HOSTED ON AWS Loan Officer Survival

Loan Officer Survival Blog

Current Marketing Options and Expectations!!!

August 23rd, 2011

When doing any type of marketing the first thing you have to understand is the consumers point of view. You must understand your audience to have success. In our industry our audience sees for sale signs up everywhere, they hear of for-closed properties, etc… The point is that with all the consumers hearing negative publicity on TV, radio, on-line, word of mouth etc… it builds fear into any financial move on their home. It builds this ‘exterior’ you have to break through when trying to reach these people. WITH THAT SAID, you have to now look at the different forms of direct marketing….

Direct Mail- whether your using post cards or envelopes, color or no color, or the type of advertisement that’s on it its still just that..”advertisement.” Any form of advertisement will get lower response in the target market when consumer confidence is down in that particular market. For us its the fear of entering any change in their finances when its “scary” Tough to get to someone like this when they get so many others and its easy to through them all away. There is not one mail provider (that can say that responses are not down in the last 8 months and are not getting better. That is exactly what has happened. NOW MAIL CAN WORK IN A GOOD MARKET but ours unfortunately isn’t good right now and mail is expensive! very risky with little control.

Voice Broadcasting- again a simple form of advertisement which requires little maintenance but since it is an advertisement in this market is going to get low response. I know in a lot of states its illegal as well so definitely consult a lawyer if you ever do decide to try it in your state. I just know that its easy for people to hang up on a recorded message and then even easier to hang up after the button is pressed. Cheap form of marketing but low returns as well. A lot of this depends on the type of list and the script and recording. Almost way to many factors involved for the max return you COULD GET. I tell my clients to shy away from it unless they already know what their doing with VB. If your new to it its not the right time to learn.

TV- this one varies nationwide. Other forms of marketing do as well but TV just depends on social activity of that market. For example if its big city your targeting TV wont work as well because people are more active socially and professionally that they watch about 35% less tv per person than smaller rural cities where most things shut down much earlier. Not to mention that it can be very expensive. If it was me in a city like Kingman AZ with 50k people i would do some local adds and if the add is catchy it will work because a decent number of that community will see it. How ever if I’m at home an hour away in Las Vegas marketing there then TV is not going to work because most people don’t watch TV here more than 1 -2 hrs per day.

Email Marketing-I flat out think this can work if you get a good list of Internet leads from a trusted supplier. Problem is that i don’t know of one unfortunately. They all will seem good maybe the first campaign or two but then they start weeding you out for new clients that will pay more. But if you can find a guy you can trust then this can work for you just make sure the emails are all text to make sure that at least some of them get through

Faxing businesses- don do this!! You might hear your industry peers making money doing it but trust me, you don’t want o get caught doing it. risk is definitely not worth the reward.

Social Networking-very big way to gain business. obviously we are all here but i mean social networking within your community. You would be surprised how many loan officers don’t even have business cards. get your butts out their and meet people. go to church, go to city league softball games, go to HOA meetings, go to neighborhood watch meetings. Oh and here is one that has gotten me more loans than anything lately….mlm social networking. don’t get me wrong i don’t do the mlm to make long term money with the mlm. I do it to meet other people who have visions of making BIG money. Those types own home, think about finances, and understand savings and benefit if you can show it to them. Its easy to get through that ‘exterior’ if your already discussing way to make money. I signed up for helloworld (which i do not do anymore) which was a videoemail service mlm. the third meetings went to had about 50 people in it. I did a loan for 8 of the 50 their that night with in the next 45 days. I didn’t care about he mm at all, the networking was the key for me.

Internet Leads-dead market. the problem lies in the fact that the consumer is the shopper. They enter their info into numerous web sites to get quotes not knowing that one site may be and probably is selling their information over and over again. so even IF you can find an honest sales rep somewhere the lead it self may be being sold by other companies and resellers which saturates your quality leads actual quality.

Live Transfers- Hot Transfers- this is the biggest con in mortgage marketing if you didn’t already know that. First of all its far to expensive to do live transfers from the united states to the united states. Did you know that the labor is so much cheaper anywhere out of the US that it make no business sense to do it form the states. The cost is almost double here per transfer so no smart business man would even do it from the states and secondly the quality of the transfer after it got a recorded message, then spoke to some person they could barely understand, and then get transferred again to answer the questions all over again. The only person that will go through that will be a desperate loan prospect that is desperate because they cant get financed. Pretty expensive turn downs most of the time in my opinion. you can generate your own live transfers and skip that process of the over seas call center however it is illegal in some states so please advise your lawyer. Also if you do ever try the live transfers make sure the company’s call center is in the US.  Its a BIG difference.

Telemarketer Generated Leads- usually from a predictive dialer with live agent pitching a script or a manually dialing agent. In my opinion it the most effective and “guaranteed” form of generating business every day. Its more of a personal way of doing it. Now i know a lot of you are probably thinking “telemarketing sucks” and your right it does suck, BUT IT WORK. From where I’m from what works makes money and money is why we work, so even if it does suck i still have most of my client generating their own leads doing this method for 2-3 hrs per night. It cheap, mostly costs you your time. Now if Telemarketing is not your thing personally hire a “telemarketer” to do it for you. There are tele marketers in every city that are in the same week to week check and would be eager to try a new industry with more possible potential. You know that if you make x amount of dials in the same hrs every night you will get at least x amount of deals per month. Pretty hard to stop doing once you realize you are getting 3-4 apps per night which is very obtainable for an average cold caller. Of course the right scripts and list helps as well just like in direct mail but here its harder for them to hang up on a live person then to throw away a piece of mail.

In the end no matter what you do try to do as much of it in house and try to be very specific about who you are targeting. The shotgun approach is definitely not working. You have to target your market, reach them the best way you can to get through the ‘exterior’ and then do it routinely. if you do these basics you should at least do 2-3 more loans.

I’m sure a lot of you will agree with me on some of the stuff i mentioned here. I do apologize for rambling but its i love this stuff, plus its late and I’m tired….lol

Telemarketing for Mortgage Business!

August 23rd, 2011

The first thing we must all do when looking to tele-market for more business is compliance. You must stay compliant with the national and state DNC (do not call) laws. To do this you must get a SAN (subscription account number) from the do not call registry. This SAN registers you so you can call into certain area codes. They give you 5 area codes for free for one year. If you want to call into more area codes then you can buy them. The registry sells them per area code and last time I checked they ran $65 each. Stick to the 5 free that you can start with and when you make money. Then buy some other area codes if you need to venture outside your call zone.

List- Now once you have your San number you want to start looking for a list. The main thing to think about is no matter what list vendor or Title Company you use, no matter what database they pull from, always make sure you ask them if they are scrubbing for DNC. You would be suprised what some people are doing out there. Oh wait this is a mortgage forum what am I saying, nothing can suprise you guys. Just make sure your lists are scrubbed for DNC by your SAN #. There are many types of databases that you can pull from which is another post for another day soon….

Phone line- you want to make sure that your caller ID states the name of your company and has a call back number that is reachable with an opt out message. There are some fine lines that people cross all the time but I would not suggest doing it. It’s easy to set up with what ever provider you use. They will all let you put what ever you want to show on their caller id, etc. No matter if you go VOIP or not that is a discussion for another day.

Scripts-think of a niche you want to call on and develop yourself a good script. You can find them all over the place on line. In a lot of places for free. Find some of those and get some ideas for your own. Think about if what market you want to target, sub-prime, arms, reverse, etc… Then write your script to target that market. This also becomes important when compiling your list. The main thing I always tell everyone is to keep the initial part of the script short and grab their attention. There are many ways to do this. Ill help with this later on in this thread as well.

Dialers-when starting out don’t worry about dialing systems. Get a real analog phone line or a VOIP one if you have to. Then start pounding away using your pre written script. Once you have your pitch down and you feel comfortable then we can start worrying about dialers. For those of you that are experienced in this and are ready for or have used dialers, I will talk about that soon so stay tuned. There are so many systems out there that you want to have all the knowledge about each type. I’ll share this with you in the next post or two.

Review, get set up for SAN, make sure phone line is right, get a list provider, and hang on for the ride. For those of you who are already dialing definatly stay tuned, I can teach you guys a few really great tricks as well to increase your production. Trust me I have 24 Tele marketers myself.   I’ll be teaching you all that I have learned over the years in the next few posts.

Telemarketing Mortgage Lists!

August 23rd, 2011

How to choose the right call list?

First of all after you’re compliant with a SAN ( you need to figure out what your target marketing will be.  Constructing a proper call list is very important to your success.  It is an absolute must to figure out the target audience and then mold your list around that.  For example… if you target reverse mortgages you want to filter by homeowners that are over the age of 62 and have 60% or lower LTV, scrubbed against DNC of course.  Another one might be to target renters that make a good income to try and convert them to buyers.  Not only is it a great time to buy in most markets with the values so low, but you can also network with realtors this way.

Now you can get these lists from various different vendors as well as some online sites.  There are numerous databases to pull from as well.  You have the Consumer database which is the most common.  Most every data supplier uses this as their main database because you can pull so many different lists out of it for many different industries.  For mortgage this one isn’t the best though, reason being that every mortgage filter is modeled.  It is derived off of averages in that geography.  The pros of this database are that you can get it a lot cheaper than some of the other mortgage databases.  The cons are that it only runs 65-70% accurate after filtering.  This data usually ranging from 6-12 cents per record depending on the vendor and the amount of filters you use.  This is the database you should use for a small call center to a large one.  Or if you doing a mass mailing to blanket an area.  I use a lot of this database in my call center.   The Filterable columns normally include…

- Loan Type (Variable & Fixed)
- Credit Score Range
- Credit Card User / Debt
- Loan Amount
- Home Value
- Loan Origination
- Length of Residence
- Lender Type

The second data bank that is most common is the Prescreened data directly from the credit bureau.  This requires an approval with each buyer as well as third party agreement not to resell the data or misuse it.  The bureau’s data is filterable by credit selects obviously and runs very very accurate.  About 90% is the average accuracy.  This stuff runs between 28-38 cents per record depending on the vendor and filtering.  If you go directly to the bureau and skip the vendors you can get the data cheaper per name but they make you commit to $10,000 per month.  This database is best used by a single dialing LO of a small shop with a bigger marketing budget.  The filters that are mortgage related to this data are…

-Revolving Credit Balance
-Credit Score
-Monthly Payment
-Mortgage Origination
-Mortgage Balance
-Length of Residency
-Phone Number
-Installment Loan Balance

The third type of list is a specialty list.  This is where you go and find a niche database.  One example of this would be arm recast, or an FHA database.  These are very niche and expensive but if you manually dialing sometime the investment are worth it.  There are compiling agencies that gather this targeted stuff and sell it as a premium.  The compilers include title agencies, certain lenders, etc..

The main thing to think about when paying for a list is to deal with a sales rep that knows their stuff.  Not just some order taker that knows nothing of your industry.  Make sure that they are scrubbing for DNC and also make sure you do your due diligence on picking a legit vendor.  There are a ton of resellers out there and you need to be careful!  Do your research on the company and its track record before diving in with your check books!

Commercial Closings: HOW TO “CLOSE”.

August 23rd, 2011

I often hear a broker complain that they have had a deal on their desk for months, and need to close them. Many reasons this happens is the Broker is not educated on commercial in where to go, how to structure, and even what info to ask for from the borrower. These Brokers work in bits and pieces and waste their time, and the clients time if this deal is not even a closeable deal. If you can look at this deal and get the borrower back answers fast it reduces the pressure on you as the broker. If the deal is not doable, you have saved yourself time. You even created value in your services if you educate the borrower on why the deal will not work, and then offer structure changes that will make the deal close.

Another key that I will touch on in another message is speed. Not just for the above reasons but because you are being shopped.  If this deal is a good deal you want to bang out a term sheet as fast as possible to keep this deal in your hands. If you are asked about rate without docs a Broker or Lender will not be able to give a real rate. Usually just a range and say “it depends”. Get loan summary filled out and ask questions so that you look like the consultant and create value.

There are many docs needed to review in a deal. A borrower and seller are always slow at getting what is needed. The key to getting these docs is confidence and firmness. You need to start the urgency with the borrower to get docs to you in a reasonable amount of time. More than likely there is a contract already in place which means that you are in a time crunch from Day 1. These borrowers have contracts that they will lose their hefty deposit on a deal if the financing is not in place. Without the needed docs to review the files strengths and weaknesses you can’t help yourself or the borrower. Explain the importance and demand the docs fast. You know how borrowers are at getting items needed, at being lazy, and slow. As you create value in yourself they will trust you, and know you are asking for this because it is needed. They should want you to evaluate their deal as a consultant on their side. Reviewing key evidence that points towards the Return on investment opportunity or whatever the borrowers goal may be.

You need to acquire these docs and crunch numbers to see if it’s a doable deal. The Key is to be firm and confident that “This is what I NEED.” Set a date they need to have these docs to you. If they need to call CPA ask if you can call the CPA. If they complain about forms, ask “Well you want 7 Million dollars don’t you?” You must be quick, because there is a hiccup somewhere and/or they do not like their rate and terms and you have to negotiate. Get the needed docs together, send in a complete package for this deal type to the bank. Get the letter of interest from bank put together a term sheet from letter of interest ( LOI ) and have your client sign it.

Its best to use a PQ form based on each deal type to help explain the deal to you and your UW. When rate comes in to play DON’T sell rate.  Sell payments, solutions, features of the loan and amortizations. Explain the payment to the borrower. A 30yr Am will have a lower the payment than what they may of been quoted by someone else. Go over Return on investment this is the best way to show your deal is better. Look at the deal as a whole. Your deal vs the competition and dissect each part from out of pocket due diligence, down payment, monthly payment, PPP, fixed term, and ROI with monthly and yearly. If you have done the best possible and are educated on where to go and structure you should already have the upper hand. Give the borrower 1 weeks time to accept the term sheet. If they do not come back in a week they are going to go to slow and shop more and more, and they are not interested. Move on. Note 9 out of 10 Commercial deals will not work, with you or anyone.

Step 1 in getting deals is marketing. Begin to let past clients, current borrowers in pipeline, and friends know you are doing Commercial loans. Let all your marketing materials and answering machine messages show you are doing commercial. Your secretary can mention not to forget to run any Commercial scenario’s by you.

Step 2 is PQ and ScreenFigure DSCR and look for any weaknesses in the deal.Tweak these issues or structure the deal to take to a Lender that allows these type of problems.*Think in time frames. Create urgency, with Lender and borrower. This will help get docs needed fast and info needed from Lender fast because they were already under contract. Remember you must think in speed, and urgency.You must also go fast because the borrower will have less time to shop, and a *contract is in place if a it’s Purchase. Have a NCND form signed to protect you from the borrower going around you.

Step 3 get a Term sheet kicked out to the client:Lock in your borrower with an agreement for financial services or term sheet. A Term sheet is better. A Term sheet should have 7 day expiration. This agreement says we are done shopping and you have a 90 days exclusivity. When you issue the term sheet them through the terms. Put the payment on the loan and walk them through the strengths and benefits. Call every 2 days till day before term sheet is expired being signed.

Broker Fee Agreement?

August 23rd, 2011

Q: At what time in the transaction do I use it, and Why?

Over the last 2 weeks this has been an ongoing question from other brokers, or I have heard the horror stories of the fee agreement not being put in place. As the market in Commercial continues to grow and Brokers looking to expand their financing repertoire. They find themselves dealing more and more with savvy clients, and other brokers. Which a lot of times is a far cry from the residential world. With the Respa laws not in effect, and the Commercial learning curve so great Brokers are getting burnt on deals left and right. You must learn to protect yourself. But how, and at which Point?

One Common mistake of the Fee Agreement is discussing this to early in a transaction. If you have not given a borrower a Term Sheet/LOI then you are doing this step prematurely, especially if you have not collected all needed docs to run a true analysis of the deal. You will typically shoot yourself in the foot and take the borrower or brokers mind off of the loan and more on the fees of the loan. At the end of the day your competition now has leverage because you have the client focused on fees not the true #1 issue the actual loan. As the borrower talks to potential brokers/Lenders their first question is “what fee do you charge?” AVOID THIS MISTAKE and give the fee sheet at the opportune time.

TIMING IS EVERY THING: When a Lender gets you back a term sheet you need to copy down the important data. Rates, terms, features, address, loan amount and monthly payment to name a few. In this sort of list or table you will also have Lender Fees if any and your fees. Just like a GFE your fees are not singled out or become the object of the loan. Commercial Borrowers know they have to pay for service. You just have to approach them at the right time for this part of the transaction. You should have a blank Fee Agreement ready where you just fill in specifics of the loan. Once your Fee Agreement/Term Sheet is signed you immediately give them the Lenders copy and have that executed as well. You present the Lender back their form and many times they will ask for yours as well upon acceptance of the LOI/Term Sheet.

If you do not use a Fee Agreement or work with a broker that is, you have no insurance or contract for service to protect you. The borrower can continue their loan with the Lender at the Lender can be promising to pay you this or that. But once that loan closes the call backs may stop from your borrower. Or because you did not hammer out your worth when presenting the loan, the borrower pays you what can be negotiated after the fact, the moment, and climax of the loan. The newness, and your hard work has worn off in their minds.

Once this fee agreement is signed you are protected along with your NCND and should feel quite confident in scrutinizing your fee and the loan.

PPC (Pay Per Click) Marketing

August 23rd, 2011

Ok, I know that many of you reading this may tried Pay Per Click or Search Engine Marketing and has failed or known somebody that has.
I’ve been marketing on the internet since 1993 and when PPC began to get popular in the late 1990’s I thought that it was a waste of money, after all it was much easier to get free rankings in the search engines instead of paying to get to the top.

I continued to think that way until I started discussing it with another LO that was successful with it. We spoke and I decided that it was something that I needed to try. I got a cheap website, put some ads on Google and spent A LOT of money that first month…and recieved about 20 leads, out of those leads I closed three loans…

My experiment was successful but I knew that there had to be a better way, so I hired some of the best (very expensive) designers and consultants in PPC business and learned everything I could from them and along the way, I started to teach them a thing or two as well.

What I am going to do is write a series of articles designed to help you learn what cost tens of thousands of dollars and how I lowered my per lead cost from $125 per lead to under $10 and how I can actually control how many I get per day or per month and how you can too.

Reverse Mortgage Counseling!

August 23rd, 2011

Question: I’ve heard there’s some sort of counseling involved with Reverse Mortgages. How does that work?

Answer: Until recently, HUD required homeowners to attend a mandatory counseling session and it was paid for with a grant provided by HUD. The counseling session ensures homeowners are comfortable with how Reverse Mortgages work and also reviews alternative options. The session is still required, but HUD doesn’t pay for it anymore. On October 29, 2007, a new FHA rule was implemented and borrowers and/or lenders are responsible for paying for the counseling session. However, it’s unclear as to how the program will be implemented, and we’re all waiting for an updated Mortgagee letter to be issued that explains the details.

Until the new letter is issued, the various HUD counseling agencies are implementing their own procedures. Some agencies don’t charge any fees yet, and some charge fees to the Lenders. Some agencies offer a selection and have a no-fee program and a fee-based program. If the homeowner uses the no-fee program, they have to wait 2-3 weeks before they receive counseling. To get the Lender to pay the counseling cost, the counseling agency is asking the homeowner for the Lender ID number of the Reverse Mortgage Lender they’ve chosen. If they don’t have that number, the agencies are telling them they’ll have to wait several weeks before receiving counseling. HUD says it’s absolutely impermissible for Counseling Agencies to treat homeowners like that.

The agencies should schedule all homeowners on a first-come-first-serve basis and are not to give preferential treatment to homeowners that are already working with a Lender. If a homeowner encounters problems with scheduling counseling, they should send an email to Brian Siebenlist at HUD. Brian coordinates counseling activities and his email address is Brian.N.Siebenlist AT AT = @

Counseling can happen in a private room at a HUD center or via the telephone, and usually takes between 30-60 minutes, depending on how many questions the homeowner has. Everybody that’s currently on Title to the home and everybody that’s going to be on Title to the home are required to attend the session. Additionally, the homeowners Trusted Advisors are encouraged to attend the session (ie: children, Pastor, Estate Planning Attorney, etc.) Upon successful completion of the counseling session, the homeowners will receive a certificate that’s good for 6 months, and that certificate must be provided to the Lender. Upon receipt of the certificate, the Lender will combine it with the Loan Application to obtain an FHA case number from HUD.

Reverse Mortgages that aren’t insured by FHA also require counseling sessions, and the Reverse Mortgage Originator will be able to assist the homeowner with scheduling the session.

Predictive Dialers vs. Hosted Dialers!

August 23rd, 2011


Hardware Predictive Dialers

Definition: The predictive dialer uses a variety of algorithms to predict both the availability of agents and called party answers, adjusting the calling process to the number of agents it predicts will be available when the calls it places are expected to be answered.
English: A predictive dialer is a computerized hardware system that automatically dials batches of telephone numbers on multiple lines for connection to agents assigned to call stations. Predictive dialers are widely used in call centers and are very effective when ran correctly.

My favorite type of Predictive dialing is the hardware based systems that have NO VOICE RECOGNITION. This is a program that causes a slight delay due to the software trying to figure out which calls are reaching live people. It is designed to eliminate disconnects and answering machines. However from my experience you loose about 35% of you’re “pitch able connects” due to the customer saying hello twice. In my office we use a 6 man dialer that calls out on 8 phone lines. My reps pitch 100% of every person that answers the phone because they hear the call ring into the home owner. Each six man dialer should be able to generate about 30-40 mortgage leads per day.

Hosted predictive dialers

Hosted predictive dialers (aka: Web-based predictive dialer, or VoIP Predictive Dialers) use the hosted servers in their model to provide organizations and individuals with a predictive dialer capability without having to buy expensive hardware or phone systems.

-No required investments in computer or telephone hardware
-No required investments in software or licenses
-Administration and support are handled by the service provider
-Links into the system are remote, enabling agents and supervisors to connect from any location
-Software updates and upgrades included.

-Service is dependent on an internet connection; when the internet goes down, so does the service
-Providers using VOIP as their primary delivery method experience limited reliability and performance. There are services with analog phone capabilities but they usually limit you to a certain computer. The services that offer a full VOIP are usually a fix cost and unlimited dialing capabilities.

Auto Dialers

Definition: An auto dialer is an electronic device that can automatically dial telephone numbers to communicate between any two points in the telephone, mobile phone and pager networks. Once the call has been established (through the telephone exchange) the auto dialer will announce verbal messages or transmit digital data (like SMS messages) to the called party.

English: the key technology for auto dialers is the ability to detect the difference between a live human pickup and answering machine or disconnect. These are a little outdated with the newer predictive dialers and hosted services being so much better. I don’t know of any auto dialers that can come close to the basic predictive solutions out there.


With over 8 years of dialer experience in different sized call centers I have come to one major conclusion in dialing as we know it. Predictive dialing is the absolute best way to go. I use the 6 agents x 8 lines per dialer method because my reps get to pitch every single person. This model is great for the small to midsized operations. The nice thing with my hardware systems is that you can stack multiple dialers on one computer so growth is pretty inexpensive in comparison with some autodialing systems that require a computer at each station.

The Auto dialers are almost a thing of the past. The only settings they are good for is big call centers that have 100s of agents and really need to use the Voice Recognition. Due to big payroll costs. These centers have to be only talking to live people even if they loose 35% of the pitches due to the delay. These are not good fro small to mid size operations.

The one down side to the predictive dialers is that they are an investment. They can be costly and for most small business it’s hard to come up with the capitol for a system like this. What I suggest for shops like this is to start out using a cheaper hosted service until you make enough to invest in the in house system. Hosted dialing can be very good but it’s still just a stepping stone to the hardware systems.


How credit repair works

August 23rd, 2011

Credit bureaus insist that individuals cannot repair their credit without waiting years for negatives items to be removed. Don’t believe them. Credit Report errors are at an all time high and these inaccuracies are most likely affecting your score in a big way. Here are the four essential steps that make up the process of cleaning up your credit reports. These steps are repeated until you are satisfied with the results or cancel our services.

We examine your credit reports
You begin by forwarding copies of your credit reports to us from all three of the major credit bureaus. If you do not have copies of your credit reports, you can get copies at Simply supply us with your username and password and we can login and download them without hassle.

You tell us which items to dispute
By either letting us know over the phone, writing on your credit report, or filling out the online interviewer, you inform us of what needs to be disputed.

HTDI Financial works your case
HTDI Financial begins to dispute your items by using its arsenal of credit report repair strategies and experienced staff to challenge negative items directly with the credit bureaus. This process will continue, with each new round to the bureaus having to address a smaller number of inaccurate, unverifiable and incomplete negative information each time.

Sit back and wait for results
The credit bureaus have a reasonable amount of time (roughly 30-50 days) to investigate your dispute. Of course with mail time, we figure 45-60 days from the time we draft letters to when you will have most or all the responses in the mail and forwarded to us. Within that time they must provide proof of the discrepancies on your report or be forced to delete those negative items. They will send you an updated credit report and you will then send it to us to move your case forward. The cycle begins again, and we remove more negative items from your reports…

“What’s your Rate?”

August 23rd, 2011

This question is even more ridiculous than in Residential.There are so many factors in figuring a rate in Commercial: Property TYPE, LTV, the credit grade, DSCR, location, Term and Amortization to name a few. A Rate is not what closes a deal anyway. You may have a super low rate, but what is the term and Amortization? A lower rate with a 25yr Am vs a 30yr Am is not a lower payment. So quoting a rate is actually doing a dis-service to the borrower and yourself. Until you have a majority of docs or experience in Commercial loans you can’t really quote anything. At the most you always quote a range. The borrower is asking you so they can shop you in your mind anyway. So give them some comfort and honesty and in the same breath take their mind off of rate. I was taught this by a friend. You control the conversation with questions. Therefore you take the borrower out of the “Rate thinking” by asking questions. “Is rate your most important item with this loan?” Wait and Listen. The borrower will now start to talk about other concerns. 9 out 0f 10 times these “other concerns” or needs are the keys to closing the deal… not rate. I am positive that the RATE is not the most important thing for a client. You must dig deeper into the clients needs. I had a office refi that the borrower was shopping me on. He had a good rate with another Broker/Lender, and it was actually better than what I offered him. Except that my deal had a longer fixed period and thats what the Owner really needed. Even though my rate was a bit higher I had found his true need and closed the deal. You must do the same with your borrower. Ask qualifying questions, they will give you the answer you need.

Free Training Tips

FREE Conslutation

If you need personalized help marketing your business or generating leads, contact us now.

Login / Register