Skip to main content

Technology is Great, But . . . (Posted November 30, 2015)

Obviously trying to appeal to the Millennials, some mortgage companies are starting to advertise an online mortgage process – you “simply” upload all your financial information, complete the application, click on a few buttons to customize your interest rate and mortgage terms, use their e-signature option, and bam: you get instant notification concerning your loan approval.  While that concept is very appropriate for registering your car at the Motor Vehicles Department (it’s a wonder they haven’t done that yet), there’s SLIGHTLY more to it than that. 

I don’t want to lose you here, so I won’t go into all the nerdy details, but suffice it to say there’s abundant reason you WANT a loan originator talking to your client and walking her through the process from start to finish.  Let me give you just two:

•  If a borrower’s information is input incorrectly or placed in the “wrong box” on an application, that can stop the process dead in its tracks.  A computer’s not going to give an applicant a “heads up” – it’s just going to kick out a message that the person’s application is not approved.  The applicant, in this instance, is either going to give up and continue renting for another year or start over (and perhaps get the same results because she’s being forced to guess what went wrong the first time).  While we, of course, are trained to put the information in the right boxes, we’re also human – if a mistake is made, or there’s something that comes back from underwriting that needs to be addressed, we human LOs pick up the phone and speak with another human; it gets corrected.  The process continues without a delay and stays on time.
•  Giving the applicant the option to just click a few buttons and “customize” their interest rate and terms doesn’t explain all the other options available to them that could be better suited to their current situation and, perhaps, their long-term goals.  Also, giving them such an option doesn’t guide them to let them know what’s truly available to them based on their financials, their debt-to-income ratio, etc.  When we talk with your clients, we walk them through the available options and give them a detailed understanding of how those options will play out in both a short- and long-term fashion. 

The challenge here is addressing this “online” mindset. They went online for ease, convenience, and options.  There’s really no way to “stop” people from going online and giving this option a whirl, but when they come to you frustrated from having a less-than-optimal experience, you’re going to want to refer them to a mortgage company that has the most options and the most knowledgeable LOs so your client has a fantastic experience.  We might just know someone like that.

Comments

Popular posts from this blog

An Age-Old Concept Reaping Future Rewards

W hy are social media like Facebook and Instagram so darn popular among real estate and mortgage folks?   Hint: the top reason might be an endless supply of memes, cat videos, and the chance to be snarky, but the other reason runs a VERY CLOSE second.   Give up?   Answer:   They’re free – and they really help even the playing field by enabling a one-person shop look and market like an organization who employs an army of wordsmiths and graphic artists. This new century is glorious, right?   With that in mind, let me re-introduce you to a centuries-old concept that is equally glorious – and can help IMPROVE the playing field for you, regardless of the size of your team: karma.   On the subject of “free”, I’m not suggesting that you work for free, but when you freely give of yourself and your knowledge, you’ll see a greater payoff, I promise! Recently, an agent came to us with a question: she has a client who is looking to sell his condo.   It...

The Power of Doubt

We find ourselves in that weird week between Christmas and New Year’s – that week that feels a bit like the Twilight Zone where no one’s sure what’s real and what isn’t.   Because of that, most people tend to focus on one of two things: eating as much as possible or setting goals for the upcoming year.   The former is squarely focused on the present – how much can I stuff into my gaping maw at this very moment before I pass out and/or puke – while the latter is focused on the future.    Last week, before the Twilight Zone kicked into full gear, I read a short article that resonated with me, and I think it’ll prick up your metaphorical ears, too.   The author of the article is a gentleman who professionally trains Olympic athletes, and he highlights the talents of a particular athlete from the Philippines who is training to be a marathon runner.   He points out that this runner is not a professional athlete, nor does she receive any type of financ...

Get to the Point (Posted February 29, 2016)

As you may have already noticed, there’s some amateur art included in this week’s newsletter.   While it’s certainly better than a crayon drawing that might grace a refrigerator that’s supposed to be “mommy” but looks more like a B-movie creature, we all acknowledge there’s a reason the guy in our office who drew this . . . i s still working in our office rather than making a living elsewhere.   Be that as it may, there’s a point to the picture: is this how you’re allowing your client to choose their mortgage company?   In many cases, it’s probably not too far off.   Agreed, it’s wise to stay on the right side of the law and be sure you’re never accused of “steering”.   With that in mind, many agents tell their clients that it’s completely their decision as to what mortgage company they use (and it is, of course) and effectively step back from the entire conversation – using the illustration to the left, they’re putting the blindfold ...