Industry expert Dave Hershman elaborates on last week's discussion about losing referrals to builders' preferred lenders
By Dave Hershman
Special to MPA
Part Two of the Answer to This Question: I keep losing referrals because my clients are purchasing new homes and the builder is giving $10,000 or more in credit if they go with their preferred lender. Every time one of my referrals starts looking I cringe if they say they are looking at new homes. How can I steer them to existing homes?
--Stuart from California
Last week we focused upon making sure you get input before your clients sign on the dotted line to purchase a new home. However, we recognize that sometimes you will find out afterwards. If they have already signed a deal that gives them several thousands of dollars off the price of the home if they go with the builder's "preferred lender," how could you stand a chance?
Well, it makes sense to make sure that the builder lender is not significantly higher priced than you. This higher price could be an edge to at least match the credit or perhaps give ammunition for the client to get the builder to waive that clause. This strategy is not always going to work -- but it is worth a try.
In addition, if there are qualification issues and the builder's lender is having problems getting an approval, this is another reason that you should keep close tabs on the situation. Again, it will be helpful if the builder knows you and is comfortable with you. Plus, if you do one loan for them, that means you will be perhaps not added to the preferred list, but at least you are moving up the ladder.
--Dave Hershman
Do you have a reaction to this commentary or another question you would like answered? Email Dave at [email protected].
Dave Hershman has been the leading author and a top speaker for the industry for decades with six books authored and hundreds of articles published. His website is www.originationpro.com. If you have a reaction to this commentary or another question you would like answered in this column? Email Dave directly at [email protected].
Special to MPA
Part Two of the Answer to This Question: I keep losing referrals because my clients are purchasing new homes and the builder is giving $10,000 or more in credit if they go with their preferred lender. Every time one of my referrals starts looking I cringe if they say they are looking at new homes. How can I steer them to existing homes?
--Stuart from California
Last week we focused upon making sure you get input before your clients sign on the dotted line to purchase a new home. However, we recognize that sometimes you will find out afterwards. If they have already signed a deal that gives them several thousands of dollars off the price of the home if they go with the builder's "preferred lender," how could you stand a chance?
Well, it makes sense to make sure that the builder lender is not significantly higher priced than you. This higher price could be an edge to at least match the credit or perhaps give ammunition for the client to get the builder to waive that clause. This strategy is not always going to work -- but it is worth a try.
In addition, if there are qualification issues and the builder's lender is having problems getting an approval, this is another reason that you should keep close tabs on the situation. Again, it will be helpful if the builder knows you and is comfortable with you. Plus, if you do one loan for them, that means you will be perhaps not added to the preferred list, but at least you are moving up the ladder.
--Dave Hershman
Do you have a reaction to this commentary or another question you would like answered? Email Dave at [email protected].
Dave Hershman has been the leading author and a top speaker for the industry for decades with six books authored and hundreds of articles published. His website is www.originationpro.com. If you have a reaction to this commentary or another question you would like answered in this column? Email Dave directly at [email protected].
