USDA has come with some small changes to their program, but overall, it is still the best “bang for your buck!”
With the market changing so frequently, I thought it would be a good idea to educate you on the changes to this program so you can better educate your clients and have just more knowledge about the overall program. So here is what changed:
Monthly Mortgage Insurance– Before the end of September 2011, the USDA program did not include monthly mortgage insurance in their payments. Now, effective October 1, 2011, there is a small amount of monthly mortgage insurance that is required in the payment each month. The factor for determining how much is .3%. In comparison to all other programs, this is still very very cheap! For example, on a $150,000 loan, the monthly mortgage insurance would only be $37.50/month. Now compare that to FHA’s mortgage insurance factor of 1.15%, which would be $143.75/month, it is still saving you over $106/month. This is huge in qualifying!!! Your borrower essentially has about $30,000 to $45,000 more buying power when it comes to sales price! HUGE!!!!
Up Front Fee - A lot of the government programs charge what they call an upfront fee. The best way to view these fees are like upfront insurance. They are charging you this fee in case you default, like the millions of home owners who have before with this product. Essentially, you are paying for the transgressions of others! With these fees you have 2 options, you can either pay for it in cash (which no one ever does), or you can finance it into the loan amount. When you finance it in, this will increase your payment by a dollar or two but nothing crazy. USDA used to charge an upfront guaranteed fee of 3.5%, but they have reduced that to only 2%, but added the monthly mortgage insurance to make up for the difference, making the situation for the government even better.
Now this last change was not really posted, but with doing USDA everyday for almost every single client, I have found this change to be very common. USDA makes you run each loan through an automated underwriting system they call GUS. Now GUS focuses on a couple of main things: Property location eligibility, income eligibility, and the hidden front and back end debt ratios. Property location is to make sure the house being purchased is in an eligible area (All of Sussex County is), and there is a website where you can check every property. The income eligibility is to make sure the borrowers do not make more money than the limits allow. There is a website to double check this as well. The Front and back end debt ratios are the tricky part. I have found out that they recently updated the GUS system and made the ratios tighter, meaning they lowered how high you can take them. The front end is the difference maker! They have lowered it to 35%, no if ands or buts about it! This makes it very difficult if you exceed this because you either have to lower the interest rate to get the payment lower or find more income, both options suck!
With these 2 (plus 1 hidden) changes, it will have a significant impact on your borrowers ability to purchase and qualify! Make sure your lender is on top of these changes because it only takes one mess up to lose a client and/or referral for life!
Tuesday, October 11, 2011
Monday, October 10, 2011
The Time to Move Forward Is Now!
Stop dwelling on the mortgage meltdown and what you think is standing in your way and go out and starting moving forward with your business today! Start trying to figure out how you plan on moving forward and the steps to get there. Here are a few steps you should consider taking:
1. Join an Association - Standing together is the best way to get things accomplished and a voice heard. You will be able to voice your opinions, hear what others in your profession are thinking, and brainstorm how to help your industry, as professionals, grow! By joining associations, you can also bounce ideas off others professionals and see what others are doing to help grow there business and move forward.
2. Educate Your Partners – Holding seminars is the single bet way to educate your partners. You have complete control on what to discuss and how to relay the message you are trying to deliver. For example, I would hold a seminar for agents and update them on products, programs, and upcoming or changing guidelines so they are aware of what’s going on and can prepare their clients accordingly. The more information an agent has the better they can deliver and prep their clients for future business (hopefully you receive). Also, if seminars are just not your thing yet, try sending out links to helpful programs or business ideas. In my business, I would send out to realtors about Down Payment Assistance programs and how they can recommend this to their clients to help with the cost of buying a home. This makes the agent seem very knowledgeable and who doesn’t like free money right? When they look good, so do you!
3. Mentor Others – Whatever your strengths are (writing, blogging, data management, talking), you need to share these skills with others. By doing this within your industry, you will help rebuild it. I know this seems like helping your competition become as strong as you (which is one reason I do not focus too much on this area), but it is nice to be known as someone who helps and can be relied upon within your own industry. I.E. I would help a first time home buyer seminar or go to a local high school and teach the local youth and financial responsibility and how to keep track of their finances.
4. Educate Yourself – Keeping up on changing products and programs is one way to become a leader in your industry. How nice would it be to be thought of as
”The To Go To Person” in your profession? This is a great way to create more business, but remember when you learn it, you must share it or they will never know you do! Also, try to ask for training materials and continual education courses to attend. This is a great way to refresh the information you already learned and focus in on other stuff you don’t.
The industry is changing everyday, so you need to ask yourself this, “Are you moving with it or being left behind?” The choice is yours!
1. Join an Association - Standing together is the best way to get things accomplished and a voice heard. You will be able to voice your opinions, hear what others in your profession are thinking, and brainstorm how to help your industry, as professionals, grow! By joining associations, you can also bounce ideas off others professionals and see what others are doing to help grow there business and move forward.
2. Educate Your Partners – Holding seminars is the single bet way to educate your partners. You have complete control on what to discuss and how to relay the message you are trying to deliver. For example, I would hold a seminar for agents and update them on products, programs, and upcoming or changing guidelines so they are aware of what’s going on and can prepare their clients accordingly. The more information an agent has the better they can deliver and prep their clients for future business (hopefully you receive). Also, if seminars are just not your thing yet, try sending out links to helpful programs or business ideas. In my business, I would send out to realtors about Down Payment Assistance programs and how they can recommend this to their clients to help with the cost of buying a home. This makes the agent seem very knowledgeable and who doesn’t like free money right? When they look good, so do you!
3. Mentor Others – Whatever your strengths are (writing, blogging, data management, talking), you need to share these skills with others. By doing this within your industry, you will help rebuild it. I know this seems like helping your competition become as strong as you (which is one reason I do not focus too much on this area), but it is nice to be known as someone who helps and can be relied upon within your own industry. I.E. I would help a first time home buyer seminar or go to a local high school and teach the local youth and financial responsibility and how to keep track of their finances.
4. Educate Yourself – Keeping up on changing products and programs is one way to become a leader in your industry. How nice would it be to be thought of as
”The To Go To Person” in your profession? This is a great way to create more business, but remember when you learn it, you must share it or they will never know you do! Also, try to ask for training materials and continual education courses to attend. This is a great way to refresh the information you already learned and focus in on other stuff you don’t.
The industry is changing everyday, so you need to ask yourself this, “Are you moving with it or being left behind?” The choice is yours!
Friday, October 7, 2011
Fighting Re-Aging… And I’m Talking About Your Credit Here!
Your credit is the lifeline to homeownership! Making sure it is not improperly impacted by debt, especially old debt, is a very real concern and issue most people are pressed with everyday. Re-Aging debt occurs more often nowadays with all of the debt collectors going after every penny they can obtain. Being a loan officer, this is one issue I make my clients aware of and help prevent and detect the malpractice from occurring.
Re-aging of debt can best be described as when you have outstanding debt either from medical or other creditors and they post the delinquency to the credit reporting agencies and it appears on your credit. Then after it has already negatively affected your credit scores, they either sell it off to another collection agency and it comes up as a new negative trade-line or they do not sell the debt off but wait till you’re trying to purchase something and they quickly report it and create a negative trade-line.
When a consumer defaults on a debt and is report to a credit-reporting agency, the default generally remains on the consumers credit file for seven years and 180 days as permitted by FCRA. The Fair Credit Reporting Act is supposed to be the main line of protection, but with the debt collectors manipulating when the first late payment was actually reported, it is hard for the agency to take action on these debt collectors. What is supposed to trigger when they start and have to end the reporting of the debt is when the first late payment occurred. But determining when this happened is when the re-aging of the debt happens. The abuse can really take an effect to the clients score!
The most common criminals of this abuse are collection agencies (Debt-Buying Companies). When past due debt obligations are sold repeatedly this makes the re-aging effect occur over and over again every time is it sold. The sales of the debt do not give anyone the right to improperly place these new negative trade lines, but it does not stop them from doing so!
Another very common practice for debt collectors is when the debt holder holds back on placing the negative trade line until its research department determines/indicates that the client is trying to buy a house. They do this by purchasing lists of people who have applied for mortgages and comparing them to their own data sheets. If home buying activity is determined, they debt collectors then place the negative trade-lines against the person hoping they have to pay for them first in order to obtain financing for the mortgage. Due to tightening lending standards, most mortgage companies require these debts to be paid off in order to obtain the mortgage. Further, this will have a negative impact on the clients credit score. This creates a situation where the client has to pay the debt holder or negotiate the terms of it to secure the mortgage.
To help prevent these practices from happening to you and your clients, people must monitor their credit reports and what is reporting and what is outstanding. It is imperative that people check their credit reports once a year to make sure nothing is going to stand in the way of their financial goals. Keep copies of any outstanding debt and any proof of when it went delinquent and then use this documentation to request removal from your credit report.
By helping your clients fight the good old fight against creditors and their mischievous methods of re-aging credit, you can keep your clients safe and on the path to financial success!
Re-aging of debt can best be described as when you have outstanding debt either from medical or other creditors and they post the delinquency to the credit reporting agencies and it appears on your credit. Then after it has already negatively affected your credit scores, they either sell it off to another collection agency and it comes up as a new negative trade-line or they do not sell the debt off but wait till you’re trying to purchase something and they quickly report it and create a negative trade-line.
When a consumer defaults on a debt and is report to a credit-reporting agency, the default generally remains on the consumers credit file for seven years and 180 days as permitted by FCRA. The Fair Credit Reporting Act is supposed to be the main line of protection, but with the debt collectors manipulating when the first late payment was actually reported, it is hard for the agency to take action on these debt collectors. What is supposed to trigger when they start and have to end the reporting of the debt is when the first late payment occurred. But determining when this happened is when the re-aging of the debt happens. The abuse can really take an effect to the clients score!
The most common criminals of this abuse are collection agencies (Debt-Buying Companies). When past due debt obligations are sold repeatedly this makes the re-aging effect occur over and over again every time is it sold. The sales of the debt do not give anyone the right to improperly place these new negative trade lines, but it does not stop them from doing so!
Another very common practice for debt collectors is when the debt holder holds back on placing the negative trade line until its research department determines/indicates that the client is trying to buy a house. They do this by purchasing lists of people who have applied for mortgages and comparing them to their own data sheets. If home buying activity is determined, they debt collectors then place the negative trade-lines against the person hoping they have to pay for them first in order to obtain financing for the mortgage. Due to tightening lending standards, most mortgage companies require these debts to be paid off in order to obtain the mortgage. Further, this will have a negative impact on the clients credit score. This creates a situation where the client has to pay the debt holder or negotiate the terms of it to secure the mortgage.
To help prevent these practices from happening to you and your clients, people must monitor their credit reports and what is reporting and what is outstanding. It is imperative that people check their credit reports once a year to make sure nothing is going to stand in the way of their financial goals. Keep copies of any outstanding debt and any proof of when it went delinquent and then use this documentation to request removal from your credit report.
By helping your clients fight the good old fight against creditors and their mischievous methods of re-aging credit, you can keep your clients safe and on the path to financial success!
Thursday, October 6, 2011
When Your Past Clients Become Distressed
For many Americans, the “American Dream” is not a “Dream” anymore, but has become a constant struggle and pain. With high unemployment and home values plummeting all over the United States, many Americans are having a difficult time just keeping up with the payments. When this happens, it is crucial that real estate agents and loan officers come to the aid for their past clients who see themselves in these situations.
When your past clients see themselves in these situations, agents and Loan Officer’s need to come to the forefront and should earnestly attempt to help. This will not only build your reputation as a caring professional, but also will increase your chances of repeat business and referrals.
The best way to tackle this is to establish a network of real estate professionals who specialize in the distressed property market/situation. Make sure you get to know the agents and how they like to handle things, especially in relation to short sales and foreclosures.
You will then need to identify the clients needs/wants in regards to their home. If they choose to stay, then the proper steps need to be taken i.e. Loan Modification. Now I am not a bigger believer in the Loan Modification process. I personally think its crap, never works, and only pushes the debt further into the future providing very little short term relieve (But that’s just my opinion). You must make sure the homeowner has proper expectations for what the modification process will entail. Make sure they do not pay any money upfront! Most real modification companies will work for free without any upfront costs. The process is going to be a bit lengthy and entail a lot of paperwork, so its not going to happen overnight, so SET REALISTIC EXPECATATIONS will your clients.
Now if the modification does not work or they are okay with relocating to another place, then a Short Sale is the next best thing! When the real estate agent works with the client, they should normally try to sell the house for less than the competing listings. This should draw more interest and attract more buyers. With the abundance of short sales in the market today, it is imperative that the LO and real estate agent work together with the client to keep fees at a minimum and making the process less complicated for the client.
If anything is crucial for the client in the short sale or even the modification process, it is COMMUNICATION! The fear of the unknown always seems to get bigger and bigger when communication breaks down, and this can lead to doubt and most commonly frustration. By keeping the lines of communication open, you really get to strengthen your relationships with the client and the real estate agent(s). Also, look for online tools and resources to help make the process run smoother ( like a document drafter), this will cut down the time required for the process and also help the real estate agent be able to spend more time attracting buyers and sell more houses.
By aligning yourself with the proper professionals, you can really help your business grow and establish those strong relationships. The best agents are honest, trustworthy and qualified, all qualities you need to succeed! So I ask you, who are you aligned with?
When your past clients see themselves in these situations, agents and Loan Officer’s need to come to the forefront and should earnestly attempt to help. This will not only build your reputation as a caring professional, but also will increase your chances of repeat business and referrals.
The best way to tackle this is to establish a network of real estate professionals who specialize in the distressed property market/situation. Make sure you get to know the agents and how they like to handle things, especially in relation to short sales and foreclosures.
You will then need to identify the clients needs/wants in regards to their home. If they choose to stay, then the proper steps need to be taken i.e. Loan Modification. Now I am not a bigger believer in the Loan Modification process. I personally think its crap, never works, and only pushes the debt further into the future providing very little short term relieve (But that’s just my opinion). You must make sure the homeowner has proper expectations for what the modification process will entail. Make sure they do not pay any money upfront! Most real modification companies will work for free without any upfront costs. The process is going to be a bit lengthy and entail a lot of paperwork, so its not going to happen overnight, so SET REALISTIC EXPECATATIONS will your clients.
Now if the modification does not work or they are okay with relocating to another place, then a Short Sale is the next best thing! When the real estate agent works with the client, they should normally try to sell the house for less than the competing listings. This should draw more interest and attract more buyers. With the abundance of short sales in the market today, it is imperative that the LO and real estate agent work together with the client to keep fees at a minimum and making the process less complicated for the client.
If anything is crucial for the client in the short sale or even the modification process, it is COMMUNICATION! The fear of the unknown always seems to get bigger and bigger when communication breaks down, and this can lead to doubt and most commonly frustration. By keeping the lines of communication open, you really get to strengthen your relationships with the client and the real estate agent(s). Also, look for online tools and resources to help make the process run smoother ( like a document drafter), this will cut down the time required for the process and also help the real estate agent be able to spend more time attracting buyers and sell more houses.
By aligning yourself with the proper professionals, you can really help your business grow and establish those strong relationships. The best agents are honest, trustworthy and qualified, all qualities you need to succeed! So I ask you, who are you aligned with?
Wednesday, October 5, 2011
Separating Yourself To Thrive
How do you separate yourself from your competition? Please don’t tell me it’s because you show up to work everyday and answer your phone….really??? This is not different, this is something expected! If you think it’s from entitlement…THINK AGAIN! Just because you have been in the business for over 10 years does not by any means make you deserve other peoples business or referrals. It is time to step out of that safe box and step into reality and the constantly changing times!
So what does it take then to thrive in the changing market? I will try and break it down into 5 groups (big help from Dale Vermillion on this) to help simplify things for you:
1. Diversify Your Marketing - Rates are great right now, but we all know they have to go up sometime, so you need to not focus entirely on just one thing when you are marketing because soon those leads will dry up. Work on getting purchasing leads from aggregator sources. This will allow for a steady flow of leads coming and you can buy them at your convenience. Also, make sure not to forget about your past clients and referral leads. You need to make sure you are in constant contact with them via phone, mail and email. Establishing and re-establishing the relationship with each client will make sure the leads are coming in and they do not forget about you! Lastly, reach out to other third party sources to retrieve leads. For example, as a loan officer, I will reach out to realtors, financial planners and CPA’s to establish relationships and hopefully build a strong referral network.
2. Quit Selling Rate/Price - This makes you ordinary! Nothing unique except you are quoting a rate/price. Not only by doing this do you make a horrible impression, but you allow the person to obtain a bargaining chip they can use elsewhere and then you essentially have pushed them to go shop you around. You must not make this mistake! As we all know in the mortgage business, just because the rate is better does not mean it is the perfect fit for the client!
3. Build Relationships – With the media making everyone in our business seem like crooks, you need to make sure you have built strong relationships based trust and honesty. These two characteristics are very strong because the referral person knows you will take good care of their client and you can get the job done! As we all know, if you refer someone to a person and they do a horrible job, it in turn, makes you look even worse!
4. Make A Difference - Make sure you meet not only the client’s short term needs but help them focus, establish, and head towards their long term goals as well. This will help you truly separate yourself from your competition because most people only focus on the short term and what is affecting them now, not what could or will happen in the future.
5. Focus on Today – Plan and simple, do not dwell on past success, this creates negative thought process and stops you from pressing forward!
Nowadays people choose the easiest and safest forms of marketing, but this is not helping them separate themselves from their competition and thrive in the changing market. Go over the 5 forms and see if you are making all the appropriate efforts and begin separating yourself from your competition today!
So what does it take then to thrive in the changing market? I will try and break it down into 5 groups (big help from Dale Vermillion on this) to help simplify things for you:
1. Diversify Your Marketing - Rates are great right now, but we all know they have to go up sometime, so you need to not focus entirely on just one thing when you are marketing because soon those leads will dry up. Work on getting purchasing leads from aggregator sources. This will allow for a steady flow of leads coming and you can buy them at your convenience. Also, make sure not to forget about your past clients and referral leads. You need to make sure you are in constant contact with them via phone, mail and email. Establishing and re-establishing the relationship with each client will make sure the leads are coming in and they do not forget about you! Lastly, reach out to other third party sources to retrieve leads. For example, as a loan officer, I will reach out to realtors, financial planners and CPA’s to establish relationships and hopefully build a strong referral network.
2. Quit Selling Rate/Price - This makes you ordinary! Nothing unique except you are quoting a rate/price. Not only by doing this do you make a horrible impression, but you allow the person to obtain a bargaining chip they can use elsewhere and then you essentially have pushed them to go shop you around. You must not make this mistake! As we all know in the mortgage business, just because the rate is better does not mean it is the perfect fit for the client!
3. Build Relationships – With the media making everyone in our business seem like crooks, you need to make sure you have built strong relationships based trust and honesty. These two characteristics are very strong because the referral person knows you will take good care of their client and you can get the job done! As we all know, if you refer someone to a person and they do a horrible job, it in turn, makes you look even worse!
4. Make A Difference - Make sure you meet not only the client’s short term needs but help them focus, establish, and head towards their long term goals as well. This will help you truly separate yourself from your competition because most people only focus on the short term and what is affecting them now, not what could or will happen in the future.
5. Focus on Today – Plan and simple, do not dwell on past success, this creates negative thought process and stops you from pressing forward!
Nowadays people choose the easiest and safest forms of marketing, but this is not helping them separate themselves from their competition and thrive in the changing market. Go over the 5 forms and see if you are making all the appropriate efforts and begin separating yourself from your competition today!
Tuesday, October 4, 2011
ARE YOU KEEPING YOUR CLIENTS SAFE?
Protecting your clients against identity protection in an everyday job! Identity thieves have adapted many new techniques and methods and they are changing all the time, which makes your knowledge and awareness of these techniques very important!
Remaining up to date on the latest trends and methods is a very difficult job. You are not going to be able to help stop every instance of identity theft, but prevention and making the clients aware of it and how it can happen is the key! On the frontline of identity theft attacks should be your mortgage loan originator providing defense and becoming a main leader in helping your prevent the identity protection.
My main way to prevent identity theft is to understand how it can happen and being able to identity the different forms it comes in. Do not be blinded here! Identity theft is not solely on financial identity, it can come in other forms as well. Medical, drivers license, social security and Criminal identity fraud are four other types of identity theft that can take place.
Medical – Stealing identity to obtain medical insurance, treatment, or prescriptions in your name.
Drivers License – Stealing your identity and using it in traffic related incidents.
Social Security – Stealing your social security number in order to obtain employment. This can often lead to further damage to credit and taxes.
Criminal – Stealing your identity and providing it to law enforcement upon arrest.
These forms of identity theft are very common, so do not be focused on just the financial aspect of identity theft because these forms are most popular and becoming harder to detect. So you know are asking “How do I prevent this from happening to me?” BE AWARE AND PROTECT YOUR PERSONAL INFORMATION! Yes that might sound very simple and almost stupid, but it’s the truth! You will be amazed as to how people treat and handle their financial and personal information. They throw it away, they give it out over the phone, they send it via fax, and they trust when they should be skeptical! Remember, an identity thief does not have to have all the pieces of your financial information to commit and subdue you to identity theft. Sometimes they will mix pieces of your accurate personal information in with a fictitious identity, causing much confusion and still having success in their attempt to steal and falsely use your identity.
Being a mortgage loan officer, we are here to help you and protect you at the same time with the biggest financial investment of your life! Identity theft is something no one should have to go through, but that does not mean it does not exist and can’t happen to you. Prevention starts and ends with how you handle and distribute your financial information. Loan officers need to strive to make sure every single borrower’s financial and identity is well protected and they have either implemented and/or developed methods to make this possible! Protecting your clients is a very prominent key to building your business! I protect my client’s identity, do you?
Remaining up to date on the latest trends and methods is a very difficult job. You are not going to be able to help stop every instance of identity theft, but prevention and making the clients aware of it and how it can happen is the key! On the frontline of identity theft attacks should be your mortgage loan originator providing defense and becoming a main leader in helping your prevent the identity protection.
My main way to prevent identity theft is to understand how it can happen and being able to identity the different forms it comes in. Do not be blinded here! Identity theft is not solely on financial identity, it can come in other forms as well. Medical, drivers license, social security and Criminal identity fraud are four other types of identity theft that can take place.
Medical – Stealing identity to obtain medical insurance, treatment, or prescriptions in your name.
Drivers License – Stealing your identity and using it in traffic related incidents.
Social Security – Stealing your social security number in order to obtain employment. This can often lead to further damage to credit and taxes.
Criminal – Stealing your identity and providing it to law enforcement upon arrest.
These forms of identity theft are very common, so do not be focused on just the financial aspect of identity theft because these forms are most popular and becoming harder to detect. So you know are asking “How do I prevent this from happening to me?” BE AWARE AND PROTECT YOUR PERSONAL INFORMATION! Yes that might sound very simple and almost stupid, but it’s the truth! You will be amazed as to how people treat and handle their financial and personal information. They throw it away, they give it out over the phone, they send it via fax, and they trust when they should be skeptical! Remember, an identity thief does not have to have all the pieces of your financial information to commit and subdue you to identity theft. Sometimes they will mix pieces of your accurate personal information in with a fictitious identity, causing much confusion and still having success in their attempt to steal and falsely use your identity.
Being a mortgage loan officer, we are here to help you and protect you at the same time with the biggest financial investment of your life! Identity theft is something no one should have to go through, but that does not mean it does not exist and can’t happen to you. Prevention starts and ends with how you handle and distribute your financial information. Loan officers need to strive to make sure every single borrower’s financial and identity is well protected and they have either implemented and/or developed methods to make this possible! Protecting your clients is a very prominent key to building your business! I protect my client’s identity, do you?
Thursday, October 14, 2010
AT ITS PEAK!!!
When is the best time to seal the deal? The answer is not always as clear cut on each transaction, but this one common theme holds steady day in and day out…..”Seal the Deal when the clients interest is at it Peak!”
Ever wonder why it is important to settle loans or handle transactions as quickly as possible? You have to make sure you are maximizing your client’s wants and interest, but within a time line. You have to focus on making the sale when your client’s interest is at its peak! At this point of time, your potential clients are seeing what they want, that they can achieve it, and you are the one that can help them get it! The more time your potential clients have throughout the process, the more doubt and confusion can clout their focus and desires. Questions and concerns are part of the process, we all understand and anticipate that, but like I said before, its part of the “process”, which means within the transaction, not before it even begins.
Clients are protected nowadays with many laws, Reg Z & X, TIL disclosures, GFE disclosures and tolerances, so proceeding with caution is still always a good idea, but proceeding with fear is what we have to lead our potential clients and consumers away from feeling. Maximizing a client’s interest point is key to delivering a solid pipeline of clients, and then the rest is left up to you to deliver the exceptional customer service that will lead to more referrals down the line! Are you up for the challenge?
Interest at its Peak can only be achieved by constant contact! You have to be involved with your clients from day one, answering questions and being there for anything anticipated or surprising throughout the process. By establishing your comfort level and capitalizing on your clients interests and wants, you increase the ability to sell and satisfy your clients on many different levels!
Here is my advice to you: Stop sitting around and waiting for your clients to call you back… Pick up the phone, follow up, give updates, and give other options and suggestions! Make your clients aware of what is out there, what you can do for them, and how you can help them achieve it! Its all about making them aware of what is going on and how they can get there (with your help of course!) Go get it!
Ever wonder why it is important to settle loans or handle transactions as quickly as possible? You have to make sure you are maximizing your client’s wants and interest, but within a time line. You have to focus on making the sale when your client’s interest is at its peak! At this point of time, your potential clients are seeing what they want, that they can achieve it, and you are the one that can help them get it! The more time your potential clients have throughout the process, the more doubt and confusion can clout their focus and desires. Questions and concerns are part of the process, we all understand and anticipate that, but like I said before, its part of the “process”, which means within the transaction, not before it even begins.
Clients are protected nowadays with many laws, Reg Z & X, TIL disclosures, GFE disclosures and tolerances, so proceeding with caution is still always a good idea, but proceeding with fear is what we have to lead our potential clients and consumers away from feeling. Maximizing a client’s interest point is key to delivering a solid pipeline of clients, and then the rest is left up to you to deliver the exceptional customer service that will lead to more referrals down the line! Are you up for the challenge?
Interest at its Peak can only be achieved by constant contact! You have to be involved with your clients from day one, answering questions and being there for anything anticipated or surprising throughout the process. By establishing your comfort level and capitalizing on your clients interests and wants, you increase the ability to sell and satisfy your clients on many different levels!
Here is my advice to you: Stop sitting around and waiting for your clients to call you back… Pick up the phone, follow up, give updates, and give other options and suggestions! Make your clients aware of what is out there, what you can do for them, and how you can help them achieve it! Its all about making them aware of what is going on and how they can get there (with your help of course!) Go get it!
Monday, October 4, 2010
So Your Business is Good….For Now!
Rates are great! Everyone is calling because they want or most importantly need to save a few bucks every month. BUT, what happens when the rates start to creep up???
Loan originators need to start looking at what will happen in the following months, and stop looking at their full pipelines lines and radiating in the glow of this years income. If I were to tell you that home values are down 26% Nationwide….what would you respond with? If its not “Sorry I cant talk because I have to call every client to let them know this!” then you are missing the boat my friend! For example, if you wanted to buy a car 3 months ago, and it was priced at $25,000, and then its price dropped 26% to $18,500 wouldn’t you like to know? Don’t you think that the car salesman will definitely be blowing up your cell phone to let you know this news??!!! So why aren’t you letting your clients know this??
Realtors…let every prospect in your book know that the deals are there and you have someone who can make their homeownership dreams come true!
Builders…start thinking of new incentives (People LOVE free stuff) and be targeting new groups of potential clients….maybe current single wide owners who own their land?? Just an idea!
Financial Planners…any client coming in looking long term or even short term, a chance to lower their monthly mortgage payment or better yet, consolidate high interest debts, don’t you agree that this is worth taking a look at? Your clients should never turn down a free financial check up, regardless what finance it is referring to!
Accountants…Your season are almost here, so you know you will be seeing tons of mortgage statements! Why not be sending your clients to someone you trust that will also make you look even better when they lower your clients interest rate into the 4%’s, free up monthly income, and maybe even help them pay you on time this year for preparing their taxes!!
No matter what profession you are in and no matter what type of cliental you service, a free analysis of your clients or potential clients financials can really go a long way! Stop fixating on what you are doing right or today, and start thinking about what you are not doing and maybe should try to get ahead of the competition!
Loan originators need to start looking at what will happen in the following months, and stop looking at their full pipelines lines and radiating in the glow of this years income. If I were to tell you that home values are down 26% Nationwide….what would you respond with? If its not “Sorry I cant talk because I have to call every client to let them know this!” then you are missing the boat my friend! For example, if you wanted to buy a car 3 months ago, and it was priced at $25,000, and then its price dropped 26% to $18,500 wouldn’t you like to know? Don’t you think that the car salesman will definitely be blowing up your cell phone to let you know this news??!!! So why aren’t you letting your clients know this??
Realtors…let every prospect in your book know that the deals are there and you have someone who can make their homeownership dreams come true!
Builders…start thinking of new incentives (People LOVE free stuff) and be targeting new groups of potential clients….maybe current single wide owners who own their land?? Just an idea!
Financial Planners…any client coming in looking long term or even short term, a chance to lower their monthly mortgage payment or better yet, consolidate high interest debts, don’t you agree that this is worth taking a look at? Your clients should never turn down a free financial check up, regardless what finance it is referring to!
Accountants…Your season are almost here, so you know you will be seeing tons of mortgage statements! Why not be sending your clients to someone you trust that will also make you look even better when they lower your clients interest rate into the 4%’s, free up monthly income, and maybe even help them pay you on time this year for preparing their taxes!!
No matter what profession you are in and no matter what type of cliental you service, a free analysis of your clients or potential clients financials can really go a long way! Stop fixating on what you are doing right or today, and start thinking about what you are not doing and maybe should try to get ahead of the competition!
Monday, September 20, 2010
ENOUGH IS ENOUGH!!
STOP BELIEVING THE INTERNET OR RADIO ADS ON INTEREST RATES!! Call a local mortgage originator to see your real options!
When lenders online are telling you that they can get you these historically low interest rates at 3.99% or even the low 4%’s, be ready to pay for it! Lenders are giving you the old “Bait and Switch” tactic! They reel you in within enticing ideas and monthly savings figures, and then when it comes down to it, there is some circumstance that disqualifies you from obtaining that “GREAT” offer. This is more common now than ever before! YES, rates are at historic lows, but remember, no one does loans for free, so it there are selling the rat to you at the bottom, you can bet you will be paying for the income that is needed to be generated from doing your loan.
Let’s just throw a couple of names out there…..”Quicken Loans”, “Lending Tree”
Now let’s see what they offer….
• Customer service reps that read from scripts
• Reps that have been in the industry for no longer than a year, selling something
they barely understand
• Reps that are not familiar with your market or community
• People that have no interest in your loan
• Denial of your loan but give ZERO guidance on how to fix your situation
• Do not review your credit with you
• ZERO one on one time and analysis of your loan and financial situation
When you are assessing what to do with the single biggest financial investment in your life, wouldn’t you want to know who you are dealing with? Wouldn’t you want to know where you could go or call for advice or questions you might have during or even AFTER the loan process? How about being able to call someone and not have to go through an automated system, but get someone directly?
America got into this housing mess with mortgages being handled this exact way! Borrowers need to know what they are getting themselves into, how to plan for it, how to handle it, and what to expect month in and month out! When you have someone, an actual person in front of you, questions are the easiest to be asked and answers obtained, which SHOULD ALWAYS be part of the process!
Mortgages are a very tricky process and overwhelming at times for many clients, so it’s smart to make sure borrowers are going through the proper steps in preparing for this huge decision! I am always here for your questions or to review anything you are looking to do! A second set of eyes is never bad!
When lenders online are telling you that they can get you these historically low interest rates at 3.99% or even the low 4%’s, be ready to pay for it! Lenders are giving you the old “Bait and Switch” tactic! They reel you in within enticing ideas and monthly savings figures, and then when it comes down to it, there is some circumstance that disqualifies you from obtaining that “GREAT” offer. This is more common now than ever before! YES, rates are at historic lows, but remember, no one does loans for free, so it there are selling the rat to you at the bottom, you can bet you will be paying for the income that is needed to be generated from doing your loan.
Let’s just throw a couple of names out there…..”Quicken Loans”, “Lending Tree”
Now let’s see what they offer….
• Customer service reps that read from scripts
• Reps that have been in the industry for no longer than a year, selling something
they barely understand
• Reps that are not familiar with your market or community
• People that have no interest in your loan
• Denial of your loan but give ZERO guidance on how to fix your situation
• Do not review your credit with you
• ZERO one on one time and analysis of your loan and financial situation
When you are assessing what to do with the single biggest financial investment in your life, wouldn’t you want to know who you are dealing with? Wouldn’t you want to know where you could go or call for advice or questions you might have during or even AFTER the loan process? How about being able to call someone and not have to go through an automated system, but get someone directly?
America got into this housing mess with mortgages being handled this exact way! Borrowers need to know what they are getting themselves into, how to plan for it, how to handle it, and what to expect month in and month out! When you have someone, an actual person in front of you, questions are the easiest to be asked and answers obtained, which SHOULD ALWAYS be part of the process!
Mortgages are a very tricky process and overwhelming at times for many clients, so it’s smart to make sure borrowers are going through the proper steps in preparing for this huge decision! I am always here for your questions or to review anything you are looking to do! A second set of eyes is never bad!
Wednesday, September 8, 2010
Cleaning Up the Mess!!
Have you been turned down by your mortgage lender? Have you been denied a refinance of your current mortgage or can not seem to be able to obtain financing at all? YOU ARE NOT ALONE! But what you choose to do from there is what will separate you from being financially smart or lazy!
If one lender says “NO” to your mortgage financing needs, that does not mean all lenders will look or treat your loan the same way! I am finding out more and more, that even though 65% of the mortgage financing professionals out there disappeared, that the remaining 35% still are not as good at their job as they should be in assisting clients with their mortgage financing needs. You still have the online companies shooting out vague information to your potential clients, filling their heads with huge promises and coming up short at closing! “Bait and switch” has always been a definite when it comes to online lenders and especially when you can not deal with someone who is local. Best way to treat this is that, if you have a feeling in your stomach that something is just too good to be true, trust your gut, because it is!
Cleaning up the mess that other lenders have left behind seems to be the common theme this year! Many borrowers have been led down paths for 2 to 3 months from mortgage originators, only to be let down at the end and confused as to why. Make sure you are asking the correct questions:
• What are the issues on my loan?
• Do all lenders have the same guidelines?
• Is there just one problem or more than one?
• What can I do to fix the issue(s)?
Understanding why your lender is not approving or accepting your loan can do wonders when you try another lender. If you can address the concerns upfront and give the next lender a chance to work around it or figure out how to solve the issue(s) you stand a much greater chance of obtaining your mortgage finance goals! If you feel that you were denied mortgage financing or just want a 2nd opinion, give me a call or shoot me an email and I will be glad to give some insight into your loan!
If one lender says “NO” to your mortgage financing needs, that does not mean all lenders will look or treat your loan the same way! I am finding out more and more, that even though 65% of the mortgage financing professionals out there disappeared, that the remaining 35% still are not as good at their job as they should be in assisting clients with their mortgage financing needs. You still have the online companies shooting out vague information to your potential clients, filling their heads with huge promises and coming up short at closing! “Bait and switch” has always been a definite when it comes to online lenders and especially when you can not deal with someone who is local. Best way to treat this is that, if you have a feeling in your stomach that something is just too good to be true, trust your gut, because it is!
Cleaning up the mess that other lenders have left behind seems to be the common theme this year! Many borrowers have been led down paths for 2 to 3 months from mortgage originators, only to be let down at the end and confused as to why. Make sure you are asking the correct questions:
• What are the issues on my loan?
• Do all lenders have the same guidelines?
• Is there just one problem or more than one?
• What can I do to fix the issue(s)?
Understanding why your lender is not approving or accepting your loan can do wonders when you try another lender. If you can address the concerns upfront and give the next lender a chance to work around it or figure out how to solve the issue(s) you stand a much greater chance of obtaining your mortgage finance goals! If you feel that you were denied mortgage financing or just want a 2nd opinion, give me a call or shoot me an email and I will be glad to give some insight into your loan!
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