The need for mortgage brokers to separate themselves from
the competition has never been greater. This is especially true when you
consider the reduction in lending sources, the decrease in product offerings
and the shrinking universe of qualified borrowers.
The question, then, is: How does a mortgage broker establish
differentiation in today’s market? Here are five primary ways.
1. Integrity: With all the recent problems in the mortgage
sector that have received media attention, the general public has lost trust in
mortgage professionals. Trust is something that can be earned loan by loan,
person by person. By being honest in every step of the transaction, from
initiation to close, you can regain your borrowers’ trust. This includes having
marketing that portrays your products’ attributes, indicating borrowers’
qualification levels and providing complete disclosure.
2. Value: This is defined by one characteristic -- the benefits
you provide to the borrower. Most mortgage originators focus on price,
products, programs and payments -- not on benefits. To differentiate yourself,
look at every possible benefit you can create for your borrowers. This goes
beyond payment and includes:
- Providing different cash options when borrowers qualify.
These should meet their short- and long-term needs and goals.
- Offering products with different term options from the
standard 30-year term to help borrowers achieve debt freedom sooner and to meet
their retirement goals.
- Creating different ways of configuring the loan to provide
the greatest overall tax and savings benefits available. The more debt you and
your lender can help borrowers pay off, and the more cash you can provide for
investment, the more tax benefits your borrowers will see.
3. Relationship: Most originators are transactional, not
relational, in their approach to mortgage applications. Many spend less than 20
minutes with borrowers on the initial application, gathering just enough
information to qualify them and provide a loan program. They don’t get to know
borrowers’ goals, desires and personal interests. To differentiate yourself,
you must get to know your customers and establish a true relationship with
them. Take more time, learn more about their desires and goals, and build a
level of trust and loyalty that separates you from the pack. Ask borrowers
about simple things, such as their financial goals, their family, their
retirement plans, their educational background and college needs, their
careers, and their future plans for homeownership.
4. Maximization: The more you maximize loan benefits for
borrowers, the more the loan you provide will be different from what your
competition might offer. The reason brokers get shopped is that they tend to
offer the same loans as everyone else. Maximizing benefits is a surefire way to
set yourself apart from others.
5. Service and attitude: If you focus on serving your
borrowers’ needs, you’ll move through transactions faster, the loan process
will be more painless and your attitude will be more positive. Remember:
Actions speak louder than words. No matter how good you claim to be, the true
differentiator ultimately comes in how you act.
Top producers know that their key to success is being
different from everyone else in every way possible. To succeed, you must give
your borrowers the feeling that no one cares more, works harder or is more
interested in their best interests than you. When this happens, the sale is a
foregone conclusion. By being different and better than your competitors, you
will achieve greater success and excellence in your career.