A career as a mortgage broker can be as challenging as it is rewarding. Success as a mortgage broker is based on strict compliance with the law, good relationships with customers and financial institutions, and your own commitment to continuous improvement.
With that in mind, there are seven ways you can be successful as a mortgage broker and build trust between you and your clients.
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1. Observe full compliance with the statutory provisions
As a mortgage broker, you are the financial intermediary between homebuyers and potential lenders such as banks and Wholesale mortgage lender. Therefore, you must comply with federal regulations and your state’s licensing requirements.
For example, you must pass a written proficiency test and submit fingerprints for a background investigation under the Safe and Fair Enforcement of Mortgage Licenses Act (SAFE).
Requirements include your mortgage guarantee agreement and proof of advanced training. Visit the National Mortgage Licensing System (NMLS) Resource Center for reference.
2. Always be ready to offer multiple options
Customers have different housing needs and specific financial situations. You should be able to answer their questionsExplain the different types of loans and offer you options depending on their income and debts.
Maybe they have access to one become Loans, or they may qualify for government assistance. Either way, you need to do your research and qualify potential clients for multiple mortgage options.
Run the numbers and try to match customers with the best products based on their creditworthiness and housing needs. Instead of pushing on any particular option, provide thorough guidance – and let them make the final decision.
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3. Be transparent about brokerage fees and closing costs
Learn to deal with customer expectations and have difficult conversations. After all, borrowing a huge sum of money can be terrifying, and not everyone will be happy with the options you offer.
Make it less intimidating for your customers by sticking to the facts and setting out all the important information they need to know. It helps to speak in a professional, calm, and reassuring tone.
Most importantly, you remember to fully disclose any fees that may affect your buyer. Transparency is important in order to build a positive and lasting relationship with customers and to comply with the Dodd-Frank Act.
For example, talk about closing costs upfront and why they can reach around 3% to 5% of the total loan amount.
Providing a full breakdown of the fees incurred in completing a real estate transaction and fees related to loan origination, evaluation and survey, property tax and property insurance.
4. Continue to take part in workshops and courses
Mortgage brokers must complete at least eight hours of training within the same year of obtaining an approved license status. These lessons must include courses in ethics, federal law, nontraditional mortgage lending, and an elective that the state may require.
Also, as per the SAFE Act, you must meet mandatory federal educational requirements for license renewal. Refer to the NMLS Resource Center and country-specific required training charts for more information.
In addition, you should take the time to attend industry workshops and optional courses. This way, you will stay up to date on the best business practices, the latest trends and compliance standards.
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5. Show your success
Reassuring your overwhelmed customers is an integral part of your job as a mortgage broker. Build their trust in you by providing testimonials from previous clients and letting them know about your qualifications.
Display your awards and certifications in your office. You can also use your website or LinkedIn profile to generate mortgage leads and showcase your achievements. Gather written notes from your connections, especially from previous customers, and display them on your side.
6. Market yourself and maintain your network
Storing personal information about your customers can go a long way. Making them feel like you care will make them more comfortable. And don’t forget your previous customers either. If you’ve helped them in a satisfactory manner, they will likely come to you when it comes time to extend their mortgage term.
It is equally important to establish connections with financial institutions and real estate agents. Get online, improve your profile, and reach out to potential contacts.
To be successful, “brokers must be able to market themselves and operate as self-starters,” said Kimber White, president of the National Association of Mortgage Brokers (NAMB).
“It’s one thing to get a large volume of refis and leads generated by your company’s marketing department. It’s another thing to build a broad community network and the ability to generate leads yourself.”
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7. Build resilience from rejection
Resilience and passion are underrated traits of successful mortgage brokers. You will often experience rejection and fear, especially if you are just starting out. Maintaining a professional mindset and not taking rejections personally is critical to the job.
“Every day you are turned down by potential customers, banks and even lawyers and real estate agents when you try to reach an agreement,” says Otto Dargan, founder of Home Loan Experts (AU). “Sometimes it’s just about accepting your defeats and moving on.”