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By Rob
Real Estate & Mortgage Broker... Creator of the Sink or Swim Loan Closing System
Hello Rob,
A topic idea for
you.
I have potential
refi's that are putting me off. I believe that the reason for it is that
they just don't feel like dealing with the process.
They imagine it to
be hard, or that they will get screwed over...or worse -- or something
else...
I would love to see
a topic on how to overcome borrower procrastination without being a
pest.
Have you done that
topic already?
Thanks!
Mark Giordani
Hi Mark,
Thanks for your email.
I always enjoy speaking with fellow loan officers and seeing how I can
help. At one time, borrower procrastination wasn’t a common problem,
but has now become one, as more and more people got into the mortgage
industry. Many of them were bad apples, incompetent or worse. Bad
experiences and bad memories are what you are competing with.
For some customers,
rate shopping is a game. No matter how hard you try, they will never go
with you. They just want to see how low a rate you could get them. It
may be that they aren’t procrastinating, but rather are just putting you
off, because they decided to go with someone else. Anything they say
such as “hassle”, “it’s not worth it”, etc. may be just a cover.
On the other hand, if
the deal you give the customer isn’t meaty enough for them, (meaning
that they aren’t going to save a significant amount), some customers
will simply throw up their hands in frustration. These are the ones
that have gotten burnt before in the process, leaving a sour taste in
their mouth. For them, it’s just not worth it.
Provided your mortgage
deal makes sense and is in the best interest of the customer, here are a
few ways I’ve learned to get clients to stop dragging their feet.
1. Explain the entire
process in full. Show them how simple it is and that you will take care
of all the necessary paperwork. They merely have to follow your lead.
Although, getting a mortgage is a long and tedious process, you have to
prove your case and demonstrate that your firm is different from the
rest. Despite what the customer has experienced in the past, you aren’t
like other loan officers. Building this sort of credibility starts from
the first phone call, and is one critical skill I advocate in my Sink or
Swim Loan Closing System at
http://www.myloansystem.com
2. Create a compelling
reason to act. How much will they save per month? How much in interest
will they save over the life of the loan? Demonstrate the financial
incentive to them in black and white.
3. Translate the
financial numbers into a real-life perspective that clients can
understand. People need to be able to rationalize things. How many
nights-out is this? How much extra “fun” money will they have?
Whatever the client is into, put the financial motive into a physical,
tangible one. When people think about things that way, money becomes
all the more real.
4. Let them know that
there will be “pain” if they don’t act. The opportunity won’t last
forever, and their reluctance to act will cost them in the long run.
Are the interest rates rising? Is there something about their situation
that will affect their ability to refinance in the future? Are they
looking for cash out, and if so, can the pain of their debts/bills be
used to motivate them?
5. If the customer
doesn’t listen to reason, and still won’t act, they may have paralysis
by analysis. I call these the “engineer types”, as they want to nit
pick every part of the process and will shop forever, always looking for
a better deal. My advice—give up on these loans. They will cause you
more trouble than they’re worth.
I hope the above tips
help. The mortgage industry is always a challenge, but it is how you
learn from adversity that will make you a top producer.
-- END
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