Closing loans can be difficult, especially with all of the competition out there. While there are many different types of mortgage lenders and lending companies, you need to make yours stand out from the rest to close more loans and increase your revenue. Here’s how you can close more home loans.
#1. Add Value
One thing that can make you stand out from the competition is to add more value than they can. You should always try to give someone something before you try to sell them. Aside from structuring a loan, you’ll need to add value by giving them more information about getting a mortgage loan.
For example, you can provide new home buyers with mortgage calculators that can help them determine whether or not they’re ready for a home. Mortgage calculators can provide borrowers with information such as how much home they can afford before they go through your sales process. This means that you can weed out the applicants that aren’t ready and only work with those who are truly ready to get a loan.
#2. Don’t Oversell
No one likes being directly sold to, even people who want to buy a home. You should never simply start a conversation with why you’re the best and try to convince someone to work with you right off the bat.
Instead of overselling, use the tone of the borrower to lead your sales opener. For example, if they become hostile towards you, try to make a joke to lighten the mood and lift their spirits so that you can continue with your sales pitch.
If you’re not making cold calls, but you are calling warm leads, make sure that you have all of their information in front of you so that you can provide them with the most accurate information.
#3. Use the Right Software
Whether you’re trying to make a sale, trying to turn a cold lead into a warm lead, or you’re managing your MSR portfolio, all mortgage brokers need the right mix of software to keep themselves organized and improve the efficiency of sales.
For example, MSR valuation software can help you manage your build and optimize your MSR portfolio with portfolio valuation and detailed reporting. Sales software, on the other hand, can help you manage your leads so that you can sell to them more effectively.
#4. Realize What It Takes
There’s no use having one phone call with someone interested in obtaining a mortgage and ending the conversation there. It takes multiple meetings to close the sale because you have to earn a borrower’s trust. Far too many loan officers give up after the first two meetings and forget about the prospect for good. Instead, you should aim to play the long game and try to work with the prospect so that you can earn their trust and their business.
#5. Become an Industry Expert
One way that you can earn the trust of prospects is to become an industry expert and get your name out there. You can use good public relations practices to become a source for reporters or even write your own blog so that you can prove your expertise and earn the trust of your prospects before you even talk to them on the phone.
#6. Use Action Items to Keep the Process Moving
Instead of ending each phone call wondering whether or not you’ll hear back from a prospect, give the prospect something to do for the next steps so that you can improve the chances of being able to sell to them.
After each phone call, send them a short email reviewing what was discussed and a list of action items that gives them something to do so that you can keep them moving along in the process. You can and should devise a checklist for all prospects after the first initial call so that you can keep them moving through your funnel.
By closing more mortgage loans, you can earn more money and grow your business. But closing deals isn’t a walk in the park—it takes hard work and patience. Try using one or all of the above tips to start closing more mortgage loans.
Closing Loans FAQs
Can you get a loan for closing costs?
Paying your closing costs out of pocket as a one-time expense is the most cost-effective approach to cover them. If the lender allows it, you might be able to finance them by folding them into the loan, but you’ll have to pay interest on them for the duration of the loan.
How do you close a loan?
The following are some tips to close more mortgage loans;
- Add Value
- Don’t oversell
- Use the right software…
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