What kind of value do you put on experience? I, like many of you, have leads call me and the first thing they ask about is the interest rate. This is one of the biggest purchases of their life and all they are concerned with is what the rate is at that point in time (9 times out of 10 this isn't what it's going to be when they close because right now they're just shopping, closing can be months away).
Do they ask how many loans you've closed? not usually
Do they ask how many transactions you close on time? nope
Do they ask for references from past clients? no, never had that one
Do they ask about what percentage of your loans close? no
They are shopping strictly by rate which is crazy. It's one part of the equation but if they are promised a rate that's 1% lower than the rest of the competition, what difference does it make if the loan can't close because of lack of experience on the part of the loan originator. Here are just a few things that can go wrong and either cause a delay in closing or kill the deal.
- They are in the wrong program for their credit profile.
- The originator missed the reserve requirements for the program and the customer doesn't have them and now the deal can't close.
- The loan originator didn't know with private MI the customer must have 3% of their own funds into the transaction.
- The loan originator didn't know how to read the tax returns and miscalculated income
- The loan originator didnt' know the customer had to liquidate the mutual funds to qualify
- The loan originator didn't know what kind of visa was eligible for the program
These are just a few of the reasons your clients should always be referred to and work with a seasoned loan originator. Although I agree the interest rate is a huge concideration, it shouldn't be the one driving the transaction
