Your Borrowers Have a Need for Speed
I wanted to share a strategy that has worked to minimize prospects from shopping me all over the place. Although I work mainly off referrals, I find that by the time they are usually referred to me, they have already been out talking with others first.
I don’t know about all of you other brokers, but I am finding that often the rates offered by the “retail banks” are much better than the wholesale rates we are being offered. That is a conversation for a different day… don’t get me started!
So how do you combat it?
I start by explaining that our goal should be to get their loan done with the least amount of hassle. With all of the national lenders taking 60-90 days to close a loan, preparation is the key. We start by determining the best loan structure and then work on estimates. We go through the conversation about the difference between paying points or not paying points and that most of the low rates they hear about involve paying points. I tell them that they can have any interest rate their little heart desires, it just a question of how much money they have to pay to get it. And then we determine what a good combination of rate and points would be as a “target”. I then explain that the best way to position yourself to get that target rate is to start the loan process including paying for an appraisal. Once we get everything back and have a complete package, we submit the loan to the investor that will get it done the quickest and that is a good fit from a rate perspective. The goal is to get within 15 days so that we can lock on the most aggressive pricing when the time comes. We are fortunate to have delegated underwriting with one investor and have a couple others that are underwriting in 10 days or less. That is key.
This collaborative process ensures that you’re “on the same team” as your customer… working toward an end result that saves them the hassle of dealing with the big banks.
Can you imagine having to do a loan with one of the big guys right now? Save your customers from this nightmare!