Part III: If rates go up this year, should I abandon any plans to originate refinances? It just seems like purchases will dominate the markets.
--Jake from New York
Last week we discussed meeting the agent who sold a house to a client you are refinancing. We also pointed out, that sometimes a refinance client was referred to you originally by the real estate agent. Thus, this brings up another important synergy opportunity. Not only can refinances help you meet real estate agents, but real estate agents can refer refinances as well. Agents should be keeping in touch with their clients, especially with regard to their property values.
When their previous client's house is increasing in value, perhaps they should refinance to remove mortgage insurance or fund renovations. Do not assume that the agent is still working with the loan officer who did that purchase originally. If the agent is now referring you purchases, you need to make them aware that you can help their previous clients. Keep in mind that agents are only one part of the sphere of a transaction. There are many other actors as well. For example, if you are referring a refinance to a settlement company, are they introducing you to real estate agents? A diversified business model will bring you maximum referral opportunities and diversified means both refinances and purchases in every market. But you need to take advantage of these opportunities.
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 protected].