A Realtor's blog I found had a post titled "8 questions your lender should be able to answer about mortgage rates" and then it went on to give the eight questions along with the answers. It was written by a loan officer. The questions are things that any good loan officer should know and the answers were solid. As I read the post, in part to make sure the author was correct in what he was writing and in part to make sure I wasn't missing anything, I thought about how many loan officers there are who don't know the answers to all eight questions; even worse are the ones who also lack knowledge regarding the loan process, key underwriting guidelines, the new GFE, as well as being able to explain loan options and consult with the client as to which option is best.
Thanks to Mark Madsen for the blog post titled 8 questions your lender should be able to answer about mortgage rates
The mortgage industry is dynamic; our education should be dynamic as well. While the frequency of changes to programs and guidelines has slowed, we still have changes on a regular basis that can negatively impact a borrower if the loan officer isn't on top of the situation. For instance, the up-front mortgage insurance premium just increased from 1.75% to 2.25% on April 5th and every loan officer who could had his processor pull case numbers on clients with properties in contract before that date to get the more favorable rate. There is talk about more changes to come and we have a fiduciary responsibility to our borrowers to know how these changes can affect them so that we can provide them with the best opportunities available.
Proactive client education vs. reactive education - No Realtor or loan officer can anticipate every twist, turn, questions, or scenario from every client or every transaction, but just like in chess, we need to look as many moves ahead as possible. While we may not know for certain what moves our opponent will make, we should have an educated guess. To this end, I believe we should be able to provide free reports to lay the groundwork for our clients education regarding the process he or she is undertaking. This report should set expectations and answer many of the questions that would have otherwise come up at a less opportune time in the process. By explaining the process as you go and keeping the client in the know, you build credibility and answer questions before they need to be asked. Taking control of the situation by telling the client how it is, even if the news isn't great, will help the client have confidence that you are on his side and able to overcome challenges. Being there for the client the way you would be there for a friend will earn more referrals than doing the minimum to earn your commission.
8 questions your lender should be able to answer about mortgage rates?...Clients don't always know what questions to ask but they do know their situation and what they want and need. We need to ask the right questions to find out those things while providing knowledge and expertise far beyond the 8 things we as loan officers should know about interest rates. The Army got it right when they coined the phrase "Be all you can be" as did Nike with "Just do it." I believe that Realtors, loan officers, title agents and everyone else in our industry should strive to be all we can be for our clients and each other. I'm certainly not perfect but I love each new unique situation because it gives me one more nugget of knowledge. "Be all you can be," "just do it." Make it a great day.
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