse yourself and ask. Property undergoing foreclosure is public information and you have a right to get access to it. This is the most direct and cost effective route, though it may be very intensive.
In conclusion, don’t give-up because all the refinance loans have disappeared. Change your strategy and try something different. Top producers succeed because they can adapt to market conditions and are willing to go where others won’t. Take steps today, and I can guarantee you will have more fresh loans tomorrow.
Many of you have emailed me asking about new sources of business. And, besides beating down realtors door’s (which every other monkey loan officer is doing), there are huge segments of the market you may have overlooked. With interest rates rising fast, personal bankruptcies and foreclosures are increasing steadily. And this is a market segment you CAN NOT IGNORE.
Properties in foreclosure can be a boondoggle for you whether you are an investor looking to pick-up a bargain property, or a loan officer ready to swoop-in and save someone’s property from the Repo Man.
For mortgage people, foreclosures can generate business 3 ways:
1. You can try and fund the property, pay off the note and save it from the bank. (Be aware that not all lenders, especially A-paper will do a property in foreclosure).
2. You can secure the new loan from the new buyer of the property and provide financing as a purchase loan.
3. You can get the person who was foreclosed upon, a new loan for a new property. Many B-paper sub-prime lenders will finance a person even just 1-day out of bankruptcy.
These are 3 immediate things a pre-foreclosure property can give you. Here are some methods you can use to locate these type of deals.
1. Referrals from title companies, real estate attorneys, other lenders etc. There are many 3rd parties involved in the foreclosure process and nothing happens in a vacuum. Chances are, you will hear about it if you have your ear to the ground.
2. Check the newspaper under the properties section. Also, be sure to read the smaller dailies and weeklies that are out there.
3. Subscribe to a clipping service that find the leads for you. Many press clipping companies will also clip other information if you ask. Check in the phone book under media, press or public relations.
4.Subscribe to an internet site such as Foreclosureleads.com, Foreclosures.com, Foreclosurelistings.com Prices vary by service and state. You will want to investigate their source for the data to be sure you are getting the most accurate and up-to-date information.
5. Go directly down to the courthouse yourself and ask. Property undergoing foreclosure is public information and you have a right to get access to it. This is the most direct and cost effective route, though it may be very intensive.
In conclusion, don’t give-up because all the refinance loans have disappeared. Change your strategy and try something different. Top producers succeed because they can adapt to market conditions and are willing to go where others won’t. Take steps today, and I can guarantee you will have more fresh loans tomorrow.
Saturday, February 16, 2008
The Straight Dope On Mortgage Refinance Loans
Times are tough, there is no doubt about that. Interest rates are inching up and much of the hub-bub of the refinance boom is over. It’s the difficult loans that remain, amongst them mostly purchases.
It’s time to face facts. The A-paper good credit refinance loans are over. There is little chance that you’ll be able to convince anyone to refinance, unless they are in extreme dire financial straights and have a tremendous amount of debt to pay off (and in that case, they are probably sub-prime borrowers anyway). Because consumers are interest rate sensitive, even though they are combining total debt into a lower payment, you will be hard-pressed to get them to trade their 5.25% mortgage rate for a 7.5% rate. It simply won’t happen.
In order to sell these types of refinance loans (combining and rolling debt into the mortgage), you will have to hit the customer’s hot buttons. Are they concerned about lowering the monthly out-go? Have they recently had a major financial change in their life? Lost their job? Unexpected bills? Whatever the reason, the customer’s immediate concern is the monthly cash flow. They aren’t thinking long term, and what this will do to their financial future. All they care about is getting back on their feet. And this is where YOU can help. But do it if it only makes sense. Don’t sell a loan if you yourself wouldn’t do the same thing.
Know that long term, when you roll debt into a mortgage, you pay much more on that debt than you ever would by paying it off yourself. You end-up carrying the debt over a much longer term, 30 years on a 30 year note, and the accumulated total interest charged is much, much higher. Even tens of thousands of dollars higher!
Yes, there are tax benefits to this and you can deduct the interest from your mortgage off of your taxes. But, what happens cash-flow-wise is that the customer is stuck with an elevated monthly mortgage payment over the LONG TERM. Short term, the combined total monthly cash flow is lower by combining debt, but long term their monthly mortgage payment will be higher than what they originally started with.
In order words if the customer simply got a debt consolidation loan or a HELOC from their bank, at least when the debt is finally paid off, they would still have the same low monthly mortgage they have now. By paying debt though refinancing, long term the customer shoots themselves in the foot by paying a higher interest rate and having a higher monthly mortgage payment (which will never go back down unless they refinance again or pay off the note).
These types of refinance loans made sense when rates were low and customers were cutting both their monthly mortgage rate and monthly payment. It was logical and the financial benefits could be seen in black and white. Nowadays, these debt-consolidation mortgage loans are almost un-sellable. It’s simple economics and no matter how you try to push it, it’s a very hard sell indeed. You would not only be doing the customer a disservice but yourself.
Give up on these types of refinance loans for now. Focus on purchase loans and sub-prime. That’s where the money is and that’s how you’re going to succeed in this market.
It’s time to face facts. The A-paper good credit refinance loans are over. There is little chance that you’ll be able to convince anyone to refinance, unless they are in extreme dire financial straights and have a tremendous amount of debt to pay off (and in that case, they are probably sub-prime borrowers anyway). Because consumers are interest rate sensitive, even though they are combining total debt into a lower payment, you will be hard-pressed to get them to trade their 5.25% mortgage rate for a 7.5% rate. It simply won’t happen.
In order to sell these types of refinance loans (combining and rolling debt into the mortgage), you will have to hit the customer’s hot buttons. Are they concerned about lowering the monthly out-go? Have they recently had a major financial change in their life? Lost their job? Unexpected bills? Whatever the reason, the customer’s immediate concern is the monthly cash flow. They aren’t thinking long term, and what this will do to their financial future. All they care about is getting back on their feet. And this is where YOU can help. But do it if it only makes sense. Don’t sell a loan if you yourself wouldn’t do the same thing.
Know that long term, when you roll debt into a mortgage, you pay much more on that debt than you ever would by paying it off yourself. You end-up carrying the debt over a much longer term, 30 years on a 30 year note, and the accumulated total interest charged is much, much higher. Even tens of thousands of dollars higher!
Yes, there are tax benefits to this and you can deduct the interest from your mortgage off of your taxes. But, what happens cash-flow-wise is that the customer is stuck with an elevated monthly mortgage payment over the LONG TERM. Short term, the combined total monthly cash flow is lower by combining debt, but long term their monthly mortgage payment will be higher than what they originally started with.
In order words if the customer simply got a debt consolidation loan or a HELOC from their bank, at least when the debt is finally paid off, they would still have the same low monthly mortgage they have now. By paying debt though refinancing, long term the customer shoots themselves in the foot by paying a higher interest rate and having a higher monthly mortgage payment (which will never go back down unless they refinance again or pay off the note).
These types of refinance loans made sense when rates were low and customers were cutting both their monthly mortgage rate and monthly payment. It was logical and the financial benefits could be seen in black and white. Nowadays, these debt-consolidation mortgage loans are almost un-sellable. It’s simple economics and no matter how you try to push it, it’s a very hard sell indeed. You would not only be doing the customer a disservice but yourself.
Give up on these types of refinance loans for now. Focus on purchase loans and sub-prime. That’s where the money is and that’s how you’re going to succeed in this market.
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