 |
How to Win More New Mortgage Loans and Influence Borrowers as a Loan Officer
Author: Robert Lawrence | Posted: 27-01-2008 | Views: 3 | 
When I was a new loan officer, one of the most difficult things I had to learn was that not every loan that walked in the door was a good loan. Some loans were bad. Really bad. And like time bombs waiting to go off, they usually exploded right before closing—taking my hard-earned commission with it! It doesn’t take too many loans falling-out to learn fast that not every loan is worth your time.
New loan officers are hopeful. They’re excited. They want to sell and--of course--they want to close loans. But because they are new, they lack experience. More importantly, they lack intuition. They don’t know the problems and pitfalls to watch out for and they can’t accurately judge if a loan is worth pursuing or not. In their eyes, every loan is a possible commission. And they’ll do whatever it takes to get it!
But please be careful. That loan you are about to price-out could be a long-term headache, especially if you don’t know all the facts upfront. Customer love to “hide” things and they won’t volunteer information unless you ask.
It is important to have a complete picture of the borrowers financial history, future goals, risk patterns, etc. so you can make a value-judgment on the type of loan that would work best for them (given their personal situation). You need to know when to offer a fixed rate, adjustable rate, interest-only, 80/20, HELCO, LIBOR, second only, etc., all different types of loans.
You also need to educate the borrower as to how the mortgage process works and how complex it is. They need to know that you aren’t just an order-taker. There are differences that exist between programs, and there are a million rates from a thousand lenders. No one truly has the lowest rate, because there isn’t one. When the “lowest” rate is found that day, someone else will always do it one lower. And with rates fluctuating all the time, trying to find the “lowest” is like trying to hit a moving target flying at 30,000 feet. It can’t be done! Do you have time to research every lender and read all the loan guidelines? Of course not! You’re too busy selling loans! Lol.
To win in this business you need to quickly cut the wheat from the chafe, and knock the customer off rate and get into the meat of the loan. What are they trying to accomplish? Do they have any other debt they can roll into the loan? Would they like to cut their monthly loan payments? Is there anyone else on the loan with them? Does the property have any peculiarities that you need to be aware of before you order the appraisal? Etc. etc. etc.
I ask literally hundreds of questions of all of my borrowers and it’s the single reason why I have been so successful over my career. I want to know everything UPFRONT—and I do mean EVERYTHING! I ask it all, because I don’t like surprises and borrowers don’t either. By the way, you can see my entire list of questions at http://www.loanclosingsystem.com as each step is covered in excruciating detail on the worksheets in Sink or Swim.
It’s funny, one of the most frequently asked questions I get from customers is, “Why are you asking me all these detailed questions? No one else asked me this?”
My response: “Well, Mr. Prospect…these questions all affect your interest rate and I want to make sure I get the best deal for you. Let me ask you this, if no one else asks you these questions, how do you know you’re getting the lowest rate possible?”
Their reply…simply DEAD SILENCE. And then I know I’ve won. The customer is mine for life. I’ve knocked them off rate. Customers can sense if they can trust you and they would rather go with someone they feel comfortable with rather than take a chance and get burned at the closing table.
Ask questions that others don’t and you will quickly set yourself apart as a person who’s serious about helping the borrower. Don’t reinvent the wheel. Do what I do and you will win too.
Rate this Article:
Article Source: http://www.articlesbase.com/mortgage-articles/how-to-win-more-new-mortgage-loans-and-influence-borrowers-as-a-loan-officer-316621.html
About the Author:Rob Lawrence is ranked one of top national trainers in the mortgage industry. He is the currently the CEO of Battlecall.com, coaching, tools and resources to turn mortgage professionals into mortgage warriors. Visit http://www.battlecall.com for his free “Sink Or Swim” weekly newsletter, mortgage training, marketing advice and more! Jumpstart your career in the mortgage business, starting today.
|
Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free! |
|
Related Articles
Be Thankful as a Loan Officer for the Mortgage Industry Shake-up
By: Robert Lawrence | 27/01/2008 | Mortgage
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!
How to Save Time on Mortgage Good Faith Estimates When Working as a Loan Officer
By: Robert Lawrence | 27/01/2008 | Mortgage
Generating Good Faith Estimates (GFE’s) can be extremely time consuming, especially if done the wrong way. I remember when I was first starting out in the industry, it seemed like all I was doing all day was filling out GFE’s, and getting no where. When talking to a customer, it’s easy to say, “Hey, I’ll just send you a GFE, and you can look it over and tell me what you think”. But, this is the wrong way to approach things. Let me explain…here are a few tips to help you.
The Straight Dope on Mortgage Refinance Loans
By: Robert Lawrence | 27/01/2008 | Mortgage
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.
How to Choose a Mortgage Netbranch When Starting your Own Mortgage Company
By: Robert Lawrence | 27/01/2008 | Mortgage
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.
If you Want More Mortgage Business, Never, Ever, Say This Word
By: Robert Lawrence | 27/01/2008 | Mortgage
During my public speaking and private coaching sessions, I cover many unconventional strategies that have helped me become a top producer in the mortgage industry. I’ve always been one to think out of the box, and my mind is always focused on how I can improve myself as a loan officer and become more successful.
The Truth About Mortgage Internet Leads
By: Robert Lawrence | 27/01/2008 | Mortgage
One question I get over and over again from loan officers is “Are internet leads a good source for new business?” My answer always is “Well, yes and no. Proceed with caution and please be careful.”
What I about to share with you today, is the REAL truth about internet leads, and something no one else in the industry is talking about. You won’t hear this information anywhere else! It’s one of the most hidden aspects of mortgage marketing.
How to Survive Outside your Comfort Zone When Making Sales
By: Robert Lawrence | 27/01/2008 | Self Improvement
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.
Is the Mortgage Business Right for You?
By: Robert Lawrence | 27/01/2008 | Mortgage
Let’s face facts. The mortgage business isn’t for the faint of heart. It takes guts and relentless determination in order to succeed. You won’t become a top producer overnight and your early months of being in this industry will be hell. There is so much to learn as a broker not only with the mechanics of the loan process, but also learning how to deal with difficult customers and balancing the demands of lenders and other outside third parties. It really is a juggling act.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
Hi, I am an American living in Sweden and have ...
By: Fred | 16-05-2008
Hi, I am an American living in Sweden and have investments over here in Swedish currency. With todays Dollar rate it would translate into lots and lots of Dollars, and was wondering what you think of transferring all to my/a new U.S. bank or investment house and get good return and investing it the same way but from the U.S., we are moving back to the U.S. in a few years, but by then I think the Dollar has risen again to it's "normal" level, so we would probably not be able to gain as much as now. Grateful for all opinions and advice. Sincerely, Fred
Venture capital
By: bob | 15-05-2008
what is the typical percentage a venture capitalist would take for ownership in a company or profits to provide start up capital.
My company had a 403b plan, but now has a 401k ...
By: kitty | 15-05-2008
My company had a 403b plan, but now has a 401k plan. Contributions were terminated for the 403b and we were told we couldn't move that money into the 401k. Now the money just sits. Is there anything I can do besides withdrawing the money and taking a huge penalty?
My wife and i are on income support with a ...
By: keithycool | 15-05-2008
my wife and i are on income support with a disability premium but own our home outright . is there any companies which could give us a loan at a decent rate?
Hi my name is rich,india. i want to know what dish ...
By: rich | 15-05-2008
hi my name is rich,india. i want to know what dish should i buy with digital receiver to recive free to air english, russian movie channels.what will be the cost be. mail me at rich81@sify.com
Can you have a child placed in you home before you ...
By: buddy | 14-05-2008
can you have a child placed in you home before you get your foster license
Q&A Powered by: 
Latest Mortgage Articles
Introduction to Mortgage Broker License
By: Brayan Peter | 16/05/2008
Are you looking for a best mortgage in the state! Mortgage brokers are special person who offers guaranteed finance products to the customers looking for. Today more number of people becomes an agent and started doing their business by meeting their requirements of the customers, whether to start a new business or to buy a new home or to educate, people requires money. Money is a wide term which is required by almost every individual during their life time.
What is a Self-certification Mortgage?
By: michael sterios | 15/05/2008
A self-certification mortgage is a method a declaring income that will be suited to an applicant who may have sources of income that are not easy to prove. It is important to note that a self-certification mortgage is not a type of product, rather it is a method of declaring income.
Adverse Credit Mortgage Broker Fees
By: michael sterios | 15/05/2008
Just because you suffer from adverse credit, it does not mean that you will automatically need to use the services of a mortgage broker who will charge a large fee when helping you apply for an adverse credit mortgage. Although the fees targeted at adverse credit mortgage applicants are normally high when compared to applicants with clean credit, some brokers choose to not take advantage of the situation and do not charge excessive fees to their adverse credit clients.
Bad Credit Mortgages With a Catch
By: michael sterios | 15/05/2008
People searching for bad credit mortgages should be wary of products which advertise low headline interest rates. Quite often, the mortgages that seem the best value on the surface turn out to be the most expensive in the long run. Borrowers should assess each bad credit mortgage based on its overall cost and not just the rate of interest that they will pay in the first few years. This rate is often lowered so that the lender can advertise their product more favourably.
Refinancing Buy-to-let Mortgages
By: michael sterios | 15/05/2008
Remortgages now comprise almost half of all mortgage business written in the UK. This is largely due to the mainstream residential mortgage market. Refinancing buy-to-let mortgages is not quite as popular. The majority of buy-to-let mortgages approved are made up of mortgages obtained on the properties at purchase. Buy-to-let remortgages consist of a much smaller portion when compared to the residential market.
Bad Credit History Doesn't Mean the End of Your Mortgage Hopes
By: Aaron Hill | 15/05/2008
It is harder to get a bad credit mortgage these days thanks to credit crunch which had its origins in the US. There are many lenders who deal in sub-prime mortgages, and after three clear years you should be able to switch to a regular mortgage.
Keeping Afloat – Re Mortgages Boost Market
By: Jack Harris | 15/05/2008
The act of re mortgaging one’s house should never be taken lightly – after all, one is playing with the very roof over one’s head. Never the less, it can be a useful tool in obtaining more capital with which to make investments, or to use to raise more cash in another way.
Mortgage Lenders Face Repossession
By: Phil | 15/05/2008
Britain’s financial regulator has warned that more than one million families in the UK risk losing their homes in the next 18 months as a result of the global credit crunch.
More from Robert Lawrence
Where to Find Pre-foreclosure Mortgage Leads for your Mortgage Business
By: Robert Lawrence | 27/01/2008 | Mortgage
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.
What to Look for in a Mortgage Loan Processor
By: Robert Lawrence | 27/01/2008 | Mortgage
Good as gold. That’s what I call a processor that knows how to get the job done, and quickly. I’m met many loan processors in my career, and I can honestly say that many of them were not very good. It’s not that they didn’t “work hard”. They did. It’s just that although they were extremely busy “working hard”, it didn’t matter. They didn’t close the loan—meaning I didn’t get paid. Boo hoo! ;-) I learned this lesson very quickly.
What to Do With a Low Mortgage Appraisal on a Loan
By: Robert Lawrence | 27/01/2008 | Mortgage
On every loan, there are a number of hurdles that must be overcome before the loan is “cleared to close” by the underwriter. One of the most important hurdles is the appraised value on the property. A deal can be dead on arrival, if the property comes in too low. A value can never be high enough (given the local market conditions), provided that there is comparable value to support it.
What to Do When you Feel Defeated in the Mortgage Industry and are Ready to Give Up
By: Robert Lawrence | 27/01/2008 | Mortgage
Every day I hear from loan officers across the country who are fed-up with low commissions and dwindling paychecks as the reality of the new mortgage economy sets in. They’ve had it and many can’t hold on much longer. Others take a more balanced view and decide to hanker down and weather the rough seas ahead by changing their approach.
Here are some things to keep in mind when you feel defeated and are ready to give up.
What Mortgage Industry Insiders Read to Stay Up to Date in Their Business
By: Robert Lawrence | 27/01/2008 | Mortgage
Keeping up-to-date on everything going on in the mortgage industry can be a daunting task. With all of the coming changes from HUD and RESPSA, staying aware of rules and regulations is not only a necessity—it’s an absolute must! You do not want to risk a career you have worked so hard for!
Unconventional Ways to Approach Realtors Without Donuts as a Loan Officer
By: Robert Lawrence | 27/01/2008 | Mortgage
With the rise of interest rates and the drying-up of the refinance market, it makes sense to transition your business to the purchase money market. After all, home purchase loans will become the bulk of your broker transactions and it is only prudent to be prepared to capture these leads.
Two Ways to Start your Own Mortgage Company From Someone Who’s Been There and Done That
By: Robert Lawrence | 27/01/2008 | Mortgage
One of the most frequent questions I get asked from loan officers is, “How can I go out on my own and start my own mortgage company?” Often times, the person is sick and tired of low-commissions, office politics, too restrictive a time-schedule, etc. There are hundreds of reasons why they want to get out.
They see the money other loan officers are making, and wonder why they aren’t making that kind of money too? After all, they are doing the SAME work.
Traits and Skills Every Top Producer Needs to be Successful in the Mortgage Business
By: Robert Lawrence | 27/01/2008 | Mortgage
When I was a branch manager, there were always certain traits and skills I looked for before deciding to hire someone. After years of experience, and learning things the hard way, I know what it takes to be successful. Not everyone is cut out to be a loan officer. The mortgage business is like no other, and it takes a certain type of person to be successful in this industry.
Here are some of the top traits and skills I believe every loan officer must have in order to be successful.
|
|
Finance 
