Each of us, ultimately, is in a Sales Position.  “This is the life we have chosen” as Hyman Roth puts it in Godfather Part 2.  The life of anyone in our industry is filled with unknowns.  Which home will our client choose?  Will their loan close?  What changes will the government have for us this week?  How much commission will I make on this deal?  And the biggest question we all ask ourselves… Where will my next client come from?

Well, today’s article should be an ‘eye opener’ for you.  Many of us look at our client’s transaction as just that, one single transaction.  However, if you look a little deeper into the abyss… you will find much more.  There are actually 3 smaller transactions or stages as I like to refer to them, within each one.

There is the initial stage of ‘First Contact’.  The middle stage, that consists of the time we spend together from beginning to end.  Finally, the last stage is the ‘follow-up’.  It’s hard to pick any one of the three, and refer to it as being the most important, because they all are!  Have you ever wondered how your client perceives you?  What they think of you? Here are a few questions to ask yourself about this stage:

* Where and when did you meet them?

* What was the ‘Bait’ that brought them to you?

* Was it a ‘push’ or ‘pull’ (Basically, did you pursue or were you pursued?)

* What was the client’s first impression of you?

* Did you ask the right questions?

The list goes on and on.  This is a critical part of the relationship.  This is where you position yourself as the ‘Expert Advisor’ or the ‘Authority’ in your field.  The all knowing… The Guru… People WANT a Guru… They NEED the all knowing EXPERT!  So, how does your normal first contact go?

The next stage is just as important as ‘First Contact’.  During the entire transaction it’s important to build STRONG rapport.  Step outside of yourself for a moment and look at everything you do from the client’s point of view.  Here are a few questions they might be asking themselves:

* Does this person know what he/she is talking about?

* Do they have my best interest at heart?

* Can I count on them to handle my biggest personal investment?

* Was his / her appearance at the standard that I expect?

The more questions you ask yourself, the better you will understand their thought process.  You MUST have a starting point, a control, if you are planning to improve.  So, take time to examine your process from beginning to end.  Dissect it and find areas of improvement.

Finally, there is the ‘Follow-up’ stage.  Any good sales book will talk about it.  This is one of the easiest things to forget about, overlook or simply procrastinate on.  There are questions that you can ask yourself at this stage as well, some are:

* How many times do I touch (or communicate: letters, flyers, emails, etc.) with my clients after the closing.

* How do I ask for referrals?

* When I close a referral from them, what do I do for my client? (Send a card, gift?)

* Do I have a ‘system’ in place to maximize my relationship?

* How do they feel about the job I did for them?  (This is crucial to know!)

The follow-up is vital.  There is pure gold in all of our pipelines and so many of us don’t even try to get it!  Maybe it’s lack of knowledge, or belief, or maybe it’s a time management issue.  I’ve met so many that say, “I just don’t have the time…” my answer to that, Make the time!

I hope that this has inspired you to stop and examine each of the three stages that your clients go through.  Find areas of improvement.  If you can just improve each stage by 10%, that’s 30% exponentially! How many deals does that turn into over a month?  A year? Lifetime?  Get the point?

If you have anything to add to this article, or would like to leave a comment below, please do!  We love to know what you are thinking!

From Rob Chrisman Report

"What is the best way to stop the selling of leads by credit agencies?" "Trigger leads" are a problem for many in the industry, where after the credit report is run, suddenly a borrower hears from other lenders. One industry vet wrote, "One thing that will reduce this problem is do not put in any borrower phone numbers when pulling a credit report. I always delete my borrower's phone numbers before I pull the report. The credit agencies do not need phone numbers to obtain a credit report. This is not full proof ....the repository may have a phone number on file for borrower ...or someone might be able to look it up. But my experience is that this has reduced the number of solicitation calls to my customers."

Another wrote: "We always give our borrowers a document that says, 'Important -- Opt-Out Instructions: Credit reporting agencies will put your name on a 'target list' within 24 hours after your credit report is ordered in connection with a mortgage.  They will sell this list. As the result you will receive phone calls and junk mail with offers of loans, insurance, etc. from a variety of unscreened vendors. If you wish to avoid receiving this unwanted solicitation, either call 1-800-567-8688 or go to www.optoutprescreen.com and follow the instructions. It takes 5 business days to process your request to opt out. So, let us know the date you complete the request to opt-out.  We will order your credit report on the 6th day."

Please feel free to contact us at 888-551-6530 for any further information.  Also, please visit our Facebook Fanpage for several FREE GIFTS at http://www.facebook.com/SouthernFidelityMortgage

If you have not read the life changing book, “Think and Grow Rich” by Napoleon Hill, grab a copy and devour it ASAP… it could have a dramatic impact on your career, income and life!

Without getting too deep in the subject matter of the book, it is made perfectly clear that one of the characteristics that highly successful people share is that they all have day to day processes set in motion.  They use the POWER OF PROCESSES & SYSTEMS to drive their businesses, and ultimately, their lives.   This is due to several reasons such as having consistency and accuracy each and every day.  Also, the power of leverage is an enormous factor that successful businesses use daily.

McDonald’s, for example, is a multi-Billion dollar enterprise, and is known for the fact that you can go into any location on the planet and have the same “Big Mac” served to you.  It might have a different name on it, depending on which city you’re in, but it will taste practically the same.  This is all thanks to the POWER OF PROCESSES & SYSTEMS.

The big question is, if and how you are utilizing processes and systems in your business?  What about leverage?  Do you have a consistent lead generation system?  Do you have a client follow-up system?  Do you have a Team that you lead?  Maybe not directly, but you do have people that are directly engaging your clients on each and every transaction.  Such as a Title Company, Inspector, Appraiser, Processor… the list goes on and on.

Whether you are a Realtor or Loan Officer reading this, the fact is that the highly successful people in our industries are the same ones that know and use the POWER OF PROCESSES & SYSTEMS.

A couple of ideas to get you thinking…

There is a program that can help anyone manage multiple people or projects, this program is called “Base Camp” you can find it at http://basecamphq.com/.  Another strategy is to map all of your ideas out before starting on anything, for that there is a Mind Mapping software available called “Mind Jet” and you can find that at: http://www.mindjet.com/.

Final Thoughts…

We are all very busy each and every day.  It is in your own best interest to model what successful people are doing in your industry.  More importantly, pay close attention to your daily actions and find out where you can save, cut & conserve energy, money and resources.

Most importantly, put in place RELIABLE, PREDICTABLE, CONSISTENT “SYSTEMS” THAT AFFORDABLY AND EFFICIENTLY PROVIDE ABUNDANT QUANITITIES OF QUALITY PROSPECTS & CLIENTS.

If you are interested in growing your business and working with us, please contact us today at 888-551-6530 or visit us on our Facebook Fanpage at http://tinyurl.com/3bbdlus and you will find several FREE GIFTS for you just for visiting!!

www.gosouthernfidelity.com

Organization, preparation and storytelling can ease the mortgage process (Continued)

4. Explain oddities

Underwriters want to approve loans, but they want to keep their jobs even more. Give them an opportunity to do both by explaining oddities.

For example, if your applicants want to buy a small primary residence within a few miles of a current primary home they intend to keep, explain the situation in way that makes sense to an underwriter.

In this example, without seeing a valid explanation and supporting documentation, the underwriter will be inclined to consider the new property an investment.

Present your client’s situation clearly and honestly. For example, if they’re downsizing because their kids have left for college but they envision their grandchildren growing up in their current house, consider including a notarized affidavit from the applicants explaining why they want to buy a smaller primary residence so close to their current house.

Support the explanation with other documentation. For example, college-acceptance letters and birth certifications could help in the above situation. A copy of the deed or other proof of the client’s tenure in their current house also could help.

5. Tell a Story

You might know intimate details about your clients’ lives, but underwriters working on their files don’t.

With each file you submit, include a letter to the underwriter. Place it on top. This letter should explain the file’s details, unique situations, pros, cons and red flags.

Make it simple, but tell the story. Anyone who opens the file should be able to understand the loan within minutes.

By approaching all your applications in an organized, thorough and detail-oriented manner, you will find yourself originating more loans, receiving more referrals and spending less time dealing with trouble spots. As your reputation for excellence spreads, don’t be surprised when underwriters start fighting for your files.

Rich Leffler, mortgage-education consultant and instructor, is an award-winning industry expert and speaker. He excels in customer service, research, mortgage origination, training and consulting. He operates Professional Mortgage Consulting, through which he creates and instructs mortgage courses while helping mortgage businesses train their employees and grow. He lectures regularly on compliance issues, mortgage sales and customer-service strategies that win, and is available for in-house training speaking engagements and seminars.

Contact rieffler@pmcexpert.com or (410) 486-2430

Organization, preparation and storytelling can ease the mortgage process

Success in the mortgage industry requires organization. This is especially true when taking applications. Whether your applications become masterpieces or messes is up to you.

Countless underwriters have the same No. 1 complaint about loan originators -- they turn in incomplete files.

Although submitting incomplete applications with missing documentation and disclosures may get files off your desk, it ultimately will cause delays and inconvenience for you and your clients. Even worse, such submissions could end up violating the Real Estate Settlement Procedures Act.

The following five tips will help you stay organized, produce better applications and become the kind of originator that underwriters love.

1. Set expectations 

Imagine going to a doctor’s office and dictating what tests the doctor performs and how the examination is conducted. Sound ludicrous?

So why do mortgage originators frequently let their customers dictate the path of the application?

By not requiring customers to prepare for the applications in advance, you risk receiving improper documentation and creating inconvenience that can derail a mortgage transaction.

Your accountant wouldn’t accept monetary estimates, and neither should you.

Successful loan originators set appropriate expectations when scheduling application appointments. They instruct clients to bring the necessary documentation, helping ensure that the application can be filled out correctly and completely the first time.

For phone applications, ask applicants to fax all necessary materials ahead of time.

2. Fill in the blanks

Every application should be approached thoughtfully. It also should be completed thoroughly.

The Uniform Residential Loan Application solicits the information it does for good reasons. Loan originators should complete every field. By filling in all the requested data accurately, you minimize the potential for questions and eliminate the suspicions created by incomplete applications.

Never skip questions only to answer them on the application’s behalf later. Doing so constitutes making a false statement to a financial institution, which is not only unethical but also a criminal offense. Because the application is a legal document, nothing on it may be added, removed or altered after the client has signed it.

By answering any question on behalf of a client, loan originators could lose their license and risk prosecution. By signing the application, you attest that you have completed the application completely, accurately and to the best of your ability.

3. Confirm claims

Loan originators should calculate borrowers’ income. Don’t expect an underwriter to do it for you.

Also, just because borrowers disclose annual earning of $120,000 doesn’t mean that’s the amount you ultimately reflect on the application. What if they’re including a future bonus by mistake or counting on a raise they haven’t yet received?

Review all documentation at the time of the application. Break down the income claim to promote accurate underwriting from the start.

CONTINUE READING IN PART 2 !!!   Click Here: http://www.gosouthernfidelityblog.com/articles/item/37-5-tips-for-underwriter-friendly-applications-part-2

Rich Leffler, mortgage-education consultant and instructor, is an award-winning industry expert and speaker. He excels in customer service, research, mortgage origination, training and consulting. He operates Professional Mortgage Consulting, through which he creates and instructs mortgage courses while helping mortgage businesses train their employees and grow. He lectures regularly on compliance issues, mortgage sales and customer-service strategies that win, and is available for in-house training speaking engagements and seminars.

Contact rieffler@pmcexpert.com or (410) 486-2430

As you know, a fixed mortgage has a rate that’s locked in for a set number of years, while an Adjustable Mortgage has a rate that floats with market conditions. On average over time, you’ll usually come out ahead with an Adjustable Mortgage. One study suggests that between 1950 and 2009, 90% of the time it was better to have chosen variable over fixed.

The reason for this is the premium banks charge on fixed mortgages. For a bank to guarantee a rate for 5, 10 or 25 years, it’s taking a risk that Rates will rise during that time, resulting in the bank losing money. To reduce this risk, the bank charges a little more for a fixed rate. Since that risk doesn’t exist with a variable mortgage, the rate is lower.

Having said this, there are other factors to consider. Currently, the difference between fixed and Adjustable Mortgages is very small. At the same time, interest rates are at historic lows. Thanks to the entire government stimulus spending, inflation is expected to rise in the next year; therefore interest rates will rise too. So since a fixed rate doesn’t cost much extra right now and guarantees a historically low rate over the long term, many people believe it’s the right choice for the times.

However, the only way to know for sure is to have an analysis done of your financial situation. If you don’t have much equity, are worried about your job and can’t afford to have your mortgage payments rise, a fixed rate may be best. On the other hand, if you have lots of assets, stable income and can live with some rate fluctuation, you may do better with variable—especially since you can lock into a fixed mortgage as soon as rates start rising. As your local mortgage advisor, I’d be happy to perform a free mortgage analysis to help you with this important decision. Please call our Toll Free number today 866-930-6737

There are several reasons and benefits to keeping a good credit score, but simply stated a good credit score saves money. In fact, the potential savings with better interest rates and other fees can quickly add up to thousands of dollars. However, even slight drops in your credit score can see interest rate hikes costing thousands of dollars over time and increases in monthly expenses. The following overlooked mistakes some people make can translate into a lower credit score and decrease the possibility of finding future credit altogether:

            1.Carrying high monthly balances

Getting approved for a $10,000 line of credit or more feels great when looking at all those zeros on the page, but do not misinterpret high lines of credit as a license to spend. Your debit-to-credit ratio approximately accounts for one-third of your FICO credit score. Ideally, the best range to grow your credit is around 10% debt to credit. The easy way to think of this is for every thousand dollars in available credit you can carry a hundred dollars on your balance.  Again, 10 percent is the ideal number, but most creditors see a ratio as high as 33 percent acceptable. Once you exceed 50 percent expect to see your credit score begin to take a hit as accounts are considered to run more of a risk.

2.Closing old or inactive accounts

This mistake seems almost counter intuitive. You find a credit card you have not used in ages, and rather than deal with the confusion it seems best to simple close the account. However, closing unused accounts can adversely affect your credit score for a couple of reasons. First, closing old accounts decrease the overall amount of credit you have available. Going back to the first mistake, this raises your overall debt-to-credit ratio dropping your credit score. The second important reason to keep old lines of credit open is to increase the length of an accounts credit history. The average age of accounts is another factor in calculating FICO scores, and closing old accounts in good standing only decreases that number. Likewise it can be beneficial to your credit score to keep old accounts active bolstering both your credit to debt ratio and average age of accounts.

3.Late Payments

Making untimely payments may seem a simple mistake, but it can have major impact on your score. After all, who has not overlooked a bill or accidently sent a payment a few days late thinking it is not a big deal. Generally most credit card companies do not report delinquency to credit bureaus until after thirty days late. However, it is not uncommon now for some companies to report late payments after only a few days after a missed payment. Payment history accounts for the biggest portion of your credit score; as much as 35%. What that means is a good FICO score of 780 or more; can possible drop temporary by as much as 100 points after only a few missed payments. This kind of drop in your credit score can literally cost thousands of dollars in higher interest payments on mortgages and car loans. Keeping your credit accounts in good standing is vitally important to your credit score. Even if only the minimum payments are made, the difference in your credit score can be substantial.

4.Using credit cards that do not report to credit agencies

Believe it or not, credit card companies are not required to report to credit bureaus and some companies elect not to report this information. Now initially this might appear to be a benefit of using the card since the occasional missed or late payments will not be reported nor hurt your score, but you also miss out on the benefits of good credit history from cards like these. Likewise if the account was to ever go into delinquency and sent to collections, the affect on your credit score would be considerably worse; since your credit report would contain a collection notice without any other positive credit history to offset the damage.  Since the card does not report, this type of credit account has no way to help your credit score, and it can only cause further damage. In effect these cards hold no benefits for people who use their credit responsible and carry only risk to the card holder’s credit score. When signing up for new cards, it is a good idea to determine if the company reports their information to avoid this credit score dead-ends.

5.Too many high interest credit cards

Having several credit lines open does not necessarily hurt your credit score, but people need to manage the types of accounts they hold.  Ten percent of the FICO score is calculated from a factor of a healthy mix of credit. A healthy mix of credit is made up of a variety of credit cards combined with secured or installment loans like mortgages, car loans, or student loans.  A person will score better with a good mix of credit cards and secured debt than a person with credit cards alone. The easiest way to remedy a bad mix of credit is to make a large purchase like a car or home diversifying credit accounts.  If declined approval for a larger loan, taking out a smaller loan and honoring the terms can also help increase credit scores. Be sure to keep all credit accounts in good standing since missing or late payments have the biggest impact on your credit score other than major credit infractions like bankruptcy or foreclosure.

The best way to look at your credit score is in dollars and cents.  A few simple mistakes can drop your score considerably. Suddenly that $25 dollar late fee turns into thousands of dollars when shopping for a mortgage with a bad credit score.  Maintaining a good credit score right now and taking the extra time to avoid simple mistakes can save you from waking up to a credit nightmare later.