Loan Officer Leadership Podcast

021: Scripts: Rate Shopper | How to close for the business, and STOP loosing clients

June 19, 2019 Episode 21
Loan Officer Leadership Podcast
021: Scripts: Rate Shopper | How to close for the business, and STOP loosing clients
Chapters
Loan Officer Leadership Podcast
021: Scripts: Rate Shopper | How to close for the business, and STOP loosing clients
Jun 19, 2019 Episode 21
Steve Kyles
Stop losing loans and business to online lenders. In this Podcast, Steve Kyles and Jolea Nealy (Jojo) share power scripts to ensure you keep the business. This episode is a must for Mortgage Loan Officers. Learn how to: effectively close for the business, get clients to commit upfront, sell value and the importance of staying committed in order to have a competitive advantage in today's real estate environment.  
Show Notes Transcript

Stop losing loans and business to online lenders. In this Podcast, Steve Kyles and Jolea Nealy (Jojo) share power scripts to ensure you keep the business. This episode is a must for Mortgage Loan Officers. Learn how to: effectively close for the business, get clients to commit upfront, sell value and the importance of staying committed in order to have a competitive advantage in today's real estate environment.  

Speaker 1:
0:02
Welcome to the loan officer leadership podcast. I'm your host Steve Kyles and I am thrilled to be with you on this journey that's designed to encourage and equip you to get better. And today, drum roll please. I've got my very special, the one and only cohost Joe lay a knee. Lee, what's up? What's up? I love the gem roll. What an intro. Come on man. Drum roll please. Jolia I am excited about today's con too excited about today's podcast is so relevant. How many times do we fight rate shoppers and fight every day? It feels like every day it is an uphill battle. And so, hey, you know what I, what I love about this podcast is it's really a community that's designed to help real estate professionals and loan officers really be laser focused on getting better and truly making a difference together. Um, just remember this.
Speaker 1:
0:58
So I love our Hashtag it's Hashtag grow and grind. It's so being purposeful in our growth, relentless in our effort because there was a quote that I always think about and it says anything we're doing is worth doing badly. Badly. I know it sounds fancy. It is. Right. You know, it's, uh, it's such a great and fresh perspective that anything worth doing is worth doing badly. And that speaks to just start, start now, get better, get 1%. You know, earlier this year we were going through James Clears book atomic habits. And what I loved his perspective was, I'm not trying to get five or 10 or 15 or 20% better, but can I just get 1% better today than what I was yesterday? Yeah. That shifts your perspective because my whole life is all about perfectionism. You gotta wait, wait, wait until you get it right until you do it right.
Speaker 1:
1:50
So that, that changes everything. Everything perfect before I take action. No, you just got to do it. And that's, that's really half the battle. And so, uh, I just love it and I love what this community is building and doing. And so today, Julie and I thought we would talk about, uh, scripts, uh, how to overcome the rate objection. And really that, that's probably one of the biggest challenges, uh, the rate shopper and how to win the deal. And beat your competition. So I've got to tell you a story. So we have this conversation probably every day. So literally today we had three opportunities to lock in loans. Yep. Got Two. And the third one, what did he say? He's like, I am gonna look at some other lenders. Oh No, I've got, I'm looking at two other lenders. I know enlisted girl, this is after we've already sent out multiple preapproval letters.
Speaker 1:
2:38
I feel like I'm killing it. Like I feel like I have given this dude the perfect, the best everything I possibly give us. Like you can't get any better. So it's like, hey nights and weekends, hey, we got him underwritten upfront. They know time, like literally from contact to underwritten in less than 48 hours. And then he got a contract like 36 hours later. He's like great. And asked us to move quickly, move quickly. He's got a closed in two and a half weeks. It guess what he shopping. So today, you know, it's so funny, I just, I think this is a great topic. One of the things that I did a few months ago, we were locking in loans and I gotta tell you, out of the opportunities, we had probably lost 40% of them. Yes. Super discouraging. Well, it was crazy hard. And so here's what I did.
Speaker 1:
3:24
I went home and my wife is a high d C so we're taught, you'll look at one of the podcast on the disc and that'll be a future episode. But we were talking about how to better understand behavior styles and who you are. And so I went home, I was frustrated at last several deals. They were rate shopping. I put all this time, nights and weekends, text, updated pre-approvals, running numbers. And then when they went under contract, we lost him. And I told her, I said, Steph, you're a DC, which is a driver focused on the details a lot like an engineer. Right. And then, um, so I was talking to her and I just said, look, would you go with somebody like me who is more about relationship, not price. And you know, she said No. She said, no, I wouldn't. And I said, are you kidding? This good looking fellow right here. Yeah. That don't work with that. Don't work on rates. Yeah. You, well, what's so interesting is that I just started to craft a script and I said, okay, so what makes the difference? What would make you say yes when I'm not the lowest? What'd she say?
Speaker 2:
4:25
She's like, you have to ask for the commitment. You gotta be upfront. Yeah. Well that's good. Sounds like dating. Exactly. Just tell me what you want.
Speaker 1:
4:34
Well, and you know what's so great about it is it helped me understand that I was expecting commitment, but not asking for commitment. So really just out of the work I was doing, assuming that they would respect the fact that you had done all that work in, but you know what I found out is they didn't even understand the price we were paying. Right. So here's what the consumer's mindset is. You're just a commodity and you're getting paid. You're just not going to get my loan.
Speaker 2:
5:01
Yeah. And I think that there's operation behind, like with quicken loans and with all of the online services now it feels like, you know, everything's electronic and so it's just August process through. They don't realize that there are real people putting in sweat equity, you know, behind everything that happens.
Speaker 1:
5:16
I don't think they really understand that there is a person and who's making material people, real people, real jobs. And we don't get paid until it closes. And Hey, that's the real key is because, you know, whenever I was talking to Steph, I th she said if I knew going in up front, at least you've given me the decision. Exactly. So what happened was whenever I would say, Hey, you're shopping another lender, but we got you fully underwritten, it's like, oh wait, you did? She's like, okay, great. And then I'm like, but we also, I was texting you on nights and weekends and I stopped, you know, got out of karate with my son to send you a preapproval. And, and I think it was almost like a, a twist their arm to get back in the deal. And you know what I saw it did it put me on the other side of the table and where I had been an advocate, I was now becoming an adversary.
Speaker 1:
6:07
I love that. I love that you say you know you, you're on the other side of the table. I think it's really good to envision that because sometimes as lenders or you know, even in real estate you think, Hey, I'm on this side, I'm the professional, I'm the expert, I am here just to talk to you and not with you. And so in order to really build the relationship, you have to take yourself, get up out of your chair and go to the other side of sit with the consumer and say, I am here for you. Walking with you through this process to make sure that you win was the different. So we have what's called a loan consult and in our loan consult at the end of it we're going to close for the business. So here's the clothes, the clothes you want to say is, is there anything that would prevent me from being your lender lender?
Speaker 1:
6:50
So say it with me. Is there anything that would prevent me from being your Lindor? And what it does is it gives you the opportunity to hear any objections. It opens it up. So now like what? They have to say something, either they say no, there's, yeah, there's nothing, but you've heard it the other way too. You heard yet probably 50% of the time they said, no, no, no, we're so thrilled. You've done a great job. But I still think you need to close after that. But then the other part, you know what they'll say like, am still looking, I gotta be honest with you. I'm looking at you and to other lenders. And so at least now I know where we stand, right? And so here's the part that I feel like is absolute gold. So wait, before you say that, I do. I do love where you know where you stand.
Speaker 1:
7:33
Because what it does is it gives us the ability to say, okay, cool. We're not going to expand every single resource we have, the sort of aspire, we've gotten them preapproved. And that's where, that's the big piece. Because you're so frustrated once you've gotten the fully underwritten, once you've sent the 10th preapproval and changed it by $3,000 11:00 PM phone call or that 6:00 AM text and, but at least now you've got to draw a line in the sand and it says, is there anything that would prevent me from being your lender? And then you shut up and they're going to say, hey, no, I think you're doing a fantastic job. Excellent. Here's the next part and I'll tell you that. But the other one is, uh, do you know what we're looking at? Two or three lenders. Excellent. Hey, and here's where you're going. Regardless of the response, you're gonna say, hey, you know, really it's going to be, hey, you've done everything right and you're just going to say the fact that my team enough.
Speaker 1:
8:27
You know, one of the things I always love to tell people, Julia, is most people don't realize that my team and I are not compensated unless you go to closing and fund. Yup. So what that means, Julia, is that we're fully invested from start to finish until your loan funds. And that's whenever my team and I are compensated. So here's the next part. We're working in good faith and I'm asking for your commitment in good faith to move forward. That when we under contract, it's not the time to shop. It's the time to run fast and to move quickly. Your commitment, uh, to work with me and my team always allows me to deploy the full resource of my office to ensure you have the competitive advantage in today's marketplace. You know, Julie, is there anything that you think that would prevent me from being your lender?
Speaker 1:
9:16
No. Now I'm scared and I think you need me. Light bulbs go on. Well, there's 88 things that can go wrong in a transaction. And I love to say that there's a great infographic on that and you know, I love it because people think it's too easy. They can leave you too easy. And it really is, it's the light bulbs. People aren't, not that they're not educated, they're not aware of what happens in a transaction. And I think any time they can go and choose their new rates or they can, you know, they can go meet a new loan officer, they can fill out a new loan application and you have to make it, make it known that they are committing to walk through this process with you. That there's a lot in this journey. That's exactly right. It's a commitment and I'm asking in good faith and that's what I love to tell people.
Speaker 1:
9:56
You and I just this week we're talking about it, a lender's failure to perform will cost you as a buyer. Thousands of dollars. Yes. Hey, and what you don't realize is that Bank of America, Wells Fargo, they're notorious for underwriting alone. A week before closing, after your financing, periods of after you've got real dollars on the table after you've completed an inspection, and if they don't perform, it doesn't cost them a dollar. It costs you lenders, failure to perform, borrower's going to cost you thousands. I'm passionate about helping you through this process, but before I can deploy the full resource of my office, we need you to commit in good faith to move forward with us. And so really when you're breaking it down, here's what it breaks down to is you've got to close. Is there anything that would prevent me from being your lender? You've got to help them understand that you and your team are not compensated unless you go to closing.
Speaker 1:
10:47
It's a big deal because people, I don't know if they understand where revenue comes from, but I don't even think they realize the fact that, you know, they wouldn't work for free and it wouldn't, I don't even know if they know it's commissioned based. No, I don't think you think a loan officer's commission base. I think it's just more of, Hey, you work for movement. Mortgage. Yeah. Surely somebody's paying you, you getting paid, you're just working. You're going above and beyond. They don't understand that. So I'm, I'm, I'm closing. I'm making sure they know we're not compensated. Uh, I'm making sure they know that I'm working in good faith and in good faith. I'm asking for their commitment and before I can deploy the full resource of our, our of our office, we need them to commit. And some of the people, guess what they say, Hey, I'm still shopping.
Speaker 1:
11:29
I'm not ready to make a decision. It's cool. And you know how freeing it is because then here's what we say. Excellent. I'm going to send you a loan officer preapproval, which they don't know this, but it's worthless. No, not totally worthless. It's not the same. It's, I mean, it's not an underwritten preapproval. So what happens is, is it allows us to know that we can choose not to respond after hours. We can choose not to, to move at a whim. You know, just on a whim and a diamond, you got to move right shift and focus on the buyers that have committed to using it, which are about 70% that upfront say, I'm gonna use you. And there's about 30% that say you're going to have to provide your best deal. And then you can help them understand too, when you're buying in a hot market, which the Houston market is super fast, multiple offers.
Speaker 1:
12:15
And here's what we help them with is that whenever we get you fully underwritten up front, you can remove the financing contingency and we can close you in less than two weeks. Yeah. And it gives you the competitive advantage in multiple offer situations. So really you're selling value up front. But I love this clothes because the clothes allows you to draw a line in the sand and either they do it or they don't. So Hey, let me just read it to you. Here's how it goes. You Ready? It's dope. I think it's great. So, hey jolay is there anything that would prevent me from being your lender? No, I don't think so. Hey, well I have to tell you, I'm super excited to work with you. And you know, one of the things I always liked for you to know up front is that my team and I are not compensated unless we go all the way through to closing and funding.
Speaker 1:
12:57
And so I think that's important that you know, because it keeps, you know, up front that me and my team were fully invested in your success from start to finish. And um, you know, we're working in good faith and so what I am going to ask is this, that you would commit in good faith to use us because we want to make sure that when you go under contract, it's not really the time to shop or to make any shifts. It's time to run fast and move quickly. Um, your commitment to work with me and my team. It allows us the opportunity to deploy the full resource of our office so that we can help you have the competitive advantage in today's marketplace. Let me ask you this, is there anything you think that would prevent you from allowing me to be your lender now, Steve, I think I'm all in.
Speaker 1:
13:39
Hey, well listen, we are so excited. I want you to make sure until Susie realtor what a great job we're doing for you. Because here's the thing, we're only as good as as we're helping her clients. So I want to make sure she knows we taking great care of you. Absolutely, I can do that. Oh, you can do that. Well, fantastic. Well listen, Hey, we're going to go ahead and finish through the process and then that's where I would just keep on running my clothes. So, oh yeah, that's it. So easy. Super simple. But it feels, I felt like I needed to commit. I'm invested in now. I'll tell you what we're seeing is that the longer it takes for them to go under contract, like three and six months, you got to continue to reclose them because they forget. Yeah. So, hey guys, I hope that helps.
Speaker 1:
14:17
And you know, one of the things that we want you to do, I'm going to ask you to continue to join us on our journey as we get better and make a difference. Yes. Subscribe on iTunes and share. You have to wear it out if you think this has been helpful, share it with several other loan officers that it might help follow us on Instagram at loan officer leadership. Uh, our online resources, our at loan officer, uh, leadership.com. Hey, and one other thing to email us. Any questions or topics? What you, what are you struggling with? What do you need to hear about? How can we help you? Yeah. And listen with that, we always want Hashtag grow and grind. Be purposeful in your growth and relentless in your effort because anything worth doing is worth doing badly. Just get started. I love it. See Ya.
Speaker 3:
15:10
[inaudible].