Using Loan Officers to Screen Buyers & Close More Deals
How many times have you worked with buyers who “just had a desire to shop” & then discarded you or had their relative/friend write up the offer.
Related Post: Sign of Serious Buyers!
There is a solution! “The Bloodhound Analogy”
You need a “bloodhound” for a MLO, who will pursue your prospects, persuade them to provide information (financial and/ or credit history) & report back to you ASAP.
To be successful, your MLO needs as much info as you can glean from the buyer. Ask a few direct questions before you pass the referral on! Here’s a list of questions you can ask discreetly.
If buyer’s are evasive, let’s find out BEFORE you lose time from family, friends and legit clients who will COE and put commissions in your bank account.
Beware of buyers who ask a lot of questions but don’t offer any insight to their motives / time-lines. The more info you have, the quicker we ”know if a buyer is real”.
BTW: It’s a myth that you’re required to give out “3 cards” as referrals. If you don’t like referring buyers to a specific lender, you lose a degree of control over your transaction. It may earn you a gold star with real estate academicians but it’s playing commission roulette with your bank account.
Buyer Name/Phone#/ E mail (email is critical)
The buyers desired geographical locations (cities)
The price and / or payment range they desire?
Income Level? Job-Profession?
The 1st sign your buyer is a time waster, they simply avoid filing out loan paperwork.
If your buyer hasn’t’ responded to 3 phone calls & several emails from your MLO (& your prodding), move on to other buyers until they do.
If the buyers are real, they will be returning calls, opening emails & beginning the loan process by getting a free fully underwritten “DU” loan approval.
A “DU” is a computerized loan approval ( by Fannie – FHA –VA) which demonstrates the buyers has completed their ENTIRE loan package & (when approved) been assigned a “case number” which virtually guarantees there will be no last minute (buyer/lender) surprises before COE!
With a DU Approval…
You and the Buyer Take Control!
1) Improve your buyer’s confidence. Whether buyers are pushing their purchase price, have past credit issues, job gaps or inconsistent income; virtually all buyers have anxiety about qualifying for a loan.
Remove anxiety & they’ll write offers sooner rather than later.
2) There’s no more waiting on a return call from a MLO while your offer twists in the wind you have the DU “in hand” before the offer is submitted.
3) You can focus on opening escrow and meeting time-lines.
4) The loan contingency period is met (before inspections & appraisal fees are incurred).
5) COE’s are timely and can be competed in 35 (vs.45-55) days.
6) Offers are accepted more readily which equals less property showings, less time for buyers to become discouraged in this sellers’ market and less time spent writing needless offers.
7) Avoid losing deals at the 11th hour or closing late AFTER multiple (panicky) delays. Late COEs (or none at all) cost us thousands of dollars in repeat & future biz.
8) Avoid Fraud! A DU will detect if a buyer is engaged in fraud before any of us get unwitting dragged into it.
9) So ask your current lender if they are willing to go the extra step (it involves several hours to input the file and provide disclosures) to “DU” your buyer before they begin looking for a home and running you around.
Note: Be prepared to hear these excuses from many MLOs:
1) A “pre-qual letter is just a good as a DU. No, thats not so and we all know it.
2) A “DU” can be manipulated to say anything! True, but why MLO would work hours on a file that won’t fund; better to “kick deal out”at the beginning than after we both have invested countless hours in this process.
If an MLO wants your biz, they need to earn it by gaining your,(and your buyer’s) trust by making the extra effort! If their answer is “NO”..you will want to find an MLO that will.
No Gimmicks. No Hidden Fees.
Contact us for our listing rate of 1.5% commission and save!