The Fed has recently raised its interest rates, and if you haven’t felt the tremors already, you will soon for sure. The rates are slowly soaring, and the refinance market is as volatile as it can get. So, if you’re looking to survive the mortgage industry, the time to act is now!
Here, we will discuss several techniques to survive and thrive in the down mortgage market. Let’s begin!
Give Yourself a Raise
One of the first things to do is look for a raise. Look out for a mortgage company with a high commission structure or pays a salary plus commission. Many net branch companies do offer high commissions. Some of the companies that offer high commissions include 1st Metropolitan, Allied Mortgage, and Carteret Mortgage.
The commissions paid by the mortgage companies mentioned are above or around 70 percent. So, even if you land on only a few loans per month, the takeout would still be substantial.
Stop Loan Fallout
It begins by reviewing the current mortgage loan procedures and noticing at what stage the loans are falling off from the conversion cycle. Is it during the pre-qualification phase? Does the mortgage fall out during processing? Is it at the closing phase?
Scrutinize your efforts around the phases where the subprime loans are falling out. Define a process for qualifying, processing, and closing loans to stay organized. Write down where you’re lacking and make efforts to fill in the gaps.
Remember that even if you save one mortgage loan from dying each month, it’s an additional $2,000 to $3,000 or more per month. So, focus on stopping loan fallout!
Focus On Purchase Money Loans
The refinance market isn’t at its best these days unless you’re going after debt consolidation loans or cash-outs and sub-prime loans. The interest rates aren’t viable for prospective customers, and getting a mortgage loan at 5 percent on a 30-year fixed mortgage loan is way over.
There’s no point wasting time and reworking the deal repeatedly without any visible gains in insight. If the returns aren’t substantial, don’t put in the effort!
Mastery in Niche Loans
Find out more about the options available in the mortgage market, like LIBOR Index and Option ARM Loans. These 4-payment mortgage loans are gaining tremendous popularity in the mortgage market these days. Some niche loans you may want to consider in these down mortgage markets are:
∙ Interest-Only
∙ Regular ARM
∙ State Income
∙ Option ARM
∙ No-Doc Loan
∙ Immigrant-Visa
∙ Reverse Mortgage
∙ First Time Home Buyers Programs
These loans are for a specific group of buyers, and the interest rates are not a deal-breaker in these cases. Even if you can become an ‘expert’ in a couple of these mortgage specialties, you would see tons of referrals flowing in each month.
Try A Different Lead Source
Where have you been getting all the leads from? What is their conversion ratio? How many of the generated leads resulted in closed mortgage loans? If the leads from the current source aren’t many or aren’t converting well, it’s time to look for another lead source.
Some other lead sources you can try include attending open houses, choosing other websites, live-transfer calls, and more. Get innovative and look for lead sources that generate leads and have a good conversion ratio!
HELOCs & Second Mortgage
One of the things you need to focus on during the down mortgage market is not to forget about second mortgages or home equity line of credit or HELOCs. You will always have some customers who are looking for some extra line of credit, and quickly so!
These loans are simple, and closing them is quick. Moreover, they are quick loans that would swiftly put some cash into your pocket.
It would be good to check with your mortgage company if they provide second mortgage loans. Don’t take this option lightly because, during the down mortgage market, a second mortgage loan can go a long way.
Change Your Sales Strategy
If you’re not getting sales or the market is tight, it’s time to refocus on your sales approach and strategy. Revisit your sales approach, the things you say to your customers, and if you come across as too ‘salesy’ or lack confidence.
Do you fumble while talking to a prospective customer? If the answer is yes, it’s a good idea to write your sales objectives and other important points down. It would help you keep focused during the meeting and come up with better responses that convert.
Look out for objects that the customers may have and jot down objective responses to them. As trivial as it may seem, it does contribute to your success and should be a part of your mortgage marketing plan. In other words, if you’re looking to sell, be confident about what to say!
Get Referral Sales
It might seem redundant, but it’s important to keep in touch with your customers. One of the things you can do is make a list of your customers, give them a call once in a while, ask them how things are going with their loan, and if there’s anyone else who might need help with getting a mortgage loan.
Don’t worry if it’s been over a year that you haven’t called. A simple call won’t do anyone harm! Getting referral sales is commonplace in the mortgage market, and it helps you stay afloat during the down mortgage market.
Get Into the Other Side of the Mortgage Industry
It’s important to know your true calling, and if selling isn’t your cup of tea, you might want to switch to processing or underwriting. Many brokers, agents, and loan officers have switched to processing and underwriting and achieved massive success at that. This side of the mortgage market offers a stable salary income, excluding the volatility of the down mortgage market.
Do You Really Want To Do This?
It’s important to ask this yourself because unless you love this industry and all the baggage it brings along, it would be difficult to make a long-term career out of it.
The mortgage industry and market are more than just money; it’s about helping people. Like in any other field, you need to be passionate about what you do to overcome adversities.
Be Honest, Build Trust
The down mortgage market may get to you, and you might be tempted to go to any lengths to close that mortgage loan. But it’s important, to be honest, and transparent with your clients. Clear all the facts you can above the sub-prime, allied mortgage, or reverse mortgage loan they’ve applied for.
Being honest and truthful goes a long way in building trust and establishing yourself as an authority in the market.
Better Relationships, Better Revenue
In the mortgage market, it’s important to be great at building relationships, whether it’s a new prospect, past client, a new lead, or someone from your referral network.
When you’re great at networking and building relationships, it becomes a passive way of generating leads that would help you tremendously during down mortgage marketing. Show your customers and prospects you care by reaching out on special days – it works!
Takeaway
It’s important to get started with following these techniques right away. Stop procrastinating, and take one step at a time. Don’t rush it but hold yourself accountable for making progress every day, no matter how minuscule the progress may seem. Remember, quitters never win.
So, no matter how challenging the down mortgage market may seem today, things will become better if you follow the tips above and stick to them. If you’re disciplined and committed, there’s no way you won’t see any progress soon.
If you’re struggling with making sales and closing loans or need assistance building a solid marketing and sales strategy, schedule a strategy call with us today and see your business turn around in no time!
