Trust & Credibility… The Combination to Mortgage Power
By Mike Baker
What if you could reach the pinnacle of trust and credibility in the eyes of your prospects, borrowers, and referral sources? What if all of your clients perceived you as a person of trust and credibility? What impact would this have on your mortgage business? If this is the case, you're making lots of money and doing well in the mortgage business right now. If this is not the case, this article will get you on the right tract if you have the desire and are serious about becoming a world class mortgage originator!
As complicated or as simple as this sounds to you, if your clients believe that you have their best interest in mind, they will trust you. If your clients believe that you have extraordinary knowledge of the mortgage business, you will have credibility. If they believe both, you will have begun the process of having those clients for life and the rewards are astounding! If you do this right, you will not only have short-term impact immediately, you will also create long-term profits and growth guaranteed. Why, because you will be among the most professional and well respected in the mortgage industry in addition to writing more loans, your income per loan will go up, and you will have created a referral machine. On top of that, you will be ranked in the top 20 percent of all loan officers in the nation. You will be a "trusted advisor."
While mastering trust and credibility is the key, not everybody is doing it. In this article, I'm going to break this down in a way that you may have an epiphany and really understand this so that it causes you to take immediate action on mastering this to grow your business. Breakthroughs happen when you identify and use tactics that create both trust and credibility.
First of all, it's important that you understand that you need both. You won't have the power or the punch with just one. Remember Barney Fife on the Andy Griffith Show. Barney is a good example of "trust" without "credibility." We all loved Barney, because he was very honest and everybody knew that Barney really cared about them. As such, everybody trusted Barney. However, they did not want Barney near their kids because they never knew what he was going to do next as Barney had a reputation for making mistakes. Since they never knew what was going to happen with Barney, everybody scattered when he loaded his gun because he didn't have the "know how" to handle the gun. Many times he shot himself in the foot. No credibility. They also didn't want him in the choir, on their team, or in their group, etc. You get the idea. He had trust, but no credibility.
Now Andy Griffith on the other hand had both. Everybody trusted Andy because they knew that he cared about them. They also went to Andy for advice because Andy seemed to always know what to do. He had common sense and wisdom and was always a step ahead of everybody else. Credibility! He had both trust and credibility.
I want you to get excited and be passionate about developing trust and credibility! Our industry needs you to master these two traits. With all of the predatory lending issues and our declining reputation as mortgage originators, the world needs trusted advisors to step up and serve their mortgage finance needs. In November of 2003, USA Today published a study that ranked loan officers at the bottom of recent customer service surveys in the financial services industry. Ouch! Let's get it together. I don't know about you, but I have a grit-teeth motivation to change this perception in our industry. Let's get started!
Let's start with "trust." Trust happens when your clients believe that you have their best interest in mind. In other words, how well do you show your customers that you care about them at point of sale? While a doctor may have "bed-side manners," (or not), loan officers have "desk-side" or "phone-side" manners (or not). Here are some eight skill-tips for mastering trust.
1. Focus more on the customer than you do on the commission check. If you focus on service, the rewards will be there, including future referrals. If you focus on your commission and how much money you're making on a particular transaction, you may never get rewarded and you certainly won't get referrals. Customers can smell your intentions so your focus has to be pure.
2. Return calls in timely manner. If you can't, get some help. Accessibility and response time let's your customers know how much you care about helping them. If you don't call them, respond to them, or are difficult to get in touch with, their perception of you will be the opposite of trust and care.
3. Establish rapport. Whether by phone or in person, you must establish some type of rapport. Treat them like people. This is easy and there are no excuses for not doing this right. A simple, "Hi, how are you today" can be enough if you're a sincere, likable person. If you're not, you'll have to work a little harder. : You don't have to make best friends here, just show that you are excited about the opportunity to assist them. Enthusiasm is better than boring and acknowledgement is better than rudeness. Remember, customers are the reason for your business, not an interruption of it.
4. Ask different questions than your competition. For example; Have you thought about how old you want to be when your home loan is paid off? How old will you be with your current plan? How much will you owe on your mortgage in 5 years, 10 years, etc. How much will you owe on your mortgage at key stages of your life such as children's graduations, kids college, weddings, grandchildren and other important interest they might have?
5. Listen to your customers like you've never listened before. Hear what they're saying and respond accordingly. Be sincere!
6. Make sure that the "trust" message is part of your culture. Tell the world and show the world that "trust" is important to you, your business, and how much you care about your customers. Make sure you orient and train your support team to communicate this message consistently as well.
7. Be creative and "do things" that show you care. Beyond donuts!
8. Don't let your personal life, the market, or the competition allow you to stray from any of the above. See yourself as an important component to the industry!
9. Find out what your customers are saying about you. Surveys are important, but the most critical measure of all, is the evaluation of your business where you gain knowledge and insight of what your customers are telling their family and friends about you. This knowledge is the best gauge for the health of your entire mortgage business.
Now for credibility. Credibility happens when your clients believe that you have extraordinary knowledge of the mortgage business and that you have the ability and willingness to use this knowledge to help them. How good is your mortgage advice? Will your mortgage advice be able to help your clients? Do you communicate your advice effectively and with power?
1. Your presentation is key! How well (or not) you present your mortgage advice here will determine their perception of credibility. Remember, your presentation must be based on the answers to the questions you've asked them when developing trust. Also, it is not enough to just tell them, you must show them if you plan on establishing world class credibility. Professionally show them loan comparisons and customize the numbers to calculate based on how long they will live in the property. Show them tax benefits and how small financial differences can make huge changes over time when it comes to a mortgage. Turn-key tools are available today in the industry to help you do this effectively.
2. Get smart! Study underwriting guidelines for all of the loan programs. Interview superstar loan officers and take notes to gain insight on your business and how customers perceive you. Attend seminars and workshops. Attending seminars can impact you in four ways. You get to "get away," you network, you learn something, and usually have fun doing it!
3. You also need to understand the mortgage markets and how the money business works. My father always told me and my four brothers to "know your business." Don't just know your job or department, know the business your in, how it operates and functions from A to Z. You don't have to be a secondary marketing wizard, but you do need mortgage market knowledge to give your clients world class advice. Knowing the history of mortgage markets, how rates change, and the best ways to track and communicate this to your clients is a "critical must" to educate your clients at the highest levels. Great tools exist to day to make this happen. These tools will not only make you money and save you money; they will make you look good in front of your clients. You must invest in yourself and your knowledge to grow and get better.
4. Consistently evaluate your upfront, "point of sale" contact with your customers. Analyze what you're saying and how you're saying it. May loan officers who are serious about growth are audio taping themselves and reviewing the tapes for improvement. This is a discipline that I have done. It's not my favorite thing to do (that's why I say discipline), but it's one of the most rewarding!
5. Consistently evaluate your customer touch points during the loan process. Analyze how they are being contacted and responded to. Are you contacting them personally or is your support team contacting them. Be proactive here! Ask your customers how they want to be contacted. E-mail, phone, fax, etc.
6. Establish a world class system to keep in touch with all of your customers after the loan closes. This is one of the most important. What Customer Relationship Management (CRM) tool do you use? Are you using newsletters, cards, or loan statements to keep in touch? Are you strategic with your approach? When you start understanding that your job really begins when the loan closes, you'll be on your way to referral heaven.
The details matter! Make sure everything you do promotes trust and credibility. The moment that you make up your mind that what you do makes a difference, it will make a difference in what you do. Do it now and do it right, and watch your business soar!
Mike Baker is the CEO of Mortgage Coach as well as an industry speaker and author of two best selling mortgage books, "Mortgage Power" and "Loan Officer Recruiting." He can be reached at 949-608-3006 or visit www.mortgagecoach.com and www.mortgagespeaker.com.