Mortgage technology and beyond: Every successful professional has a coachJohn D. SvirskyThe Mortgage Coach, mortgage software and programs
Whether in sports, the arts or business, those who reach the top
of their field have a coach - someone who can help them reach their
peak levels, someone who can challenge them to raise the bar and
accomplish more in less time, someone who helps them to find a way
to distinguish themselves from the crowd. The Mortgage Coach
received my five-star review about four years ago and they have
improved the product since then. In my opinion, they have made it
better and easier to use. It maintains its five stars. The major
problem with The Mortgage Coach is if you stop using it, it doesn't
work for you. People like Tim Braheem of LoanToolbox (another
five-star program) will not take a loan application without using
The Mortgage Coach; others include Steven Marshall, Jim McMahan and
Barry Habib. Each of these professionals has written more than a
billion dollars in loans. They use and recommend The Mortgage
Coach. However, I have not written a billion dollars in business
during my career, yet I also love Mortgage Coach and so do my
clients who benefit from my using this program.
A common trait of mortgage brokers who earn more than a million
dollars a year in income (and in the past few years, there are many
who do) is that they have all found a way to distinguish themselves
from the myriad of competition out there by giving the customer
more than other mortgage brokers. The really successful mortgage
broker finds a way to give back. I am not talking kickbacks; I am
talking about educating the client and giving them information to
help them plan their financial life. As mortgage brokers, we see
the client's entire financial life. It is painfully obvious that
very few people have been disciplined enough to save for the future
so they can either pay down their mortgage earlier or make
investments to increase their net worth.
Forgive this long-winded introduction; The Mortgage Coach is a
truly great product. There are some who will say that Point or
Encompass offer some of what The Mortgage Coach offers. Others will
say they do it themselves on a Microsoft Excel spreadsheet. I say,
terrific for them. But since more than 20,000 mortgage
professionals have bought and used The Mortgage Coach, I am willing
to bet that many if not a majority of the 20,000 users are in the
million-dollar club or higher. Why? Because those who use The
Mortgage Coach have gone beyond just taking the application; they
have followed the route of being a trusted advisor, a mortgage
planner and a mortgage manager. The truly successful mortgage
planner/ manager looks at our business in terms of giving excellent
advice and helping the client make the right mortgage decision for
their needs. To do this, the professional broker gives them
information they can use on a regular basis. In order for this
service to be valuable, the mortgage professional must ask the
right questions of the client; otherwise, you get "garbage-in,
garbage-out." The Mortgage Coach asks the right questions and when
answered by the client, provides detailed analysis and answers
various "what if" scenarios to enable the client to make
knowledgeable choices based on numbers rather than a flip of the
coin.
So what are the right questions? Besides name, address and birth
dates, the following are good questions to ask:
- What is your tax bracket?
- When do you want to retire?
- In how many years would you like to pay off your mortgage?
- Is there an investment plan, or do you want to use the equity
built up in your house as a savings tool?
By knowing what the customer wants, you can provide them with
the right product and, more importantly, the client is part of the
process and looks at you as someone who showed them why they are
doing what they are doing, rather than just being told, "This is
the lowest interest rate, so take it."
The biggest improvement to The Mortgage Coach is the dashboard.
I like the program itself. It is simple and laid out well. From the
dashboard you can navigate to any of the other five areas that you
will be using on a regular basis. First, click on the client
database. Here you enter the vital statistics: name, address,
Social Security number, etc., and also liability information. Armed
with the basics, this information auto-populates throughout the
rest of The Mortgage Coach modules.
The "Total Cost Analysis" is everyone's favorite; here you can
show the client four different loan programs side by side and in
color. Show the net cost of first and second if you are doing a
piggy versus PMI, versus five-year interest-only, versus 30-year
fixed. You can show anything the client wants to see; you can do
four comparisons at a time and then you can show the comparisons
after five years, seven years or any other period of time. Now here
is where The Mortgage Coach shines: You can show the customer the
effect of making extra payments to pay down the mortgage, or if
they don't make extra payments but invest consistently, what
percent of return (fill in the blank) per year they can expect, how
much their investment account would be worth. You can then compare
the after-tax benefit of pay down versus equity investment. What
financial planner, accountant or tax adviser would not recommend
you to their clients once they see the professional reports and
information you provide, thanks to this software? This one module
will break down most sales resistance and distinguish you from the
hoards that just want to do the mortgage and run.
Well, there is more to offer. The Mortgage Coach has a "rate
watch" module. You fill in the high and low filters and how often
you want to send out notices. I suggest you e-mail this to all your
clients on a monthly or quarterly basis (make sure you get their
authorization to e-mail or fax beforehand). The hidden benefits of
this module are the referrals that come from your present client
base. If a client's mortgage broker sends out a rate watch report
just to keep them abreast of the mortgage market, it means that the
client is valued for more than one closing and they will tell their
friends, neighbors and family that they are dealing with someone
who is an authority in the mortgage business.
The "equity repositioning" module is a must when you are working
with financial planners or advisers. It shows the borrower the
advantage of consolidating debt and investing the savings. It
clearly illustrates the benefits of restructuring their debt and
saving the extra money instead of using the lower payment to buy a
new SUV. The Mortgage Coach can show your client and financial
planner how these small regular payments to savings from the
refinance can produce big long-term savings and net worth in the
future. Once again, you are showing that you are a mortgage
professional who helps your clients help themselves. That is why I
love this business; we not only get to make money, but we get to
help people as well.
There is a big market out there for those renters who have not
yet made the decision to buy a home. For them, The Mortgage Coach
offers the "rent versus own" module. There's nothing for me to say
except that it works. It shows the fence-sitter which way will make
more sense for them, taking into account principal, interest, taxes
and insurance (otherwise known as PITI), tax bracket accumulated
appreciation and prospective rent increases, and then shows the
difference after whatever period of time you set.
The last and very important module is the "debt consolidation"
module. You can show your clients how much they will save by paying
off those high-cost loans and credit cards. It is really easy to
customize these reports the way you like it, showing a client how
long it will take to become debt-free by making extra payments, the
effect based on their tax bracket. Rather than giving the client a
15-year fixed-rate mortgage, ask them how much of an additional
payment they can afford to make each month and you can show them
how soon they will pay off the mortgage, and how much interest they
will save by doing so.
Instead of me going on with this review, I suggest visiting
their Web site, www.mortgagecoach.com.
There are excellent training videos that you can explore before you
buy the product. Take it for a test drive, get the demo or just buy
it; there is a 30-day money back guarantee. Go to a financial
planner and try it out. See how quickly this product will pay for
itself, not only financially, but in the increased respect and
referrals you receive.
Product Summary
Product Name: The Mortgage Coach
Version: 6.1
Web Site: www.mortgagecoach.com
Recommendation: Buy it. This is a five-star
product, I love it and I use it. The more I use it, the more it
works for me. I highly recommend this product to be used before you
even take the loan application. It will eliminate the rate-shoppers
and encourage your clients to think of you as more than just a
mortgage broker. You become a mortgage professional who not only
helps them get a mortgage, but also helps them plan for their
future.
John D. Svirsky has been a mortgage broker for 24 years,
doing both commercial and residential mortgages. He is also a
volunteer firefighter, avid cigar enthusiast and cook. He may be
reached by phone at (845) 424-3388 or e-mail
[email protected].
