FSBO's are a great source of new customers for you, and are an often overlooked demographic. Put yourself in their shoes. (If you've ever tried to sell property yourself, you know what I mean). FSBO's are:* An un-tapped resource that many loan officers don't even know about.* Do-it-yourself types that are independent minded.* Fairly knowledgeable about real estate (or at least they think they are!)* Skeptical of outsiders, because they think...more
One question I get asked a lot is "How do I approach Internet mortgage leads?" As you may already know, I generate 90% of my business directly from these types of leads and have found them a great resource for several reasons:* When you call people, they are ready to buy.* People will take your calls and even return your messages, because they actually inputted the lead and it is not a cold call.* You can begin pricing the loan out before you...more
In the past few issues, we've been discussing net branches, and the advantages and disadvantages of this type of loan origination. I covered the reasons why loan officers decide to go out on their own, and what makes one net branch better than another. There are a myriad of choices and literally thousands to choose from! Ultimately, the most important factor in any decision is deciding which company will best serve YOUR needs so you can achieve the level of success you deserve. If the company only talks about themselves, then you know who comes first! They do!!!!In evaluating net branches, I thought it best to let you Sink or Swimmers in on a little secret. It's something that nobody talks about and is one of the best kept secrets in the industry. Certainly the net branches won't tell you, but today I am going to spill the beans. I am going to tell you exactly how the net branches make their money, so you can better understand how you will make YOURS.Net branches make money two ways: 1. They make money from you, the loan officer.OR2. They make money from the bank.Most of the time, it is a combination of the two. Here's how it works.Net branches may make money from you by:*...more
One of my goals is to offer you valuable information that will immediately impact the bottom-line of your mortgage business. What I find lacking in many of the "professional" trade publications out there, is real-life ACTIONABLE information you can take-away today and begin generating actual business from tomorrow.Many of you have emailed me...more
One question I get over and over again from loan officers is "Are internet leads a good source for new business?" My answer always is "Well, yes and no. Proceed with caution and please be careful." What I about to share with you today, is the REAL truth about internet leads, and something no one else in the industry is talking about. You won't...more
Times are tough, there is no doubt about that. Interest rates are inching up and much of the hub-bub of the refinance boom is over. It's the difficult loans that remain, amongst them mostly purchases. It's time to face facts. The A-paper good credit refinance loans are over. There is little chance that you'll be able to convince anyone to refinance, unless they are in extreme dire financial straights and have a tremendous amount of debt to pay off (and in that case, they are probably sub-prime borrowers anyway). Because consumers are interest rate sensitive, even though they are combining total debt into a lower payment, you will be hard-pressed to get them to trade their 5.25% mortgage rate for a 7.5% rate. It simply won't happen.In order to sell these types of refinance loans (combining and rolling debt into the mortgage), you will have to hit the customer's hot buttons. Are they concerned about lowering the monthly out-go? Have they recently had a major financial change in their life? Lost their job? Unexpected bills? Whatever the reason, the customer's immediate concern is the monthly cash flow. They aren't thinking long term, and what this will do to their...more
I get a lot of emails from loan officers who are currently working for a mortgage company, but are looking to advance their career and go out on their own. When they see the kind of money that can be made in this business, it's no wonder they aren't...more
First there was the refinance boom--historic super low rates where every loan was a vanilla slam dunk. Quick and easy cash and the loans sailed through unscathed.Then came the regular ARMs--because rates were rising and people still wanted those low...more
Words are fun. But how you use them can be extremely powerful. They can immediately change your image from a rookie loan officer into a top producer instantly. Here's how; the words you use when dealing with a mortgage prospect affect the...more
Owners of mortgage companies, please forgive me. I'm about to let your employees in on a little secret—they have to option to leave you at any moment. And, many of them will. New career opportunities are abundant in the mortgage industry. And...more
One of the most profitable low-cost investments you can make in your business is to have a mortgage website that not only creates your company's online presence, but also up-sells the customer on your products and services. But finding a website...more
With the present downturn in the market and home prices dropping faster than a lead balloon, I thought it best to share with you what I've learned regarding property appraisals.Here is the cold, hard truth on valuations and what appraisers will NEVER...more