As a loan officer, it is your job to provide the best mortgage service to your clients and help them understand industry shifts. That being said, mortgage rates moved slightly higher at the start of 2021. Freddie Mac reported that the 30-year fixed rate mortgage moved up to 2.79%.
Whether due to the economic recovery, or the likely spending spike from a Democratic president, Congress, and Senate, these rates are slowly rising and making headlines.
Then, customers read these headlines and call their loan officers for more information. So, answer the call, and keep reading to learn how to serve as a trusted advisor to your clients.
What is the customer mindset?
Often driven by fear of missing out on historically low rates, customers reach out to their loan officers for guidance. Homeowners who have not refinanced this year are trying to do so before the opportunity ends.
For you, as an originator, this could give you the chance to generate large volumes. If you can stay ahead of this information curve, you can have an added advantage by answering these client calls prepared.
Follow the data
The data that is reported within the mortgage industry is sometimes a week off. When customers hear that rates increase, they reach out right away. But, by then, rates may have already leveled back out. So, originators are able to give a better rate than the Freddie Mac average.
Ease customer worries
Fresh news of market-driven rate spikes can cause customers to worry. Also, moments of political or economic uncertainty can spark panic shopping in consumers. But, shifts in a few basis points should not be the only difference-maker for a customer.
So, when rising rates hit the headlines, do not pile on your marketing efforts. Instead, allow the headlines to bring customers to you. Thanks to consistently high volumes last year, you can focus on delivering high-quality service to your borrowers.
Serve as a trusted advisor
Until you have trust in your mortgage client relationships, you are just a provider of services. So, you need to build that trust. The first thing that loan officers can do is trust their own abilities. This will allow you to successfully deliver a great experience for your client from the start.
An important characteristic of a trusted advisor is going above and beyond to add value and provide the best mortgage service. A trusted advisor understands what the client needs, and prioritizes that. Then, the borrower will see that you place their interests before your own. Also, your mortgage client relationships need to be based on mutual trust. After all, refinancing or purchasing a home are huge financial decisions. Understanding this will place you above competitors.
How can you provide the best mortgage service?
Gaining trust from your mortgage clients is critical, but it will take time. Focus on developing strong listening skills, and become your client’s go-to when they have questions or concerns.
Successful loan officers rely on experience and ethical behavior. Also, transparency is an important characteristic to implement into daily work and life and provide the best mortgage service.
Communicate mortgage industry updates
A consistent loan officer maintains regular communication with the borrower. This can be done via emails, texts, or calls. Staying connected with clients before, during, and after the loan process reassures your borrowers that their loan is in good hands. And remember, always make your current mortgage clients your priority.
Focus on educating, explaining, and offering your customers the right deal for their needs. Often, prospects might come to you during rate-anxious times, comparing their situation to others. It’s up to you to explain current industry updates. Get your customer the best deal you can for them, rather than focusing on what you wish you could do.
Send mortgage clients helpful educational content
Your clients look to you for how they can get the best deal on their mortgage. Jungo has many resources for you to grow your mortgage client relationships. Add The Closing Email of the Week to your Jungo account and send it as a mass email to clients. Also, you can send your clients informational blog posts, on subjects like renting vs. buying, credit scores, and pre-approval.
Placing your leads, current borrowers, and closed clients on drip email marketing campaigns automate much of your communication with them. So, this will free you up for more check-in calls to provide the best mortgage service you can.
All of these resources will help you build even stronger and more profitable relationships with your borrowers!
Customer fear of missing out is an opportunity for loan officers to provide the best mortgage service. Transparency and patience are needed in these situations. Matching the customers’ expectations with information that truly aids them will establish a sustainable partnership. Serve as the voice of reason, secure what your customer needs, and be confident that they can still earn a low rate.