Take the offensive and educate your borrowers
Your borrowers are currently being bombarded with rates and fee quotes. You can choose to ignore it or you can do what I do and realize that 'the best defense is a very strong offense.' It's very important to realize that your clients may not even bring up the rate issue, but understand that it is on their minds
Why is it usually the first question? They open the paper and see low rates and 'no closing cost' loan advertisements. They listen to radio and TV and hear rates. They drive down the freeway and see giant billboards advertising teaser rates that are usually too good to be true. I recommend giving them the information head-on with the facts, whether or not they ask.
- Explain that what they see in the paper is old news since rates change daily.
- Explain that some lenders will tell you no points and then charge you an origination fee, which of course is the same dollar value of a point.
- Explain that rates may not even be the issue, and that it's more important that they have the right product that meets their financial goals.
Here's the bottom-line: You must educate your borrowers. You are the expert in this niche. My borrowers are pleasantly surprised that I am actually providing them with information they should use to protect themselves. Now, I am a trusted advisor in their minds, and much closer to earning the deal.
So take the offensive and separate yourself from all of the competition. Take the offensive and educate your borrowers!
Shawn S. Sajadi
E*TRADE Financial
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