Tradesies, Anyone?

Partnership matters more than ever to real estate agents with fewer referrals to offer

Insider

Contributing Writer

Where can loan officers (LOs) find the elusive purchase borrower? Many lenders have originators who are looking for leads in unconventional places. LOs are making the rounds at remodeling shows, for example. Builders focused on that business often know of someone in need of financing before anyone else.

There are LOs teaching classes at local community colleges and high schools to put their name in front of future home buyers. Originators are contacting human resources staff at local companies, who know of employees and recent hires searching for homes.

Some originators are focusing on the future market, since buyers need to think long term. “Don’t bail out because rates are high now because, of course, it won’t last forever,” they tell prospective buyers. “You can probably find a house now at a lower price than you will be able to a year or 18 months from now. If someone has a house on the market at this time of year, with the summer here, and with conditions the way they are, you can bet they are a real seller — and probably happy to negotiate with you!”

Rates will fall eventually. Predicting when and by how much is notoriously difficult. When rates do fall, your previous clients can refinance at a lower rate. When their payments go down, and possibly substantially, it’s like getting a raise! However, falling rates mean there will probably be another purchasing frenzy and prices will get bid up. If someone buys a home now they will already be in the house when that happens and able to reduce their payment with a refinance.

Real estate agents want to treat loan officers as partners. They need a loan officer with good follow-up skills and with a system in place. Tell the agent how you keep in contact with the leads they give you. How often do you contact them? Do you handle leads differently during the process of securing a loan? Loan officers want to receive every lead their agent partner gets.

But, the shortage of sales means referrals and leads are precious now for agents. Often, a real estate agent will not give a new originator a hot lead; there is too much to risk. Expect the opposite to happen, actually. The agent will work with a lead that you provide.

Real estate agents don’t want originators that are merely transactional. They want someone who sits down with clients and educates them on the best products for their situation, returns calls, and communicates throughout the transaction, keeping the agent updated all the while.

–Rob Chrisman

Having the best rate is not always a path to sure success because real estate agents like information. Knowing that, for example, call a new agent and tell them how you are navigating the home insurance situation that we are experiencing. Reinforce that pitch with success stories. Have five to ten insurers that the agent doesn’t know about and share their info.

Be realistic about interest rates, especially buy-down rates. How can it help clients? Sure, there are savings up front. But, what happens in three years? Be able to answer that question with authority. Share examples of monthly costs. Sit down and educate the agent. Ask them, “What price range do you normally work within?”

Providing a sheet for agents to have at their open houses, detailing various options, gets loan officer’s names in front of prospective buyers, too. Educate agents on how they determine that a buyer may be eligible for certain types of financing. Teacher loans? Doctor loans? VA loans? Explain the differences between owner-occupied and investor products. Open the agent’s eyes to new products. Be pragmatic, informative, educational (but not pedantic), and a collaborator.

Business has been slow, and with rates where they are, we can expect business to stay slow. Taking time to “recharge your batteries” is a good opportunity for lenders and originators to train themselves on new and existing products, familiarize themselves with their company’s software, rendezvous with former clients, and continue to improve as subject matter experts for the future.