Purchase loan business has been brisk in many areas, and refinances move higher every day. We have talked about the falling rate environment and the strategies to be used and many have taken advantage of these to improve loan volumes. Here are three stories from the street this week.
One originator making calls to past closed clients had things align just right. After talking a bit about the client’s situation and discussing the “Forever Home Strategy”, it became clear that while saving a couple of hundred dollars a month was attractive; this couple thought that keeping the same payment and reducing the loan term to 20 years instead of the remaining 27, or new 30 year loan.
They had a strong desire to retire in 20 to 25 years and wanted to do so in the home they loved, and with that home not having a mortgage. Reducing the term by seven years while keeping the same payment accomplished that goal and saved them more than $250,000 in loan payments!
Another originator calling closed clients who were high LTV/DTI/Marginal credit, had an interesting call. The client expressed a great deal of thanks for the originators help getting them into the home and how much it meant to them that they stood by them to get the deal done. Then they went on to explain that a few weeks after closing, the borrower’s work supervisor left to take a new job, and he got a HUGE promotion with a great deal more money. In the year or so since the closing, they managed to pay off all of their debt, and thanks to a bonus, put away a nice chunk of money into savings.
As the conversation came around to how they could improve their situation further with a better credit score and a lower rate market, the borrower asked if it might be possible for them to buy the home they really wanted but couldn’t afford the last time they were out looking. After some information gathering it was clear that they could sell their current home and buy the home of their dreams. A quick call to the Realtor® and their current home was listed and they were off to buy the house of their dreams!
The last story is a personal favorite. My loan originator was following the plan to update all of her pre-approvals that were more than a few weeks old. As she updated each client, she noted the higher purchasing power for the same payment, or the lower payment on the same amount of money. She would then email the new letter to her client and immediately call to let them know about how current market conditions had improved and that they could take advantage of better purchasing power or a smaller payment.
While making one of these calls, the client remarked that the new higher loan amount would open the door to a group of homes that before were out of their budget. The client asked the originator if she could call their Realtor® and send them that information as well; the originator did so. That weekend a house was found and an offer was accepted! After a number of failed attempts, being able to offer more money for the home they wanted made all the difference!
Doing the work, works! All of the strategies are on the website to review for our subscribers. A special refinance segment was recorded and is on the site under “Monthly Coaching – June 2019” and the speakers notes are in a PDF file under “White Papers” so you can be sure you are clear of what is possible! For those of you who aren’t subscribers, you can purchase “ACCESS” for just $59 a month directly from the website!
Questions or comments: Mike@IMTcoaching.co