Today, I’m going to share how you can win more rate shoppers.
You work really hard to prospect referral partners to send you quality leads, to accurately structure the pre-approval and to answer questions after hours…only to be hard core rate shopped at time of contract.
…and worst yet, they go with another lender and ghost you.
It’s like the borrower came into the electronics store, touched all the equipment, asked a million questions and then ended up buying the product on Amazon.
By having a better overall process and scripting from the onset, you will greatly lower the probability you’ll be left standing alone at the altar after months of dating.
(Sorry, I am on a roll with all the analogies today, lol).
Reference this framework moving forward:
The key to winning more rate shoppers starts at the very onset.
Step 1: Audit the Referral Process
You’ll be amazed at what some of your referral “partners”, especially some Real Estate Agents, might say about you before formally introducing you or giving out your name (more on the latter in a future newsletter on how NOT to be referred with multiple lenders).
So it’s important to audit that part by saying this:
You: “Hey [Realtor], I don’t think I’ve ever shared what I say about you during the first few minutes of every initial loan consultation with the buyers you refer me. Can I share with you what I say?
Realtor: “Sure”
You: “Cool, well, I want the buyer to know you are really good at what you do, so tell me if it’s okay if I say this:
‘Hey [Borrower], I am so happy [Realtor] connected us, how do you know [Realtor]….
Nice! Well, when buying a home, your team of professionals supporting you is so important and it all starts with the right Realtor.
I have known [Realtor] for some time and she/he is patient, knowledgeable and will have your best interest first.
If she/he says to walk away from a home, listen to her/him. And if she/he says to make an offer, trust her/him as well.’”
Realtor: “Wow”
You: “How do you typically hype me up or exalt me to your buyers before actually connecting me?
Realtor: “Well, I tell them…”
You: “Do you mind if I share with you how to best introduce me so the homebuyer feels confident in our partnership?
…Nice!, well, please say this:
‘[Your name] is a great Loan Officer, one of the best actually. He/She is well regarded for educating homebuyers and having his/her name on the pre-approval letter will go a long way as many Agents locally trust his/her work.’”
Boom.
Control the language and narrative.
If the Agent says something like:
“[You, the lender] have low rates and to shop around…”
Say this in response:
“I would never tell a prospective homebuyer that your commission is the lowest or to shop you.
I trust you and want you to win, and honestly [Realtor], referring multiple Loan Officers just confuses an already confused homebuyer.”
Remember, to express all this with kindness.
Step 2: Poke Holes
Now that you have been referred strongly, it’s time to identify your rate shoppers early on and to poke holes at their experience with the other lender(s).
First things first, if you have the application completed in advance of your initial loan consultation, take a look at the credit report for other mortgage inquiries.
Secondly, ask this:
You: “I am so excited to support you with your home purchase and to give you the education you deserve to make sound financial decisions. Out of curiosity, have you ever been through the mortgage education process?”
(Notice I didn’t say “have you been pre-approved?”)
Homebuyer: “uh, yeah, we spoke to our current bank (or whatever lender)”
You: “Nice! I am happy you took some initiative already. How was your experience with them? Did you walk away feeling impressed?”
Chances are that they had an underwhelming experience.
“I know rates are a big hot topic right now, so please trust that I do much of that due diligence for you to ensure you get a competitive rate. It’s my priority to help you comfortably afford your mortgage payment so you can still save.”
Keep in mind that hard core rate shoppers will always be hard core hard shoppers regardless on what you say (in most cases), but with having a dialed in professional loan consultation with a good tech stack (i.e. Mortgage Coach), you’ll bend the probability curve.
Step 3: The Tie Down
Your pre approval-to-lock process must be tight, you need to have proactively:
Once the contract comes, all this lead up work will help you stand out on the most important point-of-sale:
The Professional Rate Lock Consultation
In a future LO Launch Letter, I will really break this important call down way more, but you will have to talk about the 800 pound gorilla of being rate shopped.
Once you get the interest rate part of the call, say this:
“…I really like this payment for you and actually feel like this mortgage is a stepping stone loan. It’s predicted that rates will drop again in the near future so when that happens, rest assured that I will call you to refinance, which is very seamless to do, with very minimal fees…
Secondly [Mr. Borrower], I know rates are just a hot topic right now, do you have any reservations at all about this loan program and rate I feel is best for you?
[Pause, listen]
Cool, please remember that you will start to see a lot of online lenders publishing deceivingly low rates that most often carry extra fees. I just ask that you come to me first and allow me to give you my professional opinion, does that sound fair?
And lastly, please keep in mind that a large part of your offer being accepted is because our preapproval letter was underwritten and I personally called the Listing Agent.”
At minimum, you’ve given yourself the best opportunity to not be ghosted and to have the homebuyer give you every opportunity to move forward.
And remember, if you lose the rate shopper now, it doesn't mean you've lost them forever.
Put them in your rate alert program and wait patiently for the next refinance boom :)
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