Imagine that you aren’t feeling well. You go to a Doctor and you find out that this Doctor has not yet completed medical school, so he technically is NOT a Doctor at all.
What if you were accused of a terrible crime and you were innocent. Would you go to an attorney who had not yet passed the bar exam.
I could continue on and on with numerous professions but I am sure you get the point right?
WHAT DOES THIS HAVE TO DO WITH ORIGINATING LOANS?
Honestly, this has everything to do with originating loans and closing loans. We all seemed to be so caught up in the changes going on in our industry that we continue to drift away from the basics and fundamentals.
Yes, we need to market ourselves and bring in more business. But the hard truth is that we also must be good at closing loans. Actually, let me rephrase that. YOU MUST be great at closing loans that others may not know because they are not up to date on their own guidelines.
STOP FOR A SECOND AND BE HONEST WITH YOURSELF!
When was the last time you pulled out the VA- FHA- Conv – USDA guidelines and actually read them? I realize how painful it can be to do this but the truth is that is what will truly give you the edge in your marketplace.
Knowing the guidelines gives you an edge over your competition.
Knowing your guidelines allows your loans to go thru processing and approval smoothly.
Knowing your guidelines makes your clients and agents see you as an expert.
Knowing your guidelines produces happier internal staff.
BUT MAYBE MOST IMPORTANTLY – KNOWING YOUR GUIDELINES MAKES YOU MONEY!
Just recently I had a client come to me who had been to several other lenders and was told they were NOT eligible for a mortgage loan. They had a bankruptcy and were told they had to wait 2 years from the date of discharge.
WHAT DO YOU THINK? Was that lender correct?
Now before I go any further, I do of course realize that many companies have overlays and other internal guidelines they follow. But the truth is that FHA says you must wait 2 years from a Chapter 7 bankruptcy discharge unless you can prove there were extenuating circumstances beyond the buyers control and they have re-established good credit. If you can prove extenuating circumstances and they have re-established good credit it may be considered 12 months after the discharge.
Did you know that? Really?
I was able to get this buyer approved and into a home and in the process earn the respect of a new Realtor who is now referring me new business. She has now told several other agents in her office that I should be their go -to originator. The buyer is so overjoyed that she has also referred a co-worker and cousin to me. Neither her co-worker or cousin have any credit issues, but they are working with me because of the strong referral.
YOUR TO DO LIST:
Block 1 hour a day for the next 5 days
Grab the FHA /VA/CONV/USDA guidelines and spend 1 hour a day on each
Grab your company’s overlay’s and memorize them.
Grab your company’s product mix and spend 2-4 hours going thru them
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