How do you keep your clients from shopping you?
We’ve all experienced it. You work hard to get the client the loan they want, and finally they sign on the dotted line. With this commitment in hand, you now go to work securing this loan and processing the file. One week later, you get the phone call. You know the type of call I am referring to… This is the call from the client who was only too happy to sign the papers a week ago, now calling to tell you that they found a better rate, or lower closing costs.
How frustrating is this? Why do so many people seem intent on drilling you for every last dollar of income they can? Why can’t people be happy that you are getting them a good deal, and will work hard on their behalf?
Would you believe me if I told you that most of these situations could be avoided completely? It’s true. Most of these scenarios come about because of a certain mindset or lack of education by the loan officer. Let me explain what happens.
After the borrower(s) leaves your office, they are going to be nervous. This is very understandable of course. The key to remedying this situation lies in you understanding what your particular borrowers are nervous about. If they are first or even second time buyers, they may be nervous about the process. Maybe they are worried about finding all of the necessary paperwork involved. Perhaps they have had a bad experience before, and they are concerned about a repeat of that experience?
The bottom line here is that if you know what your clients concerns are, you can put most of those to rest early on, before the shopping starts. In order to accomplish this, you will need to create a script, as well as a process.
No, I’m not going to leave you floating out there on your own. Here is a sample script that has worked well for many loan officers:
“Mr. and Mrs. Client, before we go any further I would like to talk to you about a few things. Earlier in the conversation, I asked you what the 3 most important factors were in regards to getting your new mortgage. You told me that #1 on your list was the interest rate, #2 was the closing costs, and #3 was the type of loan (You didn’t want an adjustable rate). Did I cover everything?
Good. Now let me ask you something. What if I were to tell you that I could secure a loan for you that had a 1.95% interest rate attached to it, and your monthly payment would drop to only $847 per month, would you be happy? Of course! That’s a great monthly payment. However, what if 3 years down the road, you went to refinance your home, and found that your mortgage balance was now several thousand dollars higher than when you opened the loan? How would you feel then?
That’s right; chances are you would be on your way up here to have a little chat with me wouldn’t you? See, the point I’m trying to make here is that even though you suggested that the interest rate was most important to you, it’s easy for us to overlook the fact that it’s the loan structure itself, as well as the honesty and professionalism of the person providing you the mortgage that will typically decide whether or not you are still happy with your loan even after the closing.
You see the average American may go through the mortgage process 4 or 5 times within his or her lifetime. Some more, some less. But a mortgage professional may close hundreds of loans per year. What I’m saying is that if I really wanted to earn a big payday, it would be very simple to make it seem as if you were getting what you wanted, but then to pull a bait and switch maneuver, or have the surprises show up after the closing.
Knowing this, now I would like to make a promise to you right now. I promise to you that when I tell you that you will get something, you will actually get it. There will be no surprises at the closing table. In fact, everything that I discuss with you will be supported in writing. You will not have to worry about hidden fees, costs or subtly increasing interest rates. Is that acceptable to you?
Great. Now I also want to make another promise to you. I promise that I will answer all of your questions in a clear and easy to understand fashion. If at any time, you do not understand something, all you need to do is ask, and I will not gloss over it, or wave you off. My goal is to show you and prove to you that your happiness and comfort ability with the mortgage product selected is important to me. Is this also acceptable?
Good. Moving on, I would now like to show you what will happen after you leave my office today. I will make a record of everything we discussed here today, and make the necessary changes to your file to reflect the loan product that you have selected. From there I will hand the file off to your designated processor, Brandy. Brandy will go to work collecting the necessary information and satisfying the demands of the underwriter, who will also be working on the file. Your closing date has been scheduled for the 23rd of this month, so my goal is to have all of the necessary work done in advance so that I can call you and deliver the good news that your loan is ready to go.
As you can see once I hand this file in with your signature on it, a lot of people will go to work for you. If this loan does not close, none of these people get paid. I tell you this, because I want to make certain that if I make the promises to you that we discussed a few minutes ago, that you can also make the promise to me that I will not get a call from you a week from now telling me that you are sending your loan elsewhere to save $100.
As I mentioned earlier, if you are looking for bargain basement prices, and are comfortable with the bargain basement service that tends to follow, then I need to know this now, before I put work into your file (Allow for response). I feel that I have presented you with a very competitive loan product along with competitive rates and fees. If you feel the same, then we can move forward.”
Yes, I know this seems like a lot of information to take in, but in reality, this script takes less than 2 or 3 minutes to get through. Of course I’m not suggesting that you use this script word for word, but I do recommend that you take the core concepts being presented here and make them your own. Inject your own style and personality.
By having this or a similar heart to heart with your clients early in the process before you begin spending time on the file, you will save yourself a lot of trouble. Sure there will be a select few individuals who place little value on expert service and honesty, but I think you will be surprised just how many of your customers will appreciate your logical approach and straight forwardness, and remain loyal.
Honesty and pride of workmanship have become increasingly rare in today’s marketplace. Demonstrate these concepts to your clients and you will find that this can serve as a great differentiator between you and your competition.
Chad Weber
Average Joe L.O.
www.averagejoelo.com 
