The market of 2023 is unlike those we have seen in previous years. We’re coming out of back to back years where mortgage rates were in the 2s and 3s, and now they’re in the 6s. In a market like this, every lead, loan and basis point counts more than ever for LOs.
Thank you for reading this post, don't forget to subscribe!Dave Savage, Chief Innovation Officer mortgage coach And sale boomerang, described today’s market as a new era in the mortgage business – the advice age. Connecting with people through the internet and social media has never been easier, and LOs should take this opportunity to mentor borrowers and help them achieve financial freedom.
“That’s bullseye, it’s not just getting someone’s social security number so you can run a credit report and get them approved for a loan. That’s not the way to go this year — maybe never again,” he said. “What loan officers do best is financial literacy teachers.”
He recommends that LOs start by reaching out to existing leads and leveraging the relationships they already have.
So where do you start?
communicate through multiple channels
It sounds basic, but the first step is simply to communicate via call, text, or email. In fact, the best route is to use all three.
“The combination of call, text and email is very powerful, and too many loan officers only use one channel,” Savage said. “One needs all three to have a quality conversation on the phone.”
Each consumer will have different preferences, but a mix of all three methods works for most. Savage also suggested sending video or voice memos via text.
ask for help
Once you’ve reached your current sphere of influence, one way to move forward is to simply ask for help, whether it’s asking for referrals or asking to practice some key conversations, Savage said.
For example, he said, call up your renter friends and ask if you can practice your rent-versus-own analysis on them.
“Some of them will say, ‘Wow, I can buy a house,'” he said. “You gotta be good at having the rent-vs-own conversation with people. you will get some clues [and] referral. [Plus,] You will be good at having an important conversation that loan officers should be able to do.
You can use a similar method with homeowner friends to practice your move-up analysis.
“You’re not calling them saying, ‘I’m trying to talk you into moving on.’ You’re asking them to practice something that’s important. And you know, some of them, even want to go up in this market.”
Opening the door to practicing those conversations can lead to new leads.
have an annual review
Another way to take advantage of past leads is to discuss their current mortgage with them.
“The single most valuable conversation you can have with past customers is an annual review or mortgage review conversation of some sort,” Savage said.
It can also be beneficial to partner with a real estate agent for these conversations. Those customers may then be interested in moving or making home improvements, which is another opportunity for the business.
provide value
An important part of having these conversations is making sure you are providing value, not just making a sales call.
“If you can only close one loan and one mortgage, [then] You always feel like a salesperson,” Savage said. “But if you do things like move-up analysis or rent-versus-own analysis, there’s tangible value in negotiating with you. It provides financial literacy and education and helps people achieve financial independence faster.”
The best loan officers solve problems. They ask good questions to understand the borrower’s goals, so they understand what people are excited about, whether it’s getting out of debt faster, building wealth with real estate, or finally owning their current home. to proceed from
“They’re sharing their debt in the context of those larger goals,” Savage said. LOs must “get out there fast, have a servant heart and solve bigger problems than just closing loans on time.”
In fact, Savage recommends completely redoing LO’s work. He added that the most successful loan officers he spoke to — the ones with the best conversion rates — are providing advice on how borrowers can achieve their larger financial life goals.
“The loan officer that provides the most financial literacy within the mortgage experience,” he said.
set up for success
The best way to start these conversations, Savage said, is to reach out to your existing sphere of influence.
“When you’re in a tough market, turning to people you know, like and trust — who want to help you — will always be where the gold is,” Savage said. “When the market is down, would you rather call strangers or friends?”
Reaching out to people you’ve already worked with makes it easy to convert conversations into business development discussions. It’s even more enjoyable than cold calling, Savage said, and a way to set yourself up for success.
“Start your day with some wins,” he said. “Calling your friends into your database is a win-win. You have a higher chance of converting them and it’s giving you energy so that when you have to work hard, you’re upbeat, you’re positive.
