Bliss Sawyer's Marketing Blog

A little hand holding is a good thing

Getting an application is a thrill.  No matter how long you've been originating, another loan in the pipeline is a good thing.  It gives you a bigger paycheck, validates your marketing and hey - someone likes you!  I know you work hard for each new loan, giving the potential borrower your attention and doing everything you can think of to convince them you are the best choice.  But here's a small piece of advice...

This post was prompted by a phone call I got from an old friend.  They recently closed on a loan and were thrilled with everything.  Until closing.  I was impressed when they told me how the loan officer had handled them at the beginning.  Carefully explaining options and helping them make a decision.  There was constant contact and attention through the process.

Unfortunately, the end of the transaction wasn't great.  And it was such a simple thing!  These are not first time homebuyers.  They've done a few mortgages.  But this does not mean they understand the process, and I think this is where the loan officer missed a step.  The borrower was e-mailed a copy of the HUD-1 and when he called the loan officer for some clarification, he was told "I explained that already.  I gave you a good faith estimate.  It's the same."

Now, those statements are correct, but most consumers are not able to translate a good faith estimate to a HUD-1 statement.  They look different and there has usually been a couple of weeks in between the two.  As loan officers, you can look at a GFE or HUD-1 and understand it within seconds.  Remember - that's what you do for a living.   Not what the client does.

A little hand holding at the end of the transaction is worth gold.  Golden referrals.  It doesn't matter if you think they should understand the numbers, if they don't - it just makes them feel frustrated.  You worked hard to get the application, get it through processing, underwriting and into closing.  Don't shoot yourself in the foot by not taking it to the finish line.  Give over-the-top service all the way through funding.  Then when you ask for referrals... you'll get them.

Make it special

Many of you are filling your pipeline with loans.  (Thanks, Mr. Bernanke)  The pain of last year is still fresh enough that you know you must step up service and marketing in order to maintain a strong business through the good, the bad and the ugly.  Here's some ideas for over-the-top service.

• Return calls and email immediately.  Doesn't matter if they are calling about the same thing as yesterday and you don't have a different answer.  Set a goal to call within 30 minutes of a message.
• Work longer to make sure you get it all done and done right.  I've been in the industry since 1991 and trust me, this won't last.  "Make hay while you can." 
• Have a meeting with you staff, get them on board as well.  Get their input into offering extreme service.  Don't just expect them to work longer, offer an incentive.  You all win in the end.
• With every possible loan situation, ask yourself this question "What can I do for this individual to make their experience memorable."  People want to feel special.  You may need to run to their office for signatures.  Maybe a few extra phone calls or emails.  Send them a thank you note - just for making application.  Whatever it takes!
• Take those Realtors to lunch.  This is NOT the time to cut back on your face to face time with referral partners.  You should even step it up a notch right now.  No time for lunch?  Ask them to meet you for breakfast or coffee.
• Closings.  BE THERE.  Even if it is for the first five minutes to go over the settlement statement.  You did all the work, why not be there for the final curtan call.
• Take a small gift or have something sent after closing.  Clients that feel special will reciprocate with referrals.

The goal during this time is to create such a strong reputation that your clients are out singing your praises... not a bad way to build a business.  By the way, don't pick and choose what you want to do here.  Do them all!

Pizza and Business Cards

Closing can be one of the best times to ensure yourself continual referrals.  First, I will stand on my soap box and restate - you must go to your closings.  If you feel that you are too busy, consider being at the closing for the explanation of the settlement statement, trust deed and note.  This should only take about 15 minutes and the majority of questions will arise during this time, giving you the opportunity to smooth over any miscommunication.  This is the approach I took with many of my transactions and can assure you that I had a steady stream of referrals in my pipeline. 

It's always a great idea to give something of appreciation at closing, but what about the clients that you feel have a greater potential to steer business your way?  Such as the human resource director of a company or the young couple that has many extended family members in the area.   There are times when it is beneficial to spend some of your marketing dollars in this direction.

Find out when your borrowers will be moving into their new home and if they are doing it themselves or through a moving company.  (I would only suggest using this idea if it is friends and family helping - I never felt a need to feed paid movers.)  Let them know that you will be having pizzas delivered to help feed the army.  You can deliver this yourself or establish a relationship with a pizza place that is willing to deliver the pizza along with a few of your business cards.  Helium balloons with your company's logo or "Congratulations on your new home!" would also be a great touch.

The thoughtfulness of this action will be remembered long after the move is complete as you have created "Raving fans" to help your business grow.

Right from the horses mouth!

Dawn Parrish with Ameris Bank isn't actually a horse, but she hit the nail on the head when she sent in the following 'best marketing practice' to enter our contest.  If you are truly trying to develop and maintain a reputation as a trusted resouce, this will put you in front of Realtors, borrowers and closings agents (at a time when they are all most likely feeling good) giving you the opportunity to establish strong referral relationships.

I am a very new originator but I am already finding that the old reliable ATTEND YOUR CLOSINGS is still working wonders. The title company loves when I am there to answer questions and they are more than willing to have me make the explanation to the borrower.

Not only does it make an impression on your buyer, seller, realtor and the title company - but a recent experience emphasized how important this was. Another realtor had stopped by the title office to drop something off and the closing agent introduced us. The realtor said, "My lender never attends a closing." I smiled and handed him my card and said, "But she can - just call me." He was delighted and he called!

This is a practice that I truly feel contributed greatly to my success as an originator.  If you are feeling too busy, take the time to be there for the settlement statment, note and trustdeed, explaining that you can be reached by phone if there are other questions.   Especially if there were problems during the loan process, this step will be the one that is remembered.  Thanks, Dawn for the great reminder!

Inexpensive Closing Gift

At your closings (where of course, you are present) give a self-inking address stamp.  Some office supply stores even have same day service.  To make it even more effective, place an address sticker on it that has your name and phone number.  You can order these in bulk many different places.  Current has great options...Make sure the label is bright and eye-catching. 

Remember to use your labels on all your marketing efforts.  Even a plate of cookies should have it.  Everything you give out should be branded by you!

No Cost Closing Gift

Being present at your closings is one of the best places to market and reinforce a business strategy of working primarily on referrals.  Take this opportunity to give some type of closing gift to help cement a relationship with your borrowers.  This can also help to smooth over any rough edges that may be left over from the loan process.

In the past, I have given everything from a plant, a candle, a jar of house shaped pasta and a self inking stamp.  These are all great ideas, but the return on investment is probably not as high as possible.  The following idea is free and can also help you to develop other referrals sources.

Create a "Welcome to the Neighborhood" packet with offers from local businesses.  Such items as $5.00 off an oil change, 10% savings on plumbing services, buy one sandwich - get one free, etc.  This does require time and effort, but that is also the best part, as this is another networking opportunity for you.  As you contact local businesses, give them your business cards and explain what you are doing and that you want to help expand their business.  As you show  interest in their business a mutual feeling of trust will develop and leads will naturally follow.  Here are a few ideas to get you started:

Plumber
Electrician
Landscaper
Sprinkler installation/repair
Pool guy
Handyman
Car repair
Furniture store
Oil change
Local pool or rec center
Computer repair
Nursery
Ice cream place
Restaurant
Pest control
Bowling alley
Carpet store
Cleaning service
Accountant
Jewelry store

You could probably open the phone book and find many more.  It is a good idea to get places close to your location so you can visit their business regularly and hopefully maintain a long-lasting networking relationship.

At the point of prequalification or application, mention this package of savings you provide at closing for your borrowers.  This may be one of the small things that sets you apart from other lenders and lands you the deal!

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