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 provider that does the job effectively is not always easy.To create a mortgage website you have three choices:1. Go it alone and design it yourself.2. Hire a web design firm to custom build a mortgage...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 tell you. Keep these points in mind on every loan you do.1. Cosmetic stuff such as paint, new carpets, window treatments, etc. do not increase appraised value, they only increase the perceived value...more
The news isn't good. Over 30 subprime lenders closed their doors this year so far, with many more to come in the next few months. And, one of the biggest subprime lenders, New Century is ready to bite the dust. With all this and more, I would consider the subprime market effectively "dead" until this shakeout is finally finished.Many of you have asked what can be done to stop the mortgage hemoraging and how you'll be able to survive the new realities of the marketplace. In response, I've put together some of the best feedback and tips from fellow warriors like you.FOR YOUR CURRENT SUBPRIME BORROWERS, HERE ARE A FEW IDEAS: 1. Try to restructure their financing arrangements. If it's a purchase, will seller carry some of the closing costs or reduce the price? If you can rework the DTI and LTV on the loan you might have a chance.2. Can you consolidate any debt on the loan? Can you get rid of seconds and HELOCS paid off at the table? How about paying off any other debt too? This will help your debt ratios.3. Put borrowers on hold until their credit score increases. Can they wait a few months while they sort themselves out? A better score would greaten their chances of getting...more
In my last article, I covered some of the reasons why loan officers join net branches and what their motivations are. I also covered some of the personal questions one should ask themselves before they decide to make the jump and join a net branch. Questions such as: Are you financially secure? Have you reviewed all your options? Do you have a...more
Good as gold. That's what I call a processor that knows how to get the job done, and quickly. I'm met many loan processors in my career, and I can honestly say that many of them were not very good. It's not that they didn't "work hard". They did. It's just that although they were extremely busy "working hard", it didn't matter. They didn't...more
One of the most common objections a loan officer hears is "Your fees are too high!". All too often, customers become fixated on price and closing costs alone, as the determining factor in making their decision. But price is just one small thing to consider when shopping for a mortgage.Here are some of the best responses/methods I've used to overcome the "price" hurdle.1. The first time you hear a price objection from a customer, ask them which will cost them moreÂ…paying too much in closing costs or paying too much in interest over the life of the loan? Then show them the raw numbers. They will almost always choose to pay the closing costs themselves. A higher interest rate will cost them ten-fold or more.2. When you have an objection to price, what you want to do is re-focus the customer on the value of what you're offering. What is the net end result they will receive once the loan goes through? Is it a lower monthly payment? Is it a cut in interest rate? Is it a cash-out? Whatever their motivation, be sure to re-emphasize their own personal goals to them. And do it over and over again. Some customers get so scared with big numbers, they can't see the forest through...more
Every year around this time, my business increases. Loan officers, mortgage brokers, and branch managers--in a flurry to set goals and make resolutions for the New Year-- look for training services to improve their skills. They have high...more
With every year, come new opportunities. And astute loan officers are quick to capitalize on what the new year brings, raising their commission levels and catapulting to top producer status in no time. I ask you one simple question, "Are you doing...more
With interest rates rising rapidly, it is more important than ever to make the most of every loan. As refinances begin to dry up and you begin to deal more with purchases, you will undoubtedly encounter new roadblocks and hurdles on the way to the...more
Let's face facts. The mortgage business isn't for the faint of heart. It takes guts and relentless determination in order to succeed. You won't become a top producer overnight and your early months of being in this industry will be hell. There is...more
During my public speaking and private coaching sessions, I cover many unconventional strategies that have helped me become a top producer in the mortgage industry. I've always been one to think out of the box, and my mind is always focused on how I...more
When I was a new loan officer, one of the most difficult things I had to learn was that not every loan that walked in the door was a good loan. Some loans were bad. Really bad. And like time bombs waiting to go off, they usually exploded right...more