Being a large financial company, your main advantages is you get access to many different lenders and a huge selection of loan programs, that you can offer your customers. Having lots of lenders to deal with--however--can become one of your biggest problems.
Because person relating to the borrower along with the bank, youre responsible for coping with the many others mixed up in the transaction. Youre managing appraisers, title companies, attorneys, underwriting, wholesalers, etc. Youve already got a whole lot on the plate, so adding more things or people for you to deal with with your office, isnt going to help you get anymore loans closed. You wish to simply your small business plus your life.
Present are you currently bombarded with rate sheets, special pricing offers, free donuts, luncheons, etc. from wholesalers? The length of time did they will run you? Did they help you close many difficult loans? Did anything come from it? Is it bringing anything worthwhile on the relationship? They are inquiries to consider before letting another lenders rep in your office. They are able to suck-up your entire time, by leaving you without a penny to exhibit for this. Dont go lower a road to nowhere and permitted this to take place.
Here are a few of my top tips for coping with pushy wholesale account representatives:
* Realize that there are several stellar wholesalers out there. They arent all bad. Some will go the extra mile in your case and fight your case towards the underwriter on difficult loans. Unfortunately, you will not find this out before you are deep in to the loan process, and after your relationship has progressed to a respectable working level. Until it grows to that point, it can be impossible to differentiate one wholesaler from another.
* Never deal with a merchant account representative that is a novice to the lending company, or only has experienced the mortgage business a short while. Youll end-up being forced to train them, and so they wont cash value to create towards the table. They also are generally individuals call continuously begging for a financial loan, simply because they don't possess many clients to service. For top level rates, and highest level of service, demand someone with a minimum of 24 months of expertise, preferably more, having a particular lender.
* Dont allow yourself to be stuffed onto the wholesalers marketing lists. Your fax machine and email with be overflowing with gimmicky sales pitches and mortgage hyperbole.
* Never allow a wholesaler in to the office, without first talking with them IN-DEPTH on the telephone about their loan programs. They are going to make an effort to schedule a meeting ahead view you, but why spend an hour or so in a very meeting, if their programs and rates arent competitive?
* Request a sample rate sheet upfront, in order to see what their rates are. Even better, obtain program and underwriting guidelines in order to judge how strict the underwriters will probably be. Even when their rates are low, could you get the offer closed?
* A high level new broker, and dont have most financiers, do not go overboard and sign-up with everyone. Keep in mind that, you will be overwhelmed with telephone calls, simply have so many loans to go around. Its not all wholesaler you sign-up with get a loan from you. They should know this upfront.
* Wholesalers could be a valuable resource in the remaining portion of the industry. Each will know the other and they are great for receiving the inside scoop on the other instrument local mortgage companies while they make their rounds. They likewise have a lot of connections with lenders and should discover how their programs stock up to others.
* When a wholesaler calls and starts in on his sales pitch. Say, Why should I truly do business together with you? What is going to you are offering me, apart from significantly lower rates?. Preferential is just not enough, today you also have to have a high level of plan to have the deal closed. Ive seen many deals fall through not since the rate wasnt low enough, but because the account representative sat on his hands. Is that this guy planning to head to bat for you? Let him express.
* Give attention to having a number of lenders, and send them nearly all your organization. You need to have A couple of A-Credit lenders, and know their programs inside and outside. B-Credit is a lot more complicated, so youll need between 10-15 for shopping purposes. By narrowing your field of lenders, youll familiarize yourself with the account reps better which enable it to deepen relationship. They will be just like a partner as well as an extension of the mortgage office. But, be sure you choose wisely when your loan rests of their hands.
These are some of the policies I follow in my office and teach my students. The mortgage business is full of people who are all acting in their own personal business interests. Remember, the wholesalers job is always to bring in loans from mortgage brokers. They are selling to you, as much as you are selling the loan to the end-borrower. Use them like a valuable and trusted resource, but dont belong to the trap to become distracted by an endless variety of programs and rates.
Follow these tips, as well as your business will probably be far more focused as well as on track.
