One of the best ways you can give value to your referral partners is by being a conduit for buyers to afford the home of their dreams through mortgage planning. So here are a few quick ideas that can really help get deals done.
Let’s face it, with today’s real estate values, this can be a huge lift. Employing strategies like showing customers the increased tax advantages of a higher value home with a tool like the move-up tax analysis (offered by Majestic Consulting) can show customers the real cash tax savings. This tool would help the customer see that the additional interest deduction goes a long way toward offsetting the higher payments of a larger home. For example, if you have a $400,000 mortgage at 6.5 percent interest (assuming a 28 percent tax bracket), the customer could potentially save as much as $7,280 on their year-end tax bill, which is just over $600 a month. Of course it is important to check with a qualified tax advisor to confirm each specific case. And, if you take it a step further, by showing the customer how to reduce their monthly tax withholding (from their paycheck), it makes that monthly payment much easier to afford. In doing this, you will help both the referral partner and the buyer.
Rent versus buy
Another strategy that can be used to overcome deal challenges is to show the buyer the benefits of owning their home in a “Rent Versus Buy” comparison. For example, showing them a chart can go a long way toward making a purchase happen.
Why do all this?
I encourage you to realize that by helping referral partners with their business, you as a lender can create an incredible opportunity to work with and gain access to several hundred buyers for very little cost. When you bring additional value to your referral partners, you become a true partner in their success. And in a tight market like today’s market, you have to do everything you can to generate leads.
Erik Janeczko is a coach/certified instructor with Maximum Acceleration, the LoanToolbox Coaching System. He may be reached by phone at (314) 635-5090.