Loan Officer Sales Training 06/10/24: Mortgage Sales Cycle

In this episode of "Loan Officer Sales Training," we take a comprehensive look at the mortgage sales cycle—a critical process that every successful loan officer must master. Join us as we break down each stage of the cycle, from lead generation and initial contact to application processing, underwriting, and closing the deal.

Our host will provide actionable tips and strategies for effectively managing each phase, ensuring a smooth and efficient journey for both you and your clients. We'll discuss best practices for nurturing leads, building strong client relationships, and overcoming common obstacles that can arise during the sales process.

Whether you're new to the industry or looking to refine your skills, this episode is packed with valuable insights to help you enhance your sales techniques and close more deals. Tune in and elevate your mortgage sales expertise to the next level!

For more episodes visit:
https://themortgagecalculator.com/Page/Loan-Officer-Sales-Training-Podcast

About The Mortgage Calculator:

The Mortgage Calculator is a licensed Mortgage Lender (NMLS #2377459) that specializes in using technology to enable borrowers to access Conventional, FHA, VA, and USDA Programs, as well as over 5,000 Non-QM mortgage loan programs using alternative income documentation! 

Using The Mortgage Calculator proprietary technology, borrowers can instantly price and quote thousands of mortgage loan programs in just a few clicks. The Mortgage Calculator technology also enables borrowers to instantly complete a full loan application and upload documents to our AI powered software to get qualified in just minutes!

Our team of over 350 licensed Mortgage Loan Originators can assist our customers with Conventional, FHA, VA and USDA mortgages as well as access thousands of mortgage programs using Alternative Income Documentation such as Bank Statement Mortgages, P&L Mortgages, Asset Based Mortgage Programs, No Ratio CDFI Loan Programs, DSCR Investor Mortgages, Commercial Mortgages, Fix and Flip Mortgages and thousands more!

Our Mortgage Loan Originators are trained to be loan consultants to guide borrowers throughout the entire loan process. A licensed Loan Officer is only a phone call or zoom meeting away and always available to assist borrowers throughout the loan application process all th

The Mortgage Calculator is a licensed Mortgage Lender (NMLS #2377459) that specializes in using technology to enable borrowers to access Conventional, FHA, VA, and USDA Programs, as well as thousands of Non-QM mortgage loan program variations using alternative income documentation!

Using The Mortgage Calculator proprietary technology, borrowers can instantly price and quote thousands of mortgage loan programs in just a few clicks. The Mortgage Calculator technology also enables borrowers to instantly complete a full loan application and upload documents to our AI powered software to get qualified in just minutes!

Our team of licensed Mortgage Loan Originators can assist our customers with Conventional, FHA, VA and USDA mortgages as well as access thousands of mortgage programs using Alternative Income Documentation such as Bank Statement Mortgages...

Transcript

Restream recording Jun 10, 2024 • 04:01:51 PM: 0:00

I'm going to keep it pretty short today, but it's definitely a great topic to go over here now, especially for newer loan officers that may not know some of these statistics. So let's go ahead and go through it. So today we're talking about the mortgage sales cycle. Now, what I mean by that. They could kind of mean two different things, right? The sales cycle one time with one sale, right? And how long that takes to go through the cycle. But really today, what we're talking about is the cycle that a client goes through in life, meaning purchases, refinance, purchasing a new home, right? There's, there's a cycle that happens with clients. So let's go ahead and talk about it. So here are the stats. The average American buys a new home every eight years. Right. And they refinance on average every three to three and a half years. So you're looking at three transactions every eight, nine years per client, you know, on app. And so, you know, that's important to keep in mind. We're not just getting a client for one transaction. We're getting a client. For tons of transactions and as you can see right here, the statistics tell you that you're probably going to get about three transactions every maybe 8, 9, 10 years from each client and for us here at the mortgage calculator, especially we're in this for the long run. We're not here to get rich quick. So we're trying to get these clients for now. Investors obviously are constantly buying, constantly refinancing to buy more property. So those stats up at up top are for primary homes, right? But. At the mortgage calculator, especially we deal with so many investors. That's what's so great about it is that they're always buying and refining and selling and to buy a new home and refinancing this one to buy another one. And so the investors are great to work with, especially because investors are still going to be doing that activity, even when the rates are high, right? That, you know, that's what. Gets us through the hard times. It's having investor clients that we're serving their purpose by they're still getting their transactions done and making money. It doesn't matter what the rates are, right? They're gonna, you know, we're going to help them figure out a way to make their deals happen for them to make money. So investors is a whole different story right now. It's kind of, blocked here. Actually, I need to. Change this wrong graphics up here. There we go. Oh, now it works. Okay. So a lead is forever, right? And a client is for life. So we talk about this a lot. the, the whole elite is forever, motto there, but a client is for life. And this is exactly what we're talking about here. Every eight, nine, 10 years, you're ending up with three transactions. So, you know, 20 years, 30 years, we're talking about three, six, 9, 12, who knows how many transactions you're going to do for the same person. over time, especially if we're dealing with investors. So just make sure we have the right mind state, especially for the newer loan officers coming in to the business, understanding that that's how this works. You're gaining clients for life, and then you're turning those clients into referral earners that are referring you business for life and then continuing the process with whoever they refer you to. So when we're discussing, you know, with our clients, especially the, you know, initial phone call, maybe second phone call, and we're asking them what they're looking to do, we're not just going to be talking about their short term goal, which is the immediate thing, right? Obviously, why did you click the ad? Why did you contact us? What is it that you're looking to accomplish right now? But also let's talk about it. Thank you. The long term goals, because we want to look at that as the average person is going to do those transactions. So we should be talking to our client about when and why they are going to want to do those transactions and how we're going to help them do those transactions. Do they have a plan? Do they want to? Move into a bigger home, you know, maybe in three to five years, they think they're going to get a raise. So then they want to save all the equity they can and then refi out of it, you know, and then use the cash to put down on either an investment property or a new home or whatever the case may be. Right. We're going to talk to them. What is your long term goal? So that as a mortgage consultant, we can consult them, excuse me, on how the mortgage part of that, right? They can talk to the realtor about buying a home as a mortgage professional. We're going to consult them through, look, are you looking to buy investment properties maybe and build your wealth and your portfolio? Or are you looking to upgrade? To a bigger home because this isn't really as big as you want. You didn't get the home you wanted. So our plan is in three years to five years, buy a new, even bigger home. I mean, these are things where not only are we consulting them on the process, not only are we talking about maybe refinancing, uh, to get off PMI or refinancing for a lower rate or refinancing to get cash out to purchase an investment or a home. Or a home, right? We're not just talking to them about those things. We're talking to them about everything. Okay. Well, if you're going to get a larger home in five years. We're also going to need more income. Is that going to be, you know, happening or if, you know, if their credit isn't that great. Okay. Well, then over this time, let's get your credit improved so that we can actually buy that bigger house. Because right now, with your income and your credit, even if you had a bigger down payment, we wouldn't be able to get. The home that you want, right? So now we're consulting them through what is the actual plan to accomplish their goal. So just keep in mind, we are not here to do one transaction. We're not here to sell loans. We're here to help clients. And accomplish their goals. Now, if we don't even ask them their goals, then what are we doing? Right? Yes. Talking to them about the one transaction that they clicked on the ad for that they need immediately, immediately right now. Sure. We can help them out with that. But did we really do our job as a mortgage consultant, knowing this borrower is going to do on average, the statistics, the statistics tell us three transactions every eight, nine years. Did we do our job of consulting them through all of those transactions? Did we do our job at setting up this transaction to properly meet their goals in the future, right? It's not just about, hey, you know, after we do this one, let's talk about whatever your other goals are. Well, no, we have to, what if this loan has, you know, Affects what they're looking to do in the future where plenty of loan products would do that. There's plenty of situations where you could put them into a loan product that is counterintuitive to their goal in the future, solves their short term problem, but does not accomplish their long term goal. So if we're not asking them their long term goal, if we're not planning these things out, then we can't really properly assess their current situation that we're trying to deal with. So you see how it's very important here. To, you know, Jose talks a lot about how important that interview is with the borrower and asking questions. And a lot of loan officers accomplish half of this, which is asking what their goal is right now. But the other half of loan officers never actually ask what's your long term goal. Because I'm here to consult you through the entire process. Tell me where you really want to end up. Or what we're really looking to do over the next 10 years. And let's break it down from there and talk about the best way to get there, which may include us choosing a different loan product right now to set ourselves up in the future for what we're looking to do. Different loan product, different LTV, whatever it may be. Things can change depending on what we're planning to do in the future. Right now, here's an example scenario. Just, you know, the, the cycle, right? Somebody purchases a home. Let's say they're a first time home buyer. Let's say they purchase a home later. We refinance them to remove PMI maybe. And again, this is different for everybody. Just an example here. And then maybe later we cash out three years later. Something like that. They have more equity and we do a cash out and we purchase an investment property for them with a DSCR loan. All they need is what 50 grand or something to get a, you know, 20 percent down on a nice little rental property for them to have to start building their real estate portfolio and building. their wealth, or maybe they're looking for cash out so they can start the process of finding the next primary. Maybe it's a bigger one. You know, whatever the case may be, we need to know what they're looking to do, and you'll see that they can go through this process, and then they're going to repeat the process. They buy a new, bigger home, and then they're eventually going want Refinance that to either remove the PMI or to get cash out or to lower the rate. And then, you know, again, we can talk about buying investments or a bigger one. It just, it doesn't stop. Right. The statistics are real. This is actually what's happening in America. So if you're on the sideline and only worrying about one transaction, you're missing the whole thing, right? These, this is actually happening. So every loan officer, that's a true loan consultant that gets clients for life. Those are the transactions they're getting. This isn't an abstract thing. Those are the numbers. Every single loan officer, well, not everyone, but on average, every loan officer that has a client for 10 years is getting those transactions. So we just have to make sure that we are going to have our clients for life for the long term. And the best way to do that is to ask them, what are your long term goals? So I can help you get there and we can plan for that. So again, uh, wanted to keep it short here today, but just, just know it's probably about 50 50. I think 50 percent of loan officers, you know, ask what their goal is for now. Okay. But I think half of the people are missing the boat on asking their long term goals, planning accordingly, and remembering that this isn't an after the transaction discussion. That's, this isn't a discussion to happen after the transaction that's at hand. This is a discussion that happens up front because it very well may affect the way you go about the transaction at hand. And one more important point here, the client is a client. They're not a licensed loan professional. They do not know what type of loan programs are out there or how loans work. That is our job. So a client could tell us that they're looking to do something, but if we don't know their goal, I guess what I'm trying to say, they may tell us they want to do something because they think that's their goal. They think that's going to accomplish their goal, but they don't know, right? We want to find out what they're really trying to do. Then we can figure out what's, you know, the best thing. They might say they want X, you know, whatever loan they'll go. I want this loan. I want this loan. Okay. Well, let's look, maybe we don't have to go with that loan. Maybe there's a better one at the end of the day. Again, they don't know what's out there. They don't know the programs. They don't know how things work. It's our job to consult them through. So you can't just, you know, Take their word for it of, Oh, here, I want to do only this and this is for the transaction right now. That's all I'm worried about. Okay, well, let's step back for a second. Let's talk about what's your goal here with this transaction. And then what's your long term goal? And let's make sure that we're on track to meet both targets. So I don't see any questions in the chat. I think we'll wrap it up. But, the big thing, just remember these stats, this is actually happening. So if you're not in it for the long, the longterm, if you're not getting clients for life, if you're kind of burning through people and just doing one deal and not following up and you know, all that kind of stuff, right? Then you're, you're missing the boat here. This is, this is the real data of what's actually happening. And, obviously when rates dip low, like they did, then you'll get a flood of them and there'll be even more. But on average, this is what's happening out there. So go out there, get the clients, consult them on the entire process. What's their long term goal? How are we going to get there? And let's walk them through all of these transactions that they're inevitably going to do with or without us. Let's make sure that we're the person that they're doing it with all of the transactions with, because we've consulted them through that whole process. If you just let them go off to whoever else is going to get them for the next transaction, but if you've already planned this with them. They're going, they're calling you to do the next trip. You already set this up. We planned, this is our plan. I'm calling you back and saying, Hey, I'm ready to move forward on the plan. I've been staying on the plan. Right. But if not, then they're just kind of up in the air and we'll go with anyone. So it's our job to make sure we lock them in for life, consult them, find out their longterm goals, and, uh, you know, just make sure to accomplish them and consult them and make a plan. And if you make a plan with them, they're not going to be going elsewhere. All right. The question here in the chat is missed. Most of this will be uploaded. Yeah, absolutely. It'll be on YouTube right now. so you can actually watch it from the beginning. So thank you everybody for tuning in. Appreciate it. Remember we're doing this every Monday now. So every Monday at 12 PM Eastern time, we do this sales training. So I appreciate everybody tuning in. We'll see you next Monday at 12 PM Eastern for the next episode of the loan officer sales training with the mortgagor.