LOSING THE BATTLE

There is an old saying that says "show me a good loser, and I'll show you a loser". That saying may be true in sports but not in business. No one likes to lose business, however, it happens to everyone and if you can be a good loser, it could make you a winner down the road.

When you lose a deal, rule #1 is not to burn any bridges. By going off on someone or slamming your competition (whom they have decided is better than you), you have nothing to gain. The distorted pleasure of slamming someone will be short lived and the pain of your angry actions could linger for years.

Rule #2 is put them on your mailing list. Chances are, that person will need a mortgage again some day and if you lose gracefully and stay in touch with them, you may generate future business and regerrals from them after all.

Also, remember the lender they originally chose may have done a lousy job, especially if the person shopped several lenders. If so they probably wound up like most borrowers who talk to too many lenders. They chose the one who promised too much because they didn't know any better and they unknowingly set themselves up to be disappointed.

So don't give up just because you lost a battle. The war is still out there to be won!

DO IT NOW!

In business and in life, few words are more important than one of the shortest complete sentences in the English language. If you want to work smarter rather than harder, take this short sentence to heart.

Do it now!

This sentence can also be expressed in a slightly longer form... Do not procrastinate!

Eliminating procrastination will reduce your stress and free up precious time. How many things can do that?

REFINANCE "WISH LIST"

Here is a tip that always works!

While many people can currently benefit from refinancing, most can not intelligently refi at current market levels due to their excellent first mortgages obtained within the past few years. However, with a small market improvement, many of them can. Rather than telling them you cannot help them because the rates have gone up or are not yet low enough, try this time tested tactic...

Analyze their situation and do everything you normally would as far as asking questions and building rapport. Then explain the situation in regards to interest rate volatility and offer to watch the rates for them and call them if and when the rates are such that refinancing would be wise. Then enter their name in any computer file that can be sorted. In this file be sure to include all of their basic information, current loan information and their desired loan.

Lastly, add a column for what the going "par rate" would probably have to be in order for their refinance to make sense. Sort your file by that required par rate and whenever rates go down, you will have an entire list of ready, willing and able borrowers who will be thrilled that you remembered them!

CALL, SEE, ASK AND WIN

This week, as every week, LO Insights will be dedicated to you and the success of your business. What is different this week, however, is that you are hereby requested to invest a maximum of one hour per day (yes, starting today), to improve your business and make 2006 your best yet! By spending these five hours this week, you will reap the rewards for the next 48 weeks. A classic investment with little or no downside risk!

Your first assignment, should you choose to accept it, follows...

Please schedule some quality time with all of your referral sources in January. Ask them all the same scripted questions and ask the tough questions too. For example...

• What could we do better for you?
• What is most important to you about what we do?
• How can I help you grow your business this year?
• What do you like most and least about our services/company?
• What could we do differently that would be a good fit for me as a new referral partner and would you mind introducing us?
• If I could give you a few questions to ask your buyers who already have a lender that are designed to make sure the transaction goes well would you be interested?

Each of these questions are helpful, non-threatening and the type of questions your customers will appreciate.

So take your hour today to call you referral sources to schedule this meeting. You and they will be glad you did!

I WANT CANDY

Did you know that every single one of your borrowers feels the same way about you? Did you know they all want the same thing from you?

Now you do.

Your customers want a few very simple things that you must be vigilant in providing to everyone, every time.

Borrowers want a fair deal. Borrowers want professional advice and guidance. Borrowers don't want any surprises. Borrowers want an easy process. Borrowers want to feel important and appreciated.

That's it. If you provide all of your customers with their five wants, you have given them a reason to come back to you again and again. Plus, every person naturally wants to share their great experiences with their friends and family so that they too can have the same pleasant experience.

Much like a great restaurant, if the food and the experience is excellent, people will want those they care about to be able to enjoy it as well.

So give every customer what they really want and treat them like the gold they are because there is no better source of referrals than the "Raving Fan"!

COACH THE SOURCE

As we know from last week, Realtors simple do not direct mortgage business with the same frequency of several years ago. Accepting this fact is difficult at times for us and them; however, with a little coaching the trend can be swayed in your favor.

Your loyal Realtors would like to send every one of their buyers to you, which won't happen, but if the agent is strong and plants the right "seeds of doubt" in the minds of their buyers, you can both increase the percentages. So whenever your agents have a buyer who already has a lender, encourage them to ask some of the following questions...

How much experience does this lender have? Do they really know and understand our local market? Is their company reputable? Can you afford to lose your earnest money if they don't perform? If I could provide a proven lender with the same pricing would you be interested in not taking any chances?
 

Even better than these questions is for the Realtor to get in the habit of calling the buyer's lender and doing a quick interview to determine their competency and reliability. Once they do, they will usually have enough food reasons for the buyer to call you!

STRANGE BUT TRUE

Realtors don't refer borrowers to lenders as much now as they did a few years ago.

That, my friends, is a fact.

How many times have you heard this one from a Realtor lately? "I have these new buyers I would love to send your way, but they have already been pre-approved by their own lender." Probably more times than you care to recollect.

Our reality in 2006 is that almost every borrower out there knows a lender or has a referral to one from a trusted family member or friend.

It has been reported here before, but it is worth another look. in 2004 NAR (National Association of Realtors) did a survey showing that borrowers are three times more likely to trust the lender referral of a friend or family member than their Realtor.

This may be hard to believe (and imagine how hard it was for NAR to admit), but it is true. We all know that Realtors have much more experience in dealing with lenders than someone's best friend does, but the trust factor of a friend versus a Realtor can not be underestimated.

Our business is increasingly based on getting to the customer before the Realtor does and this trend will continue to grow. next week, we will look at how to change your approach and use this trend to your advantage in 2006!