Never Market Rates

I see it all the time and it makes me cringe! Originators and companies who think they are helping themselves by marketing and advertising mortgage rates! Here are five quick reasons why this is NOT a great idea:

  1. Rates change! Before you can complete all the legal disclosures on your marketing piece, that rate may be long gone! Even if that rate holds for the day, it has no staying power and holds you out as a salesman, not an expert concerned about the value of a quality experience for the customer!
  2. All borrowers are not the same! Loan sizes, products and programs, loan to value, and types of property all weigh into the actual effective “rate” the will be part of any deal.
  3. Credit quality is often the biggest factor of all! Since pricing can vary so much based on the credit quality of the borrower, do you advertise the “rate” for the best qualified people and tell all the others they are lacking? Why would you upset or insult a majority of your potential customers?
  4. If the strongest part of attracting your business is based on rate, you are the weakest player in your market! Price is just one part of the overall client experience. When you spend your time marketing rate, please don’t complain about being “shopped” the entire process!
  5. In a battle of rates, the best liar on the internet usually wins!

So PLEASE! Stop posting rates on social media unless that is your only value to the customer! If you are a true professional, understand value and providing a quality experience for the customer and your referral partners, then share your expertise, not your rates! NOBODY EVER GETS THE LOWEST RATES! Somebody will always work cheaper or lie better! Rely on offering great value and an exceptional experience. Market your speed, agility, and expertise. Offer information, education, and options. Build a relationship on value and quality of the customer experience, do not try and sell price!

Questions or comments: Mike@IMTcoaching.com

Published by

Mike White

Improve My Tomorrow Coaching is a company founded by Michael F. White to help mortgage professionals reach their true potential. Based on a belief that working the fundamental principles of the loan origination business combined with a solid system to leverage your day to day business into a self sustaining career! If you are looking to generate consistency in your business, you need to know and implement the fundamentals. Once you know what to do and when to do it, being a mortgage professional is fun, challenging, and profitable. Since the average loan originator in the country closes less than three loans a month, the average originator is unaware that closing seven, ten, twelve or more loans per month is often easier and less stressful than just two or three! If you are tired of the pain and punishment of not knowing where your next deal is coming from; if you spend more time being “busy” instead of “productive”; you need to look and see how we can help you get to a whole new level of business. Take some time to explore this website and read all the free information. If you find some things that cause you to rethink how you are currently doing your business, let us help you! It starts with YOU! There are two programs you can choose, a group program and private coaching. Please look at both before you make your choice.

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