Close More Loans Using a Simple 4 Step Process
You could be the most brilliant marketer in the world, but if you can’t close you’ll be starving and homeless in no time. Use these four steps to turn leads into closed loans.
Build Trust With The Client
The first step in this four step process is to connect with the client. Selling is a people skill, no matter what product is being sold. Selling mortgages is no different. So the first thing you should focus on when you have a new lead or potential customer is to build the relationship - help them feel confident that you are the loan officer they should be doing business with.
While it is always recommended to go with your personal style (as opposed to acting like a robot), here are a few things that might help build trust with a potential customer:
- Establish Common Ground
Ask some simple questions about the borrower’s interests, work, family (if appropriate) and anything else to help you make a connection. Relate the information you receive to your own life. This may sound like a “no-brainer”, but often times loan officers want to jump straight to the loan application. - Talk About Your Qualifications
Some loan officers make the mistake of spending all their trust-building efforts talking up themselves and/or their company. Instead, adapt a strong message about your professionalism and qualification to address the borrower’s mortgage needs. Even new loan officers can do this, but should probably focus on the reputation of their company to begin with, if they have little experience themselves.
Discover and Resolve
This step is one that may be repeated at various times before you end up closing a loan with a new borrower. The first thing you want to do is find out what the customer wants and/or needs.
During this “discovery” stage, you may also find out that the borrower has concerns about you, your company or possibly the decision to refinance or buy a home. Pay attention to signals the borrower gives you and if you sense a concern, don’t hesitate to ask about it. You can’t resolve a concern until you know what exactly the concer is, so ASK FIRST!
Concerns can and will come up at other times, and each time it’s your ability to resolve that concern that may be the difference between you closing a loan with this borrower or not. Many top producing loan officers make a list of common objections that come up along with effective resolutions. If you are new, this might be a good practice to mimic.
Make an Invitation
This is the step where you ask the potential customer to act. Be specific and ask a yes or no question. For example, “Mrs. Borrower, I have an application right here that we can fill out over the phone, which will take 5 to 10 minutes. Are you ready to apply?”
It’s that simple. If you get a “no” or any hesitancy then you’ll need to spend some time discovering and resolving the borrower’s objections. Otherwise, you’re on your way to another closed loan!
Follow Up
This step is huge. It can’t be ignored, forgotten or underestimated. You aren’t in the clear once you have taken an application. Okay, you may be with some clients, but with most you will need to do some follow up until the loan actually closes and funds.
Some loan officers call each borrower in their pipeline on a daily basis. Others call weekly. You should do whatever fits with your personal style and is the most effective. But, definitely DO IT! Losing touch with your borrower gives the competition a chance to sneak in and take business from you. Don’t let that happen.
This four step process has been around as long as people have been selling stuff to other people. Why? Because it works. Think about how you approach each potential customer, apply the steps listed here and you will see an increase in your closing ratio. If you don’t, analyze what areas you might be weak in and practice. Now go close some loans!