When people have the approval in their possession, the approval for a home loan, common sense and practicality can often slip right out the window. Some people hold their collective breath waiting for word, others wonder what they will be approved for, and still others wonder about the rates, points, and other factors related to mortgages. Even though someone has been approved for a loan, it doesn't always mean that they are ready to buy a home.
Why you should be looking out for your client's best interest
We are in the business of making money. Selling homes, finding loans, and all of the other aspects that go along with home purchasing is what we do. It doesn't make fiscal economic sense in the short-term to try and make sure that these clients are actually ready to buy a home. After all, these are adults who are fully responsible for their own behaviors and actions, right?
Right. But we are custodians of the industry. We are the gatekeepers, the ones that are hired, and paid, to look out for the little person, the one who can't always protect themselves against outside forces or worse -against their own destructive behavior.
All it takes is a few simple questions
If you have spent any amount of time in the real estate business, you have undoubtedly talked with or heard about at least one -and probably quite a few more than one- agents who pushed for the sale even when their clients weren't completely thrilled, in love with, or ready to buy. Real estate agents can sometimes forget what they are hired to do, which is help their clients find the right home at the right price without the salesmanship pitches and pushing.
Loan officers and mortgage lenders and brokers are down the line from the agents. These are the people responsible to making sure that the entire deal works out for the client and to get them the best deal possible. But it doesn't have to be like that. All it takes is a few questions on any one of these individual's part to help the client ensure that they are getting the home that they want, at the price they want, and most importantly that they are ready for this purchase.
Buying a home is not like buying a car
While buying a car is a major purchase for many families, especially if they are looking at the high end SUVs or luxury automobiles, it shares some of the same traits and characteristics of buying a home, but on a much smaller scale. If you have ever purchased a car -maybe you have to trek back in your memories all the way back to your youth for this one- you have certainly met with some 'pushy', driven and motivated salesman or saleswomen.
The deal sounds almost too good to be true and if the potential buyer is pressed and told that they have to act now, then they might jump on the opportunity before really letting the decision sink in. Buying a home for some can be a very similar situation. They may find a home that they like, but not necessarily love, and their family or friends or agent could be pressuring them to close the deal now because it won't last. They may have been persuaded that this is the best house or location or deal that they're going to get and are simply going with the flow, so to speak.
When they come into your office, talk to you on the phone, or through email, asking a simple question or two can open up a dialogue. People who are troubled with their decision will latch onto any opportunity to speak with you and, odds favoring them moving forward with their decision to buy now, they will feel better about the decision in the end.
What's in it for you?
You may ask what's in it for you and the answer is simple, and intricate at the same time. You get a sense of peace and satisfaction knowing you're looking out for your clients and they will feel that someone, at least, through the entire process cared about their welfare.
If you think they won't tell their family and friends about you and your compassion, think again. Word of mouth is some of the most powerful marketing techniques we have at our disposal and any time we can create positive buzz, we should take it.
David Reinholtz is a professional Mortgage expert in Real Estate Industry. David is also a sales and marketing expert and trains professionals in every career field. David has personally trained tens of thousands of loan officers, mortgage brokers, real estate agents and individuals through The Close More University Seminar Series, LoanOfficerSchool.com Classes, Correspondence and On Line Learning, and countless private engagements and training events throughout the country.
David is the Founder and CEO of LoanOfficerSchool.com, an approved education provider for The Conference of State Bank Supervisors and The National Mortgage Licensing Systems' (NMLS) required pre-licensing education and continuing education.