Using Loan Officers to Screen Buyers & Close DealsDaniel Dobbs2023-05-25T20:40:57-07:00
How many times have you worked with buyers who “just had a desire to shop” & then discarded you or had their relative/friend write up the offer? One time is too many!
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There is a solution! “The Bloodhound Analogy”
You need a “bloodhound” for an MLO, who will pursue your prospects, persuade them to provide information (financials, credit history) & report to you ASAP.
To be successful, your MLO needs as much info as you can glean from the buyer.
Ask a few direct questions before you pass the referral on!
If buyers are evasive let’s find out BEFORE you lose time from family, friends and legit clients who will COE and put commissions in your bank account.
Beware of buyers who ask a lot of questions but don’t offer any insight into their motives /timelines. The more info you have, the quicker we ”know if a buyer is “real”.
BTW: It’s a myth that you’re required to give out “3 cards” as referrals. If you don’t like referring buyers to a specific lender, you lose a degree of control over your transaction. It may earn you a gold star with real estate academicians but it’s playing commission roulette with your bank account.
Minimal Info:
Buyer Name/Phone#/ Email (email is critical)
The buyers desired geographical locations (cities)
The price and/or payment range they desire?
Income Level? Job- Profession?
The 1st sign your buyer is a time-waster: they simply avoid filling out loan paperwork.
If your buyer hasn’t’ responded to 3 phone calls & several emails from your MLO (and your prodding) then move on to other buyers until they do.
If the buyers are real, they will be returning calls, opening emails & beginning the loan process by getting a free fully underwritten “DU” loan approval.
A “DU” is a computerized loan approval ( by Fannie – FHA –VA) which demonstrates the buyers has completed their ENTIRE loan package & (when approved) been assigned a “case number” which virtually guarantees there will be no last-minute (buyer/lender) surprises before COE!
With a DU Approval…
You and the Buyer Take Control!
1) Improve your buyer’s confidence. Whether buyers are pushing their purchase price, have credit issues, job gaps or inconsistent income; virtually all buyers have anxiety about qualifying for a loan.
Remove their anxiety & they’ll write offers sooner rather than later.
2) There’s no more waiting on a return call from an MLO while your offer twists in the wind you have the DU “in hand” before the offer is submitted.
3) You can focus on opening escrow and meeting timelines.
4) The loan contingency period is met (before inspections & appraisal fees are incurred).
5) COE’s are timely and can be completed in 35 (vs. 45-55) days.
6) Offers are accepted more readily which equals fewer property showings, less time for buyers to become discouraged in this sellers’ market and less time spent writing needless offers.
7) Avoid losing deals at the 11th hour or closing late AFTER multiple (panicky) delays. Late COEs (or none at all) cost us thousands of dollars in repeat & future biz
8) Avoid Fraud! A DU detects fraud before agents get unwittingly dragged into it.
9) So ask your current lender if they are willing to go the extra step (it involves several hours to input the file and provide disclosures) to “DU” your buyer’s application before they begin looking for a home and (running you around).
Be prepared to hear the following excuses from many MLOs:
A “pre-qual letter is just a good as a DU.
No, they’re not & we all know it. Just ask around your office if you have any doubt!
A “DU” can be manipulated to say anything.
True, but why MLO work hours on a file that won’t fund?
In Closing
If an MLO wants your biz, they need to earn it by gaining your,(and your buyer’s) trust by making the extra effort! IF their answer is “NO”..you will want to find an MLO that will!
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