ARE BUYERS REALLY LIARS ???

ARE BUYERS REALLY LIARS OR IS IT YOU?
One of the first things I heard years ago when I started as a Realtor was “Brian, you’ll quickly find that most buyers are liars” That struck me as being very strange but a year later when I started as a loan officer I heard the exact same saying.

But what I have come to find out is that it really has much more to do with the person asking the questions and the actual questions that are being asked. So let’s dive in and break down each of the items we need to know and the right way and wrong way to ask the questions.

There is a lot of psychology that must be taken into consideration when asking someone you have just met all of the personal questions that are part of our job.

Just like the computer saying- Garbage in and Garbage out. The questions we ask matter. In fact ,they will either build rapport or completely alienate the buyer and have them running to a different lender.

BEFORE WE EVEN DISCUSS THE QUESTIONS WE NEED TO UNDERSTAND POSITIONING.

Consider first that we are all viewed as Heads of Lettuce which means that we are a commodity. The consumer only knows to judge us on price, not expertise. So a loan officer with a low rate that has been in the business 3 months is often able to get a deal away from a seasoned pro with 25 years of experience that has a higher rate.
There is a way to fix this by becoming an expert that I show you in the Boomerang Expert system at http://boomerangexpert.com/nowv2/

Your phone rings and on the other end is a borrower who wants to get pre-approved.The borrower doesn’t know you and you don’t them. The WAY they were referred to you matters a great deal in this situation.
If a Realtor- Friend- Co Worker- or other professional referred them this conversation will progress much better than if they just saw your ad or face on Zillow.

YOU MUST POSITION YOURSELF AS AN EXPERT – PERIOD !

When you go to a doctor they speak with you and then examine you. They then make a diagnosis and provide a remedy or prescription. You don’t question it if you are sick you just do it. Granted you may want a second opinion but you aren’t price shopping you just want confirmation. That is exactly how you must be seen to be successful or you will spend your day being a rate quoting machine or even worse, doing nothing but hoping the phone rings. Now back to the important questions we must ask and deciding if buyers are really liars?

Think about our job for a second and how truly awkward it can be.

You start the conversation and then ask.
“ How much do you make?”
“ How much money do you have in the bank?”
“How’s Your Credit?”
Really stop and think about that for a minute. You have now asked a total stranger all of these personal questions. Heck, you might not even ask a person you are dating or a family member these personal questions right?

START WITH QUESTIONS NOT RELATED TO THEIR PERSONAL FINANCES.
I generally start by asking their name and contact information. Then we discuss where they are in the process and finally how they were referred to me. To be perfectly transparent , I generally prefer and offer to meet them in person. Nothing is better at building rapport then meeting a person face to face so you can get to know them and have them feel comfortable with you .
The added benefit of course is that if you have prepared them properly they will be providing you with their bank statements, w2’s and paystubs. When someone has gone to the trouble of providing you with their information you have immediately reduced the chances that they will shop rates when they finally purchase a home.

Lastly I always start by asking them questions about what their goals are. How long do they anticipate being in the home? Have they seen any homes they liked?

NOW TO THE QUESTION S AND IF BUYERS ARE REALLY LIARS?

Let’s start with the first question which is about income.

“HOW MUCH DO YOU EARN?”

This may sound basic to many of you reading this but this is actually a question I hear being asked. The buyer on the other end says I earn 80,000 and then you later find out that it is made up of 50,000 from salary and 30,000 from overtime which he only started working last year.

IS THIS BUYER LYING?

We know that overtime, bonuses, and commission income must be averaged over 2 years. But your buyer doesn’t know that and so they are simply answering the question you asked them.
Instead of asking the How Much Do You Earn question try this.
What Do You Do For A Living?
Are You Paid Hourly or Salary?
Do you work overtime or receive bonuses?
Of course if they are self employed or commissioned only employees we will need to see their tax returns and use their net income not their gross.

NOW LET’S MOVE ON THE QUESTION ABOUT ASSETS.
I hear loan officers asking buyers “How much money do you want to use?” or “How much money do have to work with?” The problem with this question is that the buyer imagines your hand going into their wallet or purse and they immediately tense up.
Think about the last time you asked this question and the awkward silence for a few seconds you heard on the other line.
Instead try asking the same question this way.” How much do want to invest in this transaction? You will need some funds for down payment and closing costs and this will help me suggest the proper program options for you .”
Depending on their answer you may also need to suggest first time buyer grants and how lender and seller credits work. You can also explain gifts from relatives as well as withdrawls or loans from their retirement accounts, which are sources they may not have thought of.

FINALLY – LET’S DISCUSS CREDIT.

You should never ask the buyer “How’s Your Credit?” There’s nothing worse than working with a client for months only to find out later when you run their report that they have serious issues.

Most buyers are very apprehensive about having their credit run because they fear it may hurt their credit scores. It’s important to let them know that although pulling credit is a hard pull , it should not seriously affect their credit. You may need to also let them know that all mortgage pulls within 30 days count as 1 pull and again should not adversely affect their scores.

I try to explain it this way. “ I would like your permission to pull your credit report. It’s important for us to know you credit scores and it’s a good idea for you to make sure that the information on your credit report is accurate. We often find items on clients reports that they were not aware of.”
Once you have said this, it CRITICAL that you immediately ask them for their date of birth , address, and social security number.

It’s also important to ask for these items in this exact order since their social security number is the one piece of information people try to protect the most. Asking for it last , after they have given you all of the other information makes it easier psychologically for them to provide it.

One last important item on their credit report.

Many times your client will tell you that they already know their credit scores because they are signed up for credit karma or get it on their credit card statements.
It’s important for you to explain to them that there are different scoring models for credit cards, installment loans, and of course mortgage financing.

While we are on the topic of debts you should of course also ask them if they are paying or receiving alimony or child support.

MAKE SURE YOU END YOUR CONVERSATION CORRECTLY.
Now that you have all of their information you need to suggest the various programs that would be best for them. Explain the differences and why you are recommending the programs that is best for them.

As you are wrapping up you should also encourage them to send you their documentation of income and assets so that you can keep them on file for when they find the home they want to put an offer on. You should also explain to the difference between pre- qualifications and pre-approvals. Let them know that you would be happy to provide them with a pre-approval letter to accompany their contract once you have received their supporting documents.

Aside from needing to verify what they have told you for income and assets, collecting this information stacks the odds in your favor of getting their loan when they are ready to apply since most people would prefer not to have to gather all the information and send them to various lenders.

The bottom line is that buyers are generally NOT LIARS, but there are many lenders that are simply not asking the right questions. Print out this article and keep these questions handy for your next phone call or meeting.

Dedicated To Increasing Your Production,
Brian Sacks
www.TopOriginatorSecrets.com

Brian Sacks is a nationally-renowned mortgage expert who has career closing of more than 5,924 transactions for more than $1 billion. He has trained, consulted and coached, tens of thousands of loan officers and company owners over the past 31 years on how to close more loans, make more money, and still have a life. Brian is the host of “Top Originator Secrets,” which can be seen weekly on Mortgage News Network and on his blog. You can get more information and grab your free report on “How to Get Agents Chasing You” at TopOriginatorSecrets.com

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WHY THE ZILLOW REP HUNG UP ON ME !

WHY THE ZILLOW SALES PERSON HUNG UP ON ME

Do you hate clients who call you and waste your time ? Of course you do, we all do. But you have to stop and think about who you have invited to call you and the process they go thru before you actually speak with them.

Yesterday I got a call from Zillow about a new program they are offering loan officers around the country. To their credit this was a well thought out process. The program takes buyers from the website thru a process where they are asked a series of questions and then turned over to a loan officer.

YOU MUST THEN CALL THEM BACK IMMEDIATELY.

Now stop and think about that for a minute- I’ll wait.
What position are you in when you MUST CALL THEM BACK immediately? Do you go to a Doctor or a lawyer? Do you have a dentist ? Do you hava an accountant?
Do they call you back immediately?

THE DIFFERENCE BETWEEN A HEAD OF LETTUCE AND AN EXPERT.
The Zillow rep explained this process to me and I politely declined. She seemed totally stunned as if someone had just kicked her in the stomach. She went on to explain the entire 15 steps in the process a buyer now must go thru and all of the information they must provide.
At this point , I could not get a word in anyway so I let her continue trying to sell me. After another 2 attempts at closing me ( have to give her credit for trying) and another 10 minutes of explaining I once again said so.

I explained all of our frustrations to her.
1. We hate rate shoppers.
2. We hate working with buyers who we spend a lot of time with and then don’t qualify.
3. We hate being seen as a head of lettuce.
4. We hate having our down time or family time interrupted with only a 10% chance of actually getting a client.

FINALLY- I TOLD HER HOW I FELT AND THEN SHE LITERALLY HUNG UP ON ME.

Since I knew she would never sell me I finally told her, “Look, I’ll tell you what we can do. If you want to pay me $100.00 per lead I will take them with a max of 5 per day?
Her response was priceless and just one word “HUH?”
So I told her again that I would be willing to take up to 5 leads per day that went thru her 15 step process but that she would need to deposit 100.00 for each lead into my account before I called them back.
The response on the other end of the phone was priceless. There was total silence for about 30 seconds and then all I heard was “CLICK”!

HOW BUYERS GET TO YOU IS VERY VERY IMPORTANT.

How a buyer a gets to you is crucial to your success. The truth is that you are either chasing business or using the techniques I have perfected and share to get business chasing you. When you are chasing the business you are begging and showing little value. You appear just like a head of lettuce in a supermarket or a razor blade in a convenience store.

When you are instead getting business chasing you it’s because you are being seen as an expert and authority. Buyers are much less rate sensitive and you hold a much higher value in their eyes.

WHICH WOULD YOU RATHER BE?

Yes I know that is a silly question but stop and think about the ways you currently try to generate new business. Are you chasing or attracting?
I WANT BUYERS SOLD ON USING ME BEFORE THEY EVEN MEET ME AND I AM SURE YOU DO TOO.
If you don’t like the buyers or referral partners you work with —- IT IS YOUR FAULT.

THERE ARE 3 CRITICAL PIECES TO THIS PUZZLE:
1. Get to the buyers first so your income is in YOUR control.
So here’s a formula-
1.Target the best people you want to work with. So for example if you are in an area with average sales prices of 250,000 you want buyers renting for 1500-2000 a month.
WHY?
You know they are renting and you know that they can afford the payments. You know a mortgage might be lower than their rent.
2.Let them hear your sales message – why they should work with you and educate them thru an automated process.
3.Encourage them to call you for a free consultation.

This is the formula I have laid out and provided all the steps for in my www.RentersIntoLoans.com system.

Now instead of having to drop everything to speak to borrowers you just paid 43 dollars each for you can put them thru a process.
Our process costs 50 cents per lead and they are already sold on using you BEFORE THEY EVEN CALL.

STEP 2-BECOME THE EXPERT IN A NICHE
.
You can become an instant celebrity using this simple formula.
Pick a Niche
Become THE Expert
Let Everyone Know About Your Expertise.
The biggest niche in our market currently are the 7.3 million Boomerang Buyers who are now eligible to buy a home. I have put together a comprehensive training on this topic at
http://boomerangexpert.com/nowv2/

STEP 3- UNDERSTAND AND LEARN ALL YOU CAN ABOUT PERSUASION AND MANIPULATION.

I honestly have never seen anyone cover this for our industry specifically, but the bottom line is that you MUST learn persuasion and manipulation techniques. Now I know what you are thinking. These are bad words right?
Well nothing could be further from the truth. Each and every day you are either being persuaded and manipulated or you are manipulating and persuading others.
Truthfully that is what we all do for a living when you take a minute to stop and think about it.
You are trying to generate new business.
You are trying to get referrals.
You are pre-approving buyers and hoping they use you.
You are working on files and trying to get your processor to do their jobs.
You are convincing underwriters to approve your loans.
You are convincing closing agents to get their jobs done on time and accurately.
None of this takes into account your personal live and all of the persuasion and manipulation that goes on there each and every day.
Since I believe this DOES give LO’s an UNFAIR EDGE I have put my best tactics and samples
here http://lounfairedge.com/1-2/
Just reading the letter itself is worthwhile

THE BOTTOM LINE- YOU ARE EITHER BEING CHASED OR YOU ARE DOING THE CHASING.
YOU MUST DECIDE WHICH BUSINESS MODEL WORKS BEST FOR YOU?

Dedicated To Increasing Your Production,
Brian Sacks
www.TopOriginatorSecrets.com

Brian Sacks is a nationally-renowned mortgage expert who has career closing of more than 5,924 transactions for more than $1 billion. He has trained, consulted and coached, tens of thousands of loan officers and company owners over the past 31 years on how to close more loans, make more money, and still have a life. Brian is the host of “Top Originator Secrets,” which can be seen weekly on Mortgage News Network and on his blog. You can get more information and grab your free report on “How to Get Agents Chasing You” at TopOriginatorSecrets.com

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Are All Loan Officers Liars and Cheats? Important Marketing Strategy

NO ONE BELIEVES YOU BUT HERE’S WHAT THEY DO BELIEVE

When I first started in the mortgage business way back in the 80’s the advice I got was to “Get out there and get your name out.” I would bet you probably have heard the exact same advice haven’t you?
There are many ways to “get your name out there” but I would like to just focus on one of them right now which is using media.

MEDIA INCLUDES RADIO –TV- PRINT AND SOCIAL MEDIA.
There are numerous avenues most of which were not available when I was starting out. Heck – fax machines, cell phones and even the internet had not yet been invented. Certainly there was no Facebook, Linkedin or Instagram.

THE MEDIA DOESN’T REALLY MATTER – IT’S THE CONTENT THAT DOES.

First, you must understand that Facebook, Linked in , Magazines, Radio, and TV are all media. You should never think of the social media sites or Google as anything other than a media source.
I laugh when I hear people saying the only way to get business is Facebook, or Google or any type of media.

THAT IS VERY VERY DANGEROUS THINKING.

If you are dependent on any one media and it goes away or suddenly changes it’s rules you are doomed. Think about all of the changes that have already taken place on Linked in – Google and Facebook.
Many have had their ads banned or blocked while others have been forced to pay increasing fees.
You should never ever rely on only 1 way to market yourself. Think about all those who years ago were cold calling and doing blast faxes. Both now against the law.

BUT IT’S YOUR MESSAGE THAT WE NEED TO FOCUS ON.
Yesterday I opened up a local magazine and saw 4 different ads from loan officers in my area. They were large full page ads which are very expensive.
One proclaimed the loan officer to be the “LOCAL LOYAL LENDER”. The other proclaimed that “No One Has Closed More Loans in ( zip code) THAN Him.”
The others made no proclamations and were only oversized business cards with graphics of homes and people.

WHAT DID MY AD SAY- AND WHY?
First let’s start with the why.
PEOPLE DO NOT BELIEVE ANYTHING YOU SAY ABOUT YOURSELF BUT THEY DO BELIEVE WHAT OTHERS LIKE THEM SAY ABOUT YOU !
I would strongly encourage you to re-read that sentence. Write it down. Burn it into your memory for the future.
I am sure it’s not a news flash that the general public does not trust us. They have seen movies like the Big Short and heard all of the horror stories about originators ripping off consumers.
Many either suffered thru the crash or had friends or family who lost their homes or were forced into bankruptcy.

A RECENT STUDY I READ SHOWED THAT WE ARE TRUSTED LESS THAN USED CAR SALES PEOPLE , ATTORNEYS, AND REALTORS.
So us shouting about how great we are will always unfortunately fall on deaf ears. If you are using ads that proclaim your greatness you no longer have to wonder why your ads are not producing results.

For that matter, unless you are a multi millionaire, you should be tracking your ads to make sure they are working. It always amazes me that people advertise but have no idea where there business and calls are actually coming from.

At a minimum use a service like call fire and put a different tracking phone number on each ad so at least you will know what is working and what is not. Why spend money on ads that are not producing results?

WHAT DOES WORK?
The ad I have in this publication is called an advertorial. It looks just like an article and so it draws the reader in to read it. Yes, I have still paid for an ad.
Each article starts with a question , almost like a Dear Brian article. It’s modeled after a Dear Abby column and it has a common question and my answer below it.
Under that is what is called a resource box with 3 sentences about me and how they get down load a FREE REPORT. Of course, it also lists my phone number and e-mail address.

LET’S GET BACK TO THE SECOND POINT.
As I mentioned in the beginning of this article. No One Believes Anything We Say About Ourselves, But They Do Believe What Others Like Them Say About You.
You want every marketing piece you create and ad to have a testimonial about you in them.
But you don’t want it to say you did a good job or were nice to deal with. You need concrete evidence that answers your buyers concerns and objections.

HERE IS AN EXCERSIE FOR YOU TO COMPLETE.

Take out a sheet of paper. Draw a column down the middle. Now on the left side write out what you believe to be your buyers concerns and objections.

Let me give you a few examples.
-Concerned they will not close on time.
– Concerned that they are getting a good rate.
– Concerned about fees they are paying.
-Concerned that you truly can help them get to closing.
– Concerned that you will guide them thru the process.
– Concerned that you will be available for questions.
– Concerned about income issues.
-Concerned about credit issues. THIS IS A BIG ONE FOR BOOMERANG BUYERS.
– Concerned about having enough cash for down payment and settlement.

THE KEY TO YOUR TESTIMONIALS.
As you can see the key to your testimonials is addressing all of your buyers fears. The best way to do that is to have your prospects “see what others like them are saying about you” instead of what you say about yourself.

There are a few other important components to getting testimonials to be believed and acted on. In fact, here’s a little secret. I don’t ever call these testimonials but instead call them Client Success Stories
1.Try to always include a photo.
2.Try to always include the person’s name and city/state.
3.Try to have them state what their situation was before meeting you – what their fears were and what the positive outcome was.
4.Best to actually have them tell it as a story.

Now go ahead and make sure you are getting your client success stories out there and making your marketing trackable and accountable.

Brian Sacks is a nationally-renowned mortgage expert who has career closing of more than 5,924 transactions for more than $1 billion. He has trained, consulted and coached, tens of thousands of loan officers and company owners over the past 31 years on how to close more loans, make more money, and still have a life. Brian is the host of “Top Originator Secrets,” which can be seen weekly on Mortgage News Network and on his blog.

Have you ever wanted an UNFAIR EDGE over other loan officers? Check out Brians LO UNFAIR EDGE PROGRAM where he literally shows you how to dominate any market quickly with the little known persuasion tactics only Brian can share.
http://lounfairedge.com/1-2/

EVER WONDER HOW TO TURN RENTERS INTO NEW DEALS THAT YOU CAN GIVE TO AGENTS???
Check out the proven system at www.RentersIntoLoans.com

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