Dave: I can understand how frustrating this can be. You have actually asked two separate questions. Let me address them one at a time, though the answers are certainly interrelated.
First, is there more competitiveness out there today? The answer is yes.
Access to mortgage companies and information is so much easier in an online world. In the old days, shoppers had to call around for quotes. Today they can get multiple quotes online in minutes. How accurate these quotes are is quite another story as online systems do not paint a complete picture.
When a real estate agent meets with a client today, the client is much more likely to have already spoken to a lender and more likely to have a pre-approval in hand. Though the agent may refer them to you, you are already starting the process behind the proverbial “8-Ball” by being the second or third lender they have interacted with. Some agents will not even bother to refer you if the client says they already have a preapproval. In reality, that can be a mistake, because, again, online systems don’t tell the entire story. I can’t tell you how many stories I have heard from agents who have had deals blow up because they did not fully vet the preapproval.
The next question is: how do you win more deals when shopping is rampant? The answer is to get to the consumer as early as possible in the process. The earlier you get with the consumer, the easier it is to develop a relationship and deliver value to the process. One can see if you find out about a deal the day of ratification and the borrower has already been prequalified and worked with a lender for weeks or months, you will be behind that 8-ball.
Your only chance will be to beat the rate and most likely substantially. Or perhaps if the lender messes up the deal, you can rescue it. Either way, I don’t like your chances. Getting to the prospect earlier is going to give you a much better shot at winning the deal. With so many lenders advertising directly to consumers, it is really tough, especially in today’s online world. So how do you get to the prospect earlier? I'll address that in my next column.
Dave Hershman is Senior VP of Sales of Weichert Financial and the top author in the mortgage industry. Dave has published seven books, as well as hundreds of articles and is the founder of the OriginationPro Marketing System and Mortgage School – the online choice for expert mortgage learning and marketing content. His site is www.OriginationPro.com and he can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it..
