My agents keep telling me that they are referring me, but 50% of the time, I don't hear from the prospects they are referring. I know my performance this year would be much better if I could increase that percentage. Any ideas on how to do that?
–Ivy from Missouri
This is a very important question, especially because today these prospects are being inundated with mortgage inquiries online and over the airwaves. Today, virtually no one undergoes a home search without surfing for homes online. And as soon as they do that, they will be hit with ads for great rates on home loans. How do you combat this elevated form of competition?
First, you need to find out how and when the real estate agent is referring you. With regard to “when,” the timing of the referral is very, very important. There is a wide gap between these two scenarios:
- Before I show you homes, you will need to meet with my lender first. That way you can get pre-approved and sellers will take your offers more seriously.
- Now that you have signed a sales contract, you can now meet with lender, make application and lock in a rate.
You can easily see the difference between these two extremes. And I don't have to tell you which objective you should be aiming for. With regard to how they are referring you – Are they giving out three names? Are they handing out business card(s)? Or are they taking it a step further by trying to direct the client? Again, you can see the difference in these approaches. What you need to do is guide them to the approach that will give you the best results. We will address that next week.
Dave Hershman has been the leading author and a top speaker for the industry for decades with six books authored and hundreds of articles published. His website is www.originationpro.com. If you have a reaction to this commentary or another question you would like answered in this column? Email Dave directly at email@example.com.
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Do you have these referral sources on your list?