Basic Advice for Loan Officers to Get Buyers to Trust You

Buyers NEED to trust who they are dealing with when it comes to real estate. It has gone way past the point of wanting to trust lenders, loan officers and agents; they NEED to in order for them to really feel secure in their home purchase. Here are some simple ways to help loan officers gain the trust and business of potential buyers.

1.      Understand what makes people want to buy a home and know how their home purchase can help them in their long term and short term economic goals. This goes beyond the elementary “It is a good investment.” Really be able to explain how a house can help their individual situation and show the benefits it offers compared to renting.

2.      Know how to read and understand a rate sheet. Explain the rate sheet to your client in detail until they understand it as well. Explain to your client the “bait and switch” method and let them know you are telling them all this so they won’t be surprised at closing.

3.      Learn basic underwriting guidelines. So many loan officers are upset when their documents are turned back due to small discrepancies but the rules are the rules and it doesn’t look like anyone is budging on them anytime soon. By gaining knowledge on the federal guidelines and applying this knowledge, loans will go through underwriting faster and therefore close faster; a win-win for all. Try to also refrain from telling customers that you will not be asking anything else from them during the process because this may set you up for failure if you later learn you need more information. Always keep the borrower informed of why you are asking for what you are asking for and as long as you are upfront with them, most people appreciate it.

4.      BE HONEST! No matter what, always be honest. Even if it compromises the deal, be honest. If the borrower cannot or should not financially invest in real estate with your company, tell them where they should. One turn away could turn into 10 referrals. It is the honest, hardworking entities that are left in vacant world of mortgage for a reason.