GOD BLESS THE U.S. MILITARY

Whether or not you agree with our country's decision to go to war, we can all agree that we owe a debt of gratitude to those people in our armed forces. With that said, we lenders owe it to our military customers to have a little better understanding and knowledge of their livelihood. One little known way to accomplish this is know how and how much they are paid. Military personnel are paid at least three different types of income. To figure a service-person's income all you need to know is their rank, years of service and location.

Just go to usmilitary.about.com and by clicking around a little, you will find pay charts for all types of military income.

Moreover, when you tell them how much they make they will be immediately impressed with your knowledge of the military. 

THE ART OF NEGOTIATION

Many book shave been written on this subject, but there are two very important rules of negotiation to know and understand.

The first rule of negotiation is that whoever wants it the most usually loses. Enough said. 

The second rule is that sometimes silence is golden. This rule is especially important in that sometimes it is best to say something and then wait for a response in total silence even if the dead air lasts for an uncomfortably long period. Silence is also golden for you, the Loan Officer, as you will be in contact with several parties on any given purchase transaction. Share with them what is essential and legal but do not volunteer any additional information that could be disadvantageous to you or your customers or any other party to the transaction.

As we have discussed before... One of the weapons mentioned in the bible was the jawbone of an ass. While it is no longer a standard weapon of choice for people in the 21st century, the jawbone of an ass can still be a viscous destroyer of Real Estate deals!

THE CHAIRMEN SPEAK OUT

Even though every Loan Officer runs their business somewhat differently, they all have a few things in common.

These common themes are...

1. Excellent customers service. They take care of the customer, making sure they are hapy and creating customers for life.
2. Strategic partnerships with referral sources who appreciate the value of an exceptionally experienced loan officer brings to the table.
3. Excellent product knowledge.
4. They treat their staffs well and understand they could not do it without them
5. Self Promotion - All of the top LO's understand that you have to spend money to make money and that the right investments in marketing your business can pay off handsomely.

To be continued...

WHAT A DIFFERENCE A MONTH MAKES

As we all know, interest rates rose by over one percent during July 2003. This has been a shocking, yet somewhat predictable turn of events for those of us originating mortgages. The old saying that "history never repeats" is true if you change it to read, "History never repeats exactly!" The rapid increase in rates has happened frequently in the past and it will happen again in the future. The important thing is to change your mindset and embrace a market with fewer opportunities as a great opportunity for your long-term business plan. Refinances will always be at least a small part of our business, but they are here today and gone tomorrow. Our latest refi boom lasted far longer than anyone would have guessed and for that, we are all fortunate. Long-term success in mortgage origination requires relationship building in order to thrive in a non-refinance market and excel when the next refi boom hits. For the next few weeks, we will review some things you should be doing in this new market and some new products that will help you purchase business. In addition, we will explore some of the essential skills and knowledge required to thrive in the months and years to come. 

HOW TO BUILD A CUSTOMER'S EGO

Sales success relates directly to one's ability to get along with customers and build their egos. By taking these steps with your customers you will help them to have a better opinion of themselves and usually it follows that they will have a better opinion of you as well. 

1. Establish a friendly connection - find something to admire and/or compliment the customer about
2. Get them talking - ask open ended (not yes-no) questions that will get them talking about themselves and their life and accomplishments.
3. Listen carefully - everyone likes to talk and know they are being heard.

The reverse of the above is true as well. If you take time to feel better about your customers you will probably feel better about yourself. Rewards all around!!!

BILL, NOTE, BOND

When discussing the financial markets, it pays to know what you are talking about. Especially if the person you are speaking to knows what they are talking about. With that said, please do not refer to the 10-year Treasury bond or the 5-year Treasury Bill. The five and ten year Treasury securities are notes just like any other instrument with a maturity of greater than one year and up to ten years. Here is the correct terminology...

Maturities of one-year or less are called Bills Maturities of greater than one year and up to ten years are called Notes. Maturities of over ten years are called Bonds. 

ASK FOR BUSINESS

One of the biggest obstacles keeping Loan Officers from reaching their potential is not asking for business. It all comes down to this simple truth... The more business you ask for, the more you will receive. When calling on Realtors and Builders try something like this, "I would appreciate the opportunity to work on your next transaction." Or even something as simple and direct as "Please give me a try." When speaking to borrowers say, "I would be happy to help you out." Or "I would love to work with you on this." You certainly don't have to use these sentences because they are just examples and everyone must fit such questions into their own personal style. The point is if you ask you have a much better chance of getting the business that if you do not ask!

To be continued...

ORIGINATING IS LIKE FISHING (continued)

For the fisherman, the ideal situation would be a small pond with plenty of hungry fish and good weather conditions. If the experienced angler wants to keep some of the fish, they will be selective about the fish kept from the small pond, throwing many of the smaller fish back. Very much the way the experienced originator can be selective in this market.

However, on another day the conditions may not be nearly as favorable forcing the experienced to be less selective and putting the inexperienced in a position where catching anything is difficult.

The seasoned angler knows there will come a day when only he experienced will be very successful because the conditions will not be as favorable. Right now, we are all fishing in that proverbial small pond with plenty of fish and great conditions. On the other hand, as we all know, conditions can do change. When they will change is anyone's guess and harder to predict than fishing conditions.

So enjoy fishing in the small, stocked pond because some day soon there will be less fish in a much larger body of water!

ORIGINATING IS LIKE FISHING

Well not exactly but there are quite a few parallels...

In fishing, you try to figure out what will attract the fish to you.

In originating, you try to figure out what will attract the borrowers to you. 

In fishing, experience is the best teacher and those that are successful are usually experienced.

In originating, experience is the best teacher and those that are successful are usually experienced.

In fishing, the size of the water, number of hungry fish in that water and weather conditions are all a factor into the success of the angler.

In originating, the size of the market, number of ready, willing and able borrowers and market conditions all factor into the success of the originator.

To be continued.....

IS THIS HONESTY?

What kind of a question is "Can I be honest with you?" What are you supposed to say? "No, please lie to me."

Alternatively, when people say, "Do you want to know the truth?" What are you supposed to say? "No I would rather have fiction."

Please remember that honesty is always the best policy and saying things like this will only make people question your honesty. Many folks say these phrases very innocently, however not everyone will believe in their innocence. So, if you are in the habit of saying these things, you either need to stop saying them or start speaking the truth at all times. 

I AM CUSTOMER (continued)

I am much more sophisticated these days than I was just a few years ago. I've grown accustomed to better things and my needs are more complex. I'm perfectly willing to spend more money with you, but I insist on quality to match your prices.

I am above all a human being. I am sensitive and busy. I can't stand being snubbed, ignored, or looked down upon. I am proud. My ego needs the nourishment of friendly personal service from you. It is important to me that you recognize my own importance to you and that you appreciate my business.

Of course, I am a bit of a show off, too. Don't condemn me for that because you are probably a little hammy at times yourself. Just smile and indulge my whims as best you can.

I am your customer now, but you must prove to me again and again that I have made a wise choice in selecting your company over others. And you must convince me repeatedly that being your customer is a desirable thing in the first place. Do we understand each other?

RIDE IN ON YOUR WHITE HORSE!

Despite how well you handled a customer and took care of them, occasionally the plan goes awry. Something happened that made the loan process somewhat distasteful or downright miserable. Maybe there was a processing error (which was probably your fault to begin with), a last minute "fly in the ointment" at a closing or a problem with the servicer to whom we sold their loan.

Now what to do?

This, my friends, is one of your greatest opportunities.

Ride in on your "white horse" and save the day just like a movie hero!

No, you do not have to untie a fair maiden from the railroad tracks as the speeding train approaches but it is a good metaphor for the situation.

Whenever there is a problem, you can elevate yourself in the eyes of your customers by accepting responsibility for the situation, fixing it and making up for it in some way. All great Loan Officers have to ride the "white horse" occasionally and by doing it right you can turn an angry customer into a Raving Fan!

KEEPING CUSTOMERS FOR LIFE

So now you have made a great first impression, won the customer over and taken their loan application. Now how do you keep them as customers for life?

• Be responsive and proactive throughout the loan process. Make sure everything goes as smoothly as possible and most importantly return their phone calls promptly.
• Contact them both right before their closing and right after the closing. Address any last minute questions, as well as get feedback and answer questions once the loan is closed.
• Continue your contact with them through the Media Center and annual "financial checkups."
• Most of all return their calls promptly. This is the basic ingredient of customer service and client retention before and after the sale!

HOW TO BECOME A TRUSTED ADVISOR continued....

This part is somewhat more difficult in that you must have the knowledge to be a trusted advisor and you cannot get it overnight!

There is no substitute for the experience in the mortgage business, however, by taking the time to educate yourself you can stay ahead of the curve, The newer you are in the business the more time you need to spend every day to increase your knowledge. As your experience and knowledge grow you can taper off your time spent learning, but you should never stop. 

When you stop learning, you stop growing.

Plenty of experience Loan Officers out there stopped learning a long time ago. However, many of those people have since seen their less experienced peers lap them. So regardless of your experience and knowledge, keep improving upon it. Block out time for continuing education, read all you can and keep your saw sharp.

Learn and earn!!!

GREAT QUESTIONS TO ASK A BUYER

Here is a short list of great questions to ask for a potential purchase customer...

• What kind of price range or payment range are you looking for?
• What part of town are you looking in?
• How much is your rent or current mortgage payment(s)?
• How much do you think your home is worth? ( Realtors love it when you give them this information.)
• How much do you have to put down? (This is always a good one because it can present so many great opportunities for you to be a problem solver.)
• Do you have any questions for me? (If you can get to this one you have done well!)
• Be sure and stroke your Realtor/ Builder referral source.

HOW TO BECOME A TRUSTED ADVISOR

The first key to building long lasting customer relationships is to build rapport by asking questions and getting your customer talking. You should be asking three or four times as many questions than the customer asks you in your first conversation with them.

Keep this little fact of human nature in mind. When someone picks up the phone in order to inquire about obtaining a mortgage, they are planning to ask YOU the questions. So by asking them questions you can not only build rapport but you can also get them thinking about what is truly important (i.e. long-term goals) rather than what they called you about, which was almost certainly "what are your interest rates?"

By doing this you will not only set yourself apart from the majority of your competition, but you will also demonstrate your knowledge, skill and most important of all, caring.

So, the next time a new customer calls you, try a little mental game called "he/she who asks the most questions wins." If the customer asks you more questions that you ask them, you have lost and probably will never speak to that person again. However, if you ask the most questions the situation probably will be a win/win for both of you!

CRITICISM

A tough word for sure but not all criticism has to be negative.

By approaching the situation with understanding and compassion, you can turn any criticism into constructive criticism. Like so many other things in life, it's not what you say but how you say it.

Remember, criticism should always leave people with the feeling that they have been helped!

SHARPEN YOUR SAW

Slower times are the perfect opportunity to "sharpen your saw" or in other words, improve your skills, knowledge and marketing.

Here are some things to consider doing when you have the extra time.

• Maintain and improve your database of customers and referral sources
• Spend time on the Media Center website cleaning up your database and expanding your use of the Media Center
• Learn, Learn, Learn -- read the DU guide, 4155 and everything on the info net. Knowledge is your best asset and those with the knowledge it takes, will be successful in any market.
• Make contact with all of your old referral sources, Ask questions designed to help them out and you may decide to drop them from your list or you may just get a customer back!
• Change your office- move your furniture, pictures, etc. You will feel and work better in fresh surroundings. 

GOALS?

Do your goals include success and/or happiness? Hopefully not, because success and happiness are not goals they are part of the journey.

You may have success and happiness related goals but keep in mind the journey is the fun part. If you maintain a positive attitude and always strive for good outcomes, you will find that happiness and success will accompany you always!

NO PAIN NO GAIN

Once again, back by popular demand are the words of the Scorpions. The excerpts printed here are very pertinent for us right now, as we face the reality of less volume as the refinance boom fades and we move forward. These words not only apply to business but they are also great words to live by...

“No time for losers you make the call
Believe in yourself stand tall
Anther day it’s in your hand
You can be the winner in the end
The weak will fall the strong remain
No pain no gain
Keep running don’t look back
Keep moving straight ahead
Keep going don’t ever stop
There’s time to rest the day you drop
You roll the dive you play the game
The weak will fall the strong remain
No pain no gain”

— Scorpions