Ethics is the study of conduct or moral judgment. As we begin the new year, think about maintaining or setting higher moral standards as a mortgage professional and consultant. Here are some important considerations:
- Explain carefully to your client the disclosures he is
- Council and advise your prospects and customers on the importance of their credit reports and scores.
- Reiterate to your clients the consequences of having numerous inquiries on their credit reports.
- Send out and sign documents in a timely fashion.
- Clearly articulate what discount and origination fees are being charged.
- Remember to concern yourself with the long-term success of your clients. Short-term fixes may be detrimental to the borrower. For instance, watch for prepayment penalties that are over three years.
- Find a way to assist the customer in meeting his homeownership goal, even if it takes several months or even years. You are his trusted consultant.
- Customer service always matters. Your customer is the first priority.
- Understand the needs and wants of the client and properly assess what is best for him. Consider cost, quality of product and the timeliness of his desires.
- Be patient and concise while dealing with your prospect or client. He will likely not understand mortgage jargon.
- Keep your client apprised of what is happening with the loan. It is better to overeducate than to keep him guessing.
- The customer, through the Internet or competitive shopping, will gain knowledge and understanding about various financing options. He is smarter than you think.
- Look, listen and be proactive. Financing a home requires an ethical and responsible mortgage professional. This is one of the most important monetary decisions a client will make in his life.
Practicing proper ethical behavior can make the sales process easier for the client or prospect. The industry's reputation is riding on it. Furthermore, it will make the client appreciate your services. In the end, being more candid will allow the customer to be treated more fairly, leading to more referrals and greater income for the mortgage professional.
Jeff Barr is a competent toastmaster and speaker in Louisville, Ky., an adjunct professor of communications at the University of Louisville and a mortgage loan officer. He can be reached at (502) 777-9555 or e-mail [email protected].