How To Keep Borrowers With You The Whole Way Until Closing
Rob Lawrence, Chief Mortgage Warrior Of
Battlecall.com
As any loan officer knows, one of the hardest parts of the job is NOT all the
number-crunching, it's actually keeping the customer with you until you close
the loan. That's right! The hardest part of the job is actually making sure that
YOUR customer stays with you the ENTIRE way.
How many times have you--as a loan officer--taken an application&priced-out the
loan&ordered title and appraisal&gathered documents&input them into the
computer&handed the file over the to closing department&then after doing all
this, have the borrower pull out at the last minute! Whoa! What a let-down! You
did all that work for nothing! Nada. Zip. Zilch. Zero.
Besides being frustrating, it's hurts you financially, right in the wallet! And
a lost deal can mean a loss of $2,200 to $3,000¬ to mention any future
business or referrals from that customer.
Here are some of the best ways to gain commitment from your customer and keep
them on-board with you the entire way.
1. Make the customer pay for the appraisal upfront and at-the-door. This
gives them a financial stake in the transaction. If they pull-out of the deal,
it's their money they lose--not yours. Also, make them pay for their credit
report as well. Credit reports are usually under $35 or less, and even a small
financial obligation like this is enough to cement a transaction. Let them know
that this money is non-refundable, but will be credited at the time of the
closing.
2. Gather all documents from your customer yourself, and don't count the deal
as "sold" until you have these papers in hand. Do not order anything or
progress the loan until you have these. The customer isn't serious about the
offer until they do this.
3. I make the customer emotionally commit to me. Here's how, when I feel
the deal has been "sold", I tell them, " As you know, I have tried my best to
get you the best terms and rate out there for your situation. Doing a mortgage
loan is a highly involved and complicated process. We are dealing with your
finances and I will do the best I can for you, but before I can proceed, I need
to get your total commitment to moving forward, do I have on your honor, that
you are satisfied with the deal I have presented to you and are done shopping
around?"
If they say no or maybe, then I end it right there and tell them, "Ok, well
please call me when you are satisfied, then we can proceed, but in the meanwhile
you may lose this rate. Is that something you want to risk?" Once again, I am
exerting control over the situation and letting them know I am serious about
doing business. The simple fact if they are going to shop you, they will do it
anyway, so better to get it out-front at the beginning.
4. Be sure to gain the spouse's commitment as well. Know who wears the
pants and who is making the decision. I want all parties to be on board before I
proceed.
5. Continually repeat back to the customer why they are doing the
transaction. Reiterate every time you speak with them, the benefits they are
getting out of the deal. Are they saving money per month? Consolidating their
debt? Getting out of renting? Whatever it is, say it back to the borrower over
and over again. You can never oversell them.
6. Consumers are bombarded with offers constantly, on a daily basis. Even
one slightly lower offer of even 1/8 of a percentage point can be enough to make
them leave you. I tell customers to call me before making any final decisions,
or else they will lose the deal. Emphasize that "If a deal sounds too good to be
true, it probably is. Tell them, that "Many firms use teaser rates just to get
you interested, then quickly bait and switch you into another program".
7. On purchase loans, you have less to worry about. If the borrower tries
to leave you, tell them that "They risk losing the house if they switch to
another lender and closing on-time." Purchase contracts are very definite in
terms of dates needed to close by, and there is little flexibility in terms of
changing these dates. Purchase buyers are emotionally invested in their new
house--they're already decorating and painting the rooms in their mind!!! Use
this to your advantage.
8. Be seen as a trusted advisor throughout the process. Make friends with
your borrowers. Add value wherever you can. Keep control over the situation.
Don't let the customer "bully" you. If they walk on you once, they will do it
throughout the entire process and you will lose in the end--not only your
self-esteem but your time and yield spread premium income as well.
These are just a few of the ways I gain commitment from my customers. Save your
next $2,200 to $3,000 in commission and get back that lost deal.
Got an opinion? We want to hear from you. Post your thoughts or comments here in our Mortgage Warrior Forum. Come join the conversation and say hello...onward mortgage warrior!
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