A little while ago the CFPB published a survey entitled “Consumers’ Mortgage Shopping Experience.” I was going to write a commentary immediately following, but decided to take some time to digest the information. I have to admit it came as a surprise that those surveyed indicated only 33% felt the need to shop with multiple lenders AND when they did the predominate reason was they had been denied previously.
Applicants that are comfortable with the loan process and/or have been through it before are more likely to be rate shoppers. First-time buyers are less likely. Twenty percent of the 15,000 surveyed reported using the Internet as a source of information “a lot.” Personally I expected this percentage to be higher ~ how about you?
70% of the people polled relied solely on their lender / mortgage broker for information the other 30% depended upon their real estate agents. The survey did not measure the influence that the real estate agent has on the loan officer selection process. Which I believe to be the predominate factor when this decision is being made.
This is why it is so important to develop, nurture and appreciate key realtor relationships. They are in fact the cornerstone of a purchase business model. Waiting for the phone to ring is not a strategy. Instead it is merely a passive action that often creates peaks and valleys in production levels.
Waiting for the phone to ring is not a strategy. Instead it is merely a passive action that often creates peaks and valleys in production levels.
If you are looking to either increase your market share, conversion ratio or both, it is important to build relationships with those folks you can connect with on a genuine basis. My friend and colleague Mark Raskin with Prime Lending suggests using the following barometer: Would you be willing to have Sunday dinner with this person? If so, move forward with your due diligence.
Our line of work is stressful enough ~ we do not need to be working with people we cannot be in tandem with. I suggest doing some reconnaissance work. Check out the website and social media ~ Do you like what you are hearing? Do you have a desire to get to know this person? If so, move forward with the next step ~ Work towards getting an appointment.
Before scheduling an appointment be clear on who you want to work with. Do they specialize in first-time buyer, investment properties, coastal living etc.? Do they attract borrowers that you will have rapport with? Are they transactional or relational?
Lack of synergy produces unrealistic expectations, non-existent team work, threats, and blaming. Elevated tensions produce an undesirable experience for all concerned and is the number one reason a business remains dependent on one transaction at a time instead of being annuity based i.e. referral driven.
If establishing effective real estate relationships is important to your business development this year, and you would like mentoring in this area, simply Email Me with some tentative times and dates. I am happy to be of assistance.