How to Keep Mortgage Borrowers with You : the Whole Way Through Your Loan Closing

As any loan officer knows, one of the hardest parts of the job is not all the number-crunching, it’s actually keeping the customer with you until you close the loan. That’s right! The hardest part of the job is actually making sure that your customer stays with you the entire way. Besides being frustrating, it’s hurts you financially, right in the wallet! And a lost deal can mean a loss of $2,200 to $3,000 not to mention any future business or referrals from that customer.

Here are some of the best ways to gain commitment from your customer and keep them on-board with you the entire way.

1. Make the customer pay for the appraisal upfront and at-the-door. This gives them a financial stake in the transaction. If they pull-out of the deal, it’s their money they lose not yours. Also, make them pay for their credit report as well. Credit reports are usually under $35 or less, and even a small financial obligation like this is enough to cement a transaction. Let them know that this money is non-refundable, but will be credited at the time of the closing.

2. Gather all documents from your customer yourself, and don’t count the deal as "sold" until you have these papers in hand. Do not order anything or progress the loan until you have these. The customer isn’t serious about the offer until they do this. By the way, my Sink or Swim Loan Closing System, shows you exactly what documents you need to gather on every deal so you won’t forget, to learn more visit http://www.loanclosingsystem.com

3. I make the customer emotionally commit to me. Here’s how, when I feel the deal has been "sold", I tell them, "As you know, I have tried my best to get you the best terms and rate out there for your situation. Doing a mortgage loan is a highly involved and complicated process. We are dealing with your finances and I will do the best I can for you, but before I can proceed, I need to get your total commitment to moving forward, do I have on your honor, that you are satisfied with the deal I have presented to you and are done shopping around?"

If they say no or maybe, then I end it right there and tell them, "Ok, well please call me when you are satisfied, then we can proceed, but in the meanwhile you may lose this rate. Is that something you want to risk?" Once again, I am exerting control over the situation and letting them know I am serious about doing business. The simple fact if they are going to shop you, they will do it anyway, so better to get it out-front at the beginning.

4. Be sure to gain the spouse’s commitment as well. Know who wears the pants and who is making the decision. I want all parties to be on board before I proceed.

5. Continually repeat back to the customer why they are doing the transaction. Reiterate every time you speak with them, the benefits they are getting out of the deal. Are they saving money per month? Consolidating their debt? Getting out of renting? Whatever it is, say it back to the borrower over and over again. You can never oversell them.

6. Consumers are bombarded with offers constantly, on a daily basis. Even one slightly lower offer of even 1/8 of a percentage point can be enough to make them leave you. I tell customers to call me before making any final decisions, or else they will lose the deal. Emphasize that "If a deal sounds too good to be true, it probably is. Tell them, that "Many firms use teaser rates just to get you interested, then quickly bait and switch you into another program".

7. On purchase loans, you have less to worry about. If the borrower tries to leave you, tell them that "They risk losing the house if they switch to another lender and closing on-time." Purchase contracts are very definite in terms of dates needed to close by, and there is little flexibility in terms of changing these dates. Purchase buyers are emotionally invested in their new house they’re already decorating and painting the rooms in their mind! Use this to your advantage.

8. Be seen as a trusted advisor throughout the process. Make friends with your borrowers. Add value wherever you can. Keep control over the situation. Don’t let the customer "bully" you. If they walk on you once, they will do it throughout the entire process and you will lose in the end not only your self-esteem but your time and yield spread premium income as well.

These are just a few of the ways I gain commitment from my customers.

Rob Lawrence is ranked one of top national trainers in the mortgage industry. He is the currently the CEO of Battlecall.com, coaching, tools and resources to turn mortgage professionals into mortgage warriors. Visit http://www.battlecall.com for his free "Sink Or Swim" weekly newsletter, mortgage training, marketing advice and more! Jumpstart your career in the mortgage business, starting today.