If your clients are calling you asking about current rates, your job is to change the conversation from rate to payment – and quickly.
Part II of the Answer to This Question: Rates are down and I am getting a lot of calls from previous clients that want to refinance. Unfortunately, the market seems to be very competitive and I am losing deals to other loan officers. Should I move to a company that is more competitive?
Last week we spoke about the fact that I could not advise regarding your position, but I did note that you spoke of your clients calling you instead of you calling them. Regardless of who makes the initial call, this week I would like to address what you may say to the client. Recently we featured a story about a survey conducted by BankRate.com. This survey indicated that 35% of homeowners have no idea what their interest rate is. I am surprised that is only reported at 35%. Why? Because homeowners don't make a rate every month. They make a payment every month.
Here is the problem. They are calling you asking about the rate on a 30-year fixed mortgage. Your job is to change the conversation from rate to payment –quickly and decisively. This goal is easily achieved with questions such as "What payment are you looking for?" or "Are you more interested in lowering your payment or saving thousands of dollars by building up equity more quickly?" There are plenty of other options, but here is the point -- the conversation should not be about the rate, but the benefit. The key is digging deeper to the client's needs. We will address that next week in our final segment for this question.
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].
