Mortgage Sales and Marketing

Confessions of a Serial Salesperson

2008-06-02T11:17:00.000-04:00

When the Judge was presented with the business development evidence, Taylor Success confessed and was clearly identified as the responsible individual for sales growth. Taylor Success was easily tracked down when we followed the trail of consistent sales contacts. It was clear that Taylor Success was following a sales action plan and responsible for the highest serial sales in history.
The Pattern of Serial Selling
When we asked satisfied clients about their experience with Taylor Success, the alleged sales person, they identified the solution selling path of success as the primary reason for doing business. Many of the clients were actively pursued even when they weren’t ready to purchase. This evidence substantiated the long term sales plan Taylor Success executed over months of contacts with potential clients.
Top of Mind Sales Strategy
The best practices of this serial seller maintained top of mind awareness in the psyche of potential clients. This sales drip system was balanced and consistent making it easy for potential clients to remember Taylor Success. When the time came for clients to purchase, they felt compelled to purchase from this serial salesperson.
Based on the fictitious scenario presented here, would you be convicted in a court of sales as a serial salesperson? A serial salesperson has these key traits. • Follows a consistent, documented sales plan. • Has a written sales process to capture sales. • Uses a sales follow-up system that keeps track of client opportunities. • Evidence of sales activity is documented and traceable.
Steve Martinez is the leading authority on automating and systematizing the selling process for the Printing Industry. His company, Selling Magic, LLC teaches business how to simplify, balance and automate the complex selling process. http://www.sellingmagic.com
Article Source: http://EzineArticles.com/?expert=Steve_Martinez

Telephone Sales Made Simple

2008-05-30T10:43:00.000-04:00

Most sales managers and seasoned sales executives know that telephone sales and cold calling are among the best strategies for improving the sales in a company's sales department. But, not all salespeople enjoy doing telephone sales and many are not very good at. Is there a way to make telephone sales simple? Well, there are professional telephone sales strategists and consultants who can make it seem simple, but in the end it is not as easy as it looks and takes a significant commitment to the process.
How do you find a really good telephone sales consultant or marketing guru that is worth their weight in gold? Well, the best way to find the perfect telephone sales strategist and consultant is to find a seasoned executive who specializes in customer service and telephone sales. With the proper customer service background such telephone sales executives and consultants are exactly what you are looking for.
They can make telephone sales seem simple. How do they do this? Well, first they come in and do a survey of how your current employees and your sales staff are doing with regard to telephone sales. Then, they make suggestions on what you can do to improve things and use simple training techniques to help the employees kick their bad telephone habits and develop new improved skills. That is how it works, but you may be surprised how difficult it is to do without these seasoned professionals on your team. Please consider this in 2006.
"Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; http://www.WorldThinkTank.net/. Lance is a guest writer for Our Spokane Magazine in Spokane, Washington
Article Source: http://EzineArticles.com/?expert=Lance_Winslow

Pipeline Management - Your Path To Achieving The Sales Edge!

2008-05-29T10:30:00.000-04:00

Those sales teams who achieve the sales edge, do so with a clear understanding of their pipeline's health. Pipeline management allows a sales person and/or management to more accurately forecast their sales, better manage their time, and ultimately close more sales. We all want it...the full pipeline that is-a sales funnel with more opportunities at the top, converting to qualified leads, and feeding the closed sales at the bottom. With it we are sales stars.
And without it we are constantly riding the amusement park favorite-the ROLLERCOASTER. While the rollercoaster can be thrilling it can also be exhausting and is definitely ineffective as a long-term sales management strategy. We can only ride that rollercoaster so long before the "thrill" wears off. And, that's where pipeline MANAGEMENT fits in.
But, what is Pipeline Management really?
Pipeline Management is a process by which you continually evaluate your active opportunities (from prospects to booked customer) for their balance of QUANTITY and QUALITY.
QUANTITY: We're used to looking at our pipeline for quantity since this is usually where our sales forecasts come from. Unfortunately, we often do not look at the right things when evaluating quantity. We either value the quantity at face value (where all opportunities are valued at their full estimate regardless of where they are in the sales process and what our history is for closing deals we come across) or they are valued and factored against a "gut instinct" of probability (I'm 95% sure this will close). The problem with this method, however, is that some sales people are overly optimistic (mostly just wanting to BELIEVE they are in better shape than they really are) or are incorrectly tagging where the opportunity really is in the sales process. The first steps to accurately managing the quantity of your pipeline are 1) define your sales process contact types and milestones, 2) determine your conversion ratios for Prospect to Customer; Lead to Customer; and Proposal to Customer. These percentages will become the Pipeline Weighting factors by which you calculate your pipeline's WEIGHTED FORECAST. If you don't know your ratios, start with your close ratio. How many of the proposals/bids you provided last quarter booked as orders? Then work back from there. A starting place would be to go with a weighting ratio of 10% at PROSPECT stage; 30% at LEAD stage; and 50% at PROPOSE stage. Then, monitor your actual conversion ratios each month and tweak them as necessary.
QUALITY: Having the right volume in your pipeline is a key factor to success and understanding where you are weak, and will help you determine where exactly to spend your time. Measuring quality, though, is equally important. Too often when I help companies with pipeline management practices I find that the biggest problem in sales forecasting and time management is that the pipeline is cluttered with junk and sales people are wasting time with "follow-up" on prospects that are not playing ball. So, to ensure your pipeline is meeting your quality needs, evaluate every opportunity weekly against the criteria you set for each step in the sales process. If you find a contact is not moving to the next step in the process as it should, then trace back and reassess that you haven't missed something (contact not actually decision maker, other decision making criteria you were unaware of, etc.)
Sales people generally hate reporting. It's a waste of time in their mind and they'd rather be doing what they do best-selling. And, truly they aren't crazy about the accountability and visibility pipeline management reporting can give their management. So while pipeline reporting and review is ESSENTIAL, it is equally important to help sales teams understand how valuable this tool can be for forecasting their own income (assuming they make a commission) and saving their sanity by creating a tool to better focus where they spend their time.
Go-To-Market Strategies is a resource center for sales and marketing professionals and business leaders. Our tools, templates, and services help companies achieve big aspirations with limited budgets. More articles and resources available at http://www.gtms-inc.com
Article Source: http://EzineArticles.com/?expert=Shannon_Kavanaugh

Increasing Company Sales thru Selling

2008-05-28T11:18:00.002-04:00

Do you want to increase company sales? Have you tried every marketing trick in the book and you still need more sales? Have you considered cutting your costs instead of increasing sales? Is there a growing gap in where you want your sales to be and where they actually are today?
Have you considered increasing your company sales thru selling more, as in hiring more sales people, developing a sales department and really going after the market? Well, you can increase your sales thru selling and it is indeed one of the fastest ways.
As you were building up your department or small business you did sales, made sales calls and closed some accounts. Would you like to have a team of sales people out there doing that same thing right now and increase sales in your company?
You can increase you company sales thru selling and in fact it is the easiest way, even if your marketing, advertising is not enough to satisfy your proposed goals. Many company managers and small business people cringe when thinking of setting up a sales force or set of teams out there selling.
Yet, “nothing happens until someone sells something” they say and if this quote is true then perhaps it is time you re-considered selling as a way to advance company sales. Think on this in 2006.
"Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; http://www.WorldThinkTank.net/. Lance is a guest writer for Our Spokane Magazine in Spokane, Washington
Article Source: http://EzineArticles.com/?expert=Lance_Winslow

Mortgage Loan Officer Training Manual - A Loan Office Essential

2008-05-27T13:22:00.000-04:00

If you run a mortgage loan office, you'll know that it isn't always the easiest of tasks, but the rewards can be great.
From time to time, you have to hire new mortgage loan officers to replace staff that have left, or if you're expanding your business.
As you're reading this, you've realized that you need to have properly trained mortgage loan officers on your hands.
You've probably also realized It's not viable to get other members of your office to do the training as there's no guarantee that all aspects will get covered. It may even be a case of your current loan officers deliberately not training your new employee correctly in order to have a competitive advantage within the office.
So one of your key problems is training each loan officer to the same standards.
There are a couple of approaches you could take.
1) Hire a fully qualified mortgage loan officer as a full time member of your staff to handle all aspects of training. You could then be sure that every new loan officer meets the same standards in terms of loan officer training.
2) Put each new employee on a recognized mortgage loan officer training program that can be followed through step by step.
Following one of these two courses will benefit you, and will also benefit your mortgage loan officers. However, the first option may not be a viable option if your business doesn't warrant it. It can be expensive to hire a full time employee just for training purposes.
But whichever way you choose, before you begin hiring new loan officers, you will at some point have recognized the need to have a basic mortgage loan officer training manual. This will help each employee to know the fundamental information and requirements expected from them.
If you go for the second option, then a loan officer training course may either provide a standardized loan officer training manual that you can amend to your business needs, or there will be enough information provided that you will be able to quickly compile your own.
The standardized mortgage loan officer training manual provided with a mortgage loan officer training course may include sections like the following:
Credit Report Knowledge
Determining The Client's Credit Worthiness
Seamless Transactions
Income and Debt Guidelines
Flood and Hazard Insurance
And so on...
These are just some of the sections you must include in your standardized mortgage loan officer training manual. And if you decide to buy one off the shelf and modify it, or if you want it put together by your own full time trainer, it's important to both you and all of your mortgage loan officers that it's done correctly.
If you're a loan officer, a loan office manager, or working as a full time trainer, and you want more information on loan officer training, or to get help building your own training manual, then it's well worth your time taking a look here:-
http://www.loanofficertrainingprofessor.com
Article Source: http://EzineArticles.com/?expert=Tim_Rhodes

Poor Credit Mortgage Leads, To Avoid or Not To Avoid

2007-09-06T09:29:00.001-04:00

These days with the mortgage industry being the way it is, mortgage brokers and loan officers may be finding it tougher and tougher to close deals for people with poor credit.

Although avoiding poor credit mortgage leads all together may not seem like such a bad idea these days for some loan officers, all may not be lost.

If you are willing to reconsider the purchasing of mortgage leads with poor credit, here are a few things to look for.

For starters, look for a mortgage lead company that allows for you to view your mortgage lead before you buy it.

Also, make sure the mortgage leads you buy are fresh mortgage leads. Avoid the recycled mortgage leads because the information will be dated and inaccurate.

Most mortgage lead companies have a comment section on their mortgage leads. The comment section allows for the consumer to get a little more specific so a loan officer such as yourself will have a better understanding of their needs.

By having the ability to view a mortgage lead in its entirety including a comment section, you will be able to get a good handle on the customer’s situation, what their needs are and wether or not you believe you have the resources to help them.

For instance, if the customer lists their credit score in the comment section of the mortgage lead, you will have a very clear idea of what you will be working with and if you have lenders available to go to should you buy the mortgage lead.

If the customer posts a comment such as "In foreclosure, the bank is coming tomorrow, need help fast," You will know that it is too late to help this person and to avoid buying the mortgage lead.

In short, viewing a mortgage lead with a comment section can give you the best indication as to wether or not you have the resources available to you to help the person.

As you already know, the LTV plays a huge role when it comes to a financial institutions decision as to wether or not they will fund the loan.

So look for the mortgage leads where the customer has a lot of equity in their home. This will help soften the blow when it comes to poor credit, or at least help their chances of being approved.

Another thing you can do is expand your resources, seek out the wholesale lenders who will still consider working with poor credit.

I realize finding these lenders will be tough, but the more tools you have to work with and the more lenders you have relationships with, the more deals you will close.

Refinance Mortgage Leads

2007-09-04T10:33:00.000-04:00

If you are a mortgage broker or loan officer looking to purchase mortgage leads, your best bet for a quick turn around time on a mortgage is with the refinance mortgage leads provided by mortgage lead companies.

This is not to say that you can’t have a quick turn around time with purchase mortgage leads, you can. But, as you well know, refinancing a customers mortgage can be done in a very short amount of time. Some as little as three weeks.

Here is something to consider when looking around for mortgage leads and mortgage lead companies.

Keep an eye out for the mortgage lead companies that sell their mortgage leads fresh or in real time.

It is pretty much pointless to purchase a refinance mortgage lead that is weeks or even days old.
Most likely the customer is already working with another loan officer or mortgage broker and is half way through the mortgage process.

Also, make sure you find out how the mortgage lead companies obtain their mortgage leads.
Look for the mortgage lead companies that obtain their mortgage leads through web sites they own and operate.

Otherwise, they are obtaining the mortgage leads from third party mortgage companies and recycling them.

The last thing you want or need is a mortgage lead that has gone through the hands of half a dozen or more loan officers and mortgage brokers.

Remember, you work very hard for your money, so be sure that when you invest with a mortgage lead company that you will be getting what you paid for and closing deals.

Mortgage Lead Tips for the New Loan Officer

2007-08-31T08:30:00.000-04:00

If you are a loan officer and you are new to the mortgage business, one thing you may not have much of a supply of is mortgage leads.

Mortgage leads can be obtained in a variety of ways. Through customer referrals, networking groups, family members, friends, etc.

However, for a new loan officer, you may need to kick start your mortgage business, and investing with a mortgage lead company may be the way to go.

You probably haven’t heard a lot of great things about mortgage lead companies. However, there are some good mortgage lead companies out there. And if you take your time and do your homework, you may just find the right mortgage lead company to fit your needs and budget.

Here are a few things to stay away from:

Avoid the mortgage lead companies that recycle their leads. Recycling means they sell them multiple times to multiple loan officers.

So, most likely these mortgage leads have gone through the hands of dozens of loan officers before reaching your desk, so stay away from them.

Stay away from mortgage lead companies that buy their mortgage leads from third party companies than sell them to loan officers and mortgage brokers at a profit.

You will never know how many times those third party companies sold those mortgage leads to other mortgage lead companies.

In the beginning, your cash flow may be a little bit tight, so look for mortgage lead companies that allow for a low minimum deposits to start out with.

Also, look for mortgage lead companies that obtain their mortgage leads through web sites they own and operate. This is always a good indication that the mortgage lead is of good quality.

And look for mortgage lead companies that sell real time mortgage leads, and/or sell them exclusively. When you buy your mortgage leads exclusively you can cut out your competition all together.

Real time mortgage leads are also known as fresh mortgage leads, so they are hot off the press once you purchase them. With real time mortgage leads your closure ratio will be much greater and the return on your investment will be that much better.

And why shouldn’t it be? You work hard for your money.

Jay Conners has more than seventeen years of experience in the banking and Mortgage Industry. He is the owner of http://www.jconners.com, a mortgage marketing and resource site for loan officers. He is also the owner of http://www.callprospect.com, a mortgage lead company, specializing in real time mortgage leads.

Mortgage Leads, Confronting Challenges

2007-08-28T08:48:00.000-04:00

If you are a loan officer or mortgage broker, and you are purchasing mortgage leads from a mortgage lead company, it is important that you get the best return on your investment that you possibly can.

For starters, understand that a mortgage lead provider does just that, they provide you with mortgage leads. It is entirely up to you, the loan officer to close the deal.

When you call potential clients, it is not unlikely to be confronted with some challenges, regardless of where your mortgage leads are coming from.

Here are a few hints for overcoming some of these challenges.

If you call a potential customer and they say that they are no longer interested in a mortgage, it is most likely because they have lost their nerve.

Purchasing or refinancing a home is a very big financial deal, perhaps the biggest financial decision a person will make in their life, so it is understandable if your customer gets cold feet.

Say something to this effect in the nicest tone of voice you have . . .

Oh, I’m very sorry to hear that, after looking at the on-line form you filled out, I was able to fit you into one of our mortgage programs that I am sure you would be interested in hearing about.

If the customer tells you that they are working with another loan officer. They either really are, or again, they may have lost their nerve.

Say something to this effect . . .

I’m really sorry to hear that. We offer some really nice mortgage products and I only wanted to take a minute of your time to go over some of our mortgage programs with you.

Although these approaches will get the customer listening the majority of the time, there are the times when it does not work.

Here are a few other things you can do . . .

Most mortgage lead companies supply you with an e-mail address, so e-mail the customer with some attractive mortgage products and tell them briefly about the benefits of working with you and your mortgage company.

Also, you can mail them out some flyers with some attractive mortgage products that you believe would meet their mortgage needs along with some of your business cards.

Whatever happens on your sales call, do not give up after one objection. If you have not been having success with your mortgage leads, than you need to come up with a new approach.
Remember.

The mortgage lead company can’t do the selling for you. Best of luck with your leads.

Mortgage Lead Companies, Invest wisely

2007-07-03T08:02:00.000-04:00

Investing with a mortgage lead company these days can prove to be tricky for loan officers and mortgage brokers.

With so many mortgage lead companies to chose from these days, how does one go about finding the one that can provide a return on your investment by supplying good quality mortgage leads.
One of the easiest ways to find out if a mortgage lead company can produce good quality mortgage leads is to call your associates in the mortgage business and ask them to refer a company that they have had success with.

This is also a good way to find out which mortgage lead companies to avoid as well.
Once your list of mortgage lead companies has been narrowed down to a short list of the ones you are seriously considering, be sure to take the time to read each of the mortgage lead companies web sites thoroughly.

Concentrate on the terms and conditions, the refund policy, and how they go about generating their mortgage leads.

Where a mortgage lead company generates their mortgage leads should be one of the major keys when it comes to making your final decision.

Look for the mortgage lead companies that generate their mortgage leads through web sites that they own and operate.

A lot can be said about the quality of a mortgage lead when a mortgage lead company can obtain the mortgage leads on their own without using third party vendors and spam campaigns.

Also, look for the mortgage lead companies that allow you to make low minimum deposits to begin buying leads. This is a good way to buy a few of the companies leads so you can test the waters without a whole lot of commitment or going broke in the process.

Before making any kind of financial commitment with a mortgage lead company be sure to pick up the phone and speak with someone in the sales department or customer service.

Ask as many questions about the company and the mortgage leads you feel is appropriate to find a comfort level before depositing.

And remember, if you are not satisfied with answers you receive than it is more than likely that you will not be happy with the mortgage leads.

To sum it all up, take your time and research the mortgage lead companies that you are considering. It will not only save you money but it can make you money also.

Spotting a Good Mortgage Lead Company

2007-06-28T09:33:00.000-04:00

If you are a mortgage broker or loan officer who has purchased mortgage leads from mortgage lead companies in the past, you are probably familiar with the pain of not getting your money’s worth from the mortgage leads you have bought.

If you are still on the market for a mortgage lead company, here are a few tips on how to spot a good one.

For starters, check out their web site and read it thoroughly. Be sure the appearance and content is professional. Also, make sure their terms and conditions along with their return policy is fair and reasonable.

Once you are satisfied with what you have read on their web site, pick up the phone and call someone in customer service or the sales department.

Find out where the mortgage leads come from. This is key to finding good quality mortgage leads.

In order to receive good quality mortgage leads, be sure the mortgage lead company you are considering is obtaining their mortgage leads through web sites that they own and operate.

Stay away from the mortgage lead companies that obtain their mortgage leads through third party venders or spam campaigns or you will undoubtedly end up receiving junk leads or customers who thought they were filling out a survey.

Also, look for the mortgage lead companies that allow for low minimum deposits. This is a good way to test run some of their leads without having to commit to a large investment.

And look for the mortgage lead companies that offer full money back guarantees if not fully satisfied on first time deposits for new customers. The guarantees are usually according to the mortgage lead companies conditions but it is better than nothing, and shows a commitment on the part of the mortgage lead company.

There are good mortgage lead companies out there to work with. It is all a matter of taking your time, doing the research, and finding the one that best fits your needs and budget. Best of luck.

Mortgage Lead Companies with Sub Prime Mortgage Leads

2007-06-27T09:25:00.000-04:00

If you are a loan officer or mortgage broker on the market for sub prime mortgage leads be sure to take your time and choose your mortgage lead company wisely.

One of the most important things you will want to know about the mortgage lead company is how they acquire their mortgage leads.

Why is this important?

The importance of the mortgage leads origin all depends on the type of mortgage lead you are looking for,

If you are looking for inexpensive sub prime mortgage leads that are inexpensive and can be bought in bulk than the history of the lead becomes unimportant because the mortgage lead would not be inexpensive unless it was dated and had been sold multiple times to loan officers and other mortgage lead companies.

The idea behind buying cheap mortgage leads in bulk is to try and get three to five applications per every hundred mortgage leads called.

If you are looking for fresh sub prime mortgage leads of good quality, than where the mortgage lead company acquires their mortgage leads from should be of much importance to you.

Look for the mortgage lead companies that acquire their mortgage leads through web sites that they own and operate. This is one way you can be sure that the mortgage lead you are paying for is legitimate and not purchased from a third-party vendor who has already sold it multiple times.

Also, you will want to be sure that the mortgage lead company is using actual mortgage lead generation sites to acquire their sub prime mortgage leads and not using spam tactics to have people fill out surveys than sell them as mortgage leads.

Another thing you will want to be sure the mortgage lead company is not doing is acquiring mortgage leads by offering free gift cards to home stores to people that fill out the on line applications.

With this type of mortgage lead you will undoubtedly end up with a customer that is more interested in the gift card than they are an actual mortgage.

So when deciding on a mortgage lead company to invest your hard earned money with to purchase good quality sub prime mortgage leads, be sure to pick up the phone and speak with someone in the customer service department of the mortgage lead company and find out exactly how they acquire their mortgage leads.

Mortgage Lead Company, Not an Easy Choice

2007-06-20T08:28:00.000-04:00

Choosing a mortgage lead company that will give you the best return on your investment is a tough choice for any mortgage broker or loan officer.

With thousands of mortgage lead companies out there to choose from, how will you ever know which is the best one for you to build a relationship with? Here are a few tips to find the mortgage lead company you are looking for.

For starters, take your time and do your research. Don’t just browse over the companies web sites, read through them thoroughly before you make a decision.

Once you have read all of the mortgage lead companies important information such as the terms and conditions and the return policy, pick up the phone and speak with someone in sales or customer service.

When you get somebody on the phone, the first thing you should do is find out exactly how the mortgage lead company acquires their leads.

Look for the mortgage lead companies that acquire their mortgage leads on their own through web sites that they own and operate. This says a lot about the quality of the mortgage lead.

Stay away from the mortgage lead companies that obtain their mortgage leads through third party vendors and sell them at a profit to unassuming loan officers.

This is what is known in the industry as recycling, and the last thing you need to be spending your money on are mortgage leads that have already been sold a dozen times.

Also, look for the mortgage lead companies that offer a low minimum deposit to start buying leads. This is a fair way to test run some leads without having to go broke doing it.

When I say low minimum deposit, you shouldn’t have to deposit any more than one hundred dollars on average.

When first investing with a mortgage lead company try to steer clear of the mortgage lead companies that require large minimum deposits and minimum daily or weekly orders.

This way if you do not like the mortgage leads or the service you won’t be out a whole lot of money and you can move onto another lead source in a reasonable amount of time.

To sum it all up, take your time and feel the mortgage lead company out before you make an investment with them. Look for the mortgage lead companies that ask little of you in the way of money and put you in control by allowing you to buy leads when it is convenient for you, and not according to their daily and weekly limits.

This way your hard earned money and valuable time will not have gone to waste.

Mortgage Leads, Avoid the Recycled Junk

2007-06-13T09:14:00.000-04:00

If you are a mortgage broker or loan officer that is considering buying mortgage leads from an internet provider, make sure you do your research and avoid buying recycled junk.

Here are a few things to look for when considering buying internet mortgage leads.

The first thing you want to do is get a sales representative on the phone and find out exactly how the mortgage lead company is acquiring their mortgage leads.

Here is the one and only thing you will want to hear before proceeding any further. You will want to hear that the mortgage lead company acquires their mortgage leads through web sites that they own and operate.

Because if they don’t, than the mortgage leads are being acquired somewhere else by someone else. And most likely those leads are being sold to multiple mortgage lead companies. So by the time you get your hands on the lead it has already been sold to a dozen loan officers before you.

Also, make sure that what you will be receiving is a genuine mortgage lead and not some information based on a survey some customer filled out.

I know from first hand experience what it is like to call a potential customer only to have them tell you that they thought they were filling out a survey.

As you can imagine, I was not happy.

If the mortgage lead company you are considering does acquire their own mortgage leads through their own web sites than you will want to find out how they are driving customers to these sites.

What you will want to hear is that they use advertisements on major search engines to drive traffic to their lead generation sites.

Avoid companies that use bribes to acquire mortgage leads such as offering gift cards to home stores if the customer fills out an on-line application. These customers are more interested in the free gift card than they are the mortgages, so steer clear.

In the end, you work hard for your money, so find the mortgage lead company that acquires their leads on their own through the appropriate channels.

Mortgage Marketing Over the Phone

2007-06-08T10:45:00.000-04:00

For mortgage brokers and loan officers, marketing your products and services can be done in a variety of ways. From business cards to mailers, to face to face meetings.

Perhaps one of the trickiest methods of marketing ourselves and our mortgage products is over the telephone.

The telephone offers many challenges. For starters the potential customer is unable to put a face with your name, which more often than not leads them to draw inferences based on the sound of your voice. This may or may not be a good thing.

Also, these days everybody has caller id and has the option to screen your call should they not be in the mood to discuss mortgages. Many times you can be left hanging with nothing but somebody’s voice mail and never have an opportunity to speak with your customer.

However, voice mail can actually be considered a blessing in disguise. Here is where you have an opportunity to dangle a carrot in front of your customer.

If you just so happen upon a voice mail while cold calling, don’t just leave your name, number, and the company you work for with a hint of disappointment in your voice, be sure to leave them with a reason to call you, make them wonder what you meant behind your message.

Say something like this;

"Good evening Ms. Jones, my name is Jon Smith and I work for XYZ mortgage company. I understand that you are interested in a mortgage. I have looked over your scenario and I believe that I have the right product to meet your needs, so please give me a call back at a time convenient for you. Thank you."

And smile while you are talking, the inflection will come out in your voice.

Another challenge you may face is when a customer tells you that they need to speak to their spouse before making a decision.

Should this happen, ask if their spouse is available now, and if so, ask to speak with them now.
If not, ask if there was anything that you did not explain clearly enough and that you would be happy to go over everything again.

If this doesn’t work, back off and ask if you may call back at a designated time convenient for your customer.

The more you cold call and work the phones the better your mortgage marketing skills will become over the phone. And as long as you know your products and you are prepared to explain them, success will come all the easier for you.

Mortgage Leads, Looking for Quality

2007-06-01T09:55:00.000-04:00

If you are a loan officer or mortgage broker that has used mortgage lead companies in the past, there is a very good chance that you have encountered some bad experiences.

By bad experiences I mean, you have invested money with mortgage lead companies and have received absolutely nothing in the way of a return on your investment.

If you were even lucky enough to make contact with some of the clients, you probably heard things such as "I closed on that loan months ago." Or "I never applied for a mortgage."

Or, one of my personal favorites "oh, I thought I was only filling out a survey."

The next time you consider using a mortgage lead company it is important to take your time and do your homework.

Here are a few things to look for.

Find out exactly where the mortgage lead companies are acquiring their leads from. Are they buying them from third party vendors? Or are they acquiring the mortgage leads through web sites they own and operate?

If the mortgage lead company you are considering is acquiring the mortgage leads from outside companies, this says very little about the mortgage leads.

Who knows how many times that outside company has sold those leads to other mortgage lead companies. You could end up being the tenth person to buy the lead.

Look for the mortgage lead companies that offer low minimum deposits and do not require minimum orders.

Some lead companies have a minimum deposit of five hundred dollars and you must purchase a certain amount of leads per day. If you decide you are not happy after spending one hundred dollars than you are out of luck.

So look for the mortgage lead companies that have low minimum deposits and allow you to spend it at your convenience. This is the best way to test run a mortgage lead company.

And when doing your research on mortgage lead companies take into consideration the customer service that you are receiving. Customer service says a lot about any company not just mortgage lead companies.

If the customer service is poor than most likely the product will be poor as well. When talking to customer service are they forthcoming with the answers to your questions or are you treated as a statistic? Use this to gauge how you will be treated and what kind of response you can expect when requesting a refund.

The bottom line here is to take your time and do you homework when researching lead companies. You work hard for your money so don’t throw it away on mortgage lead companies that can’t provide you with good quality leads even though they claim they can.

Five Mortgage Marketing Concepts

2007-05-29T09:00:00.000-04:00

When working in the mortgage industry it is important to not only market your business and its products, it is important to market yourself as well. Here are a few mortgage marketing concepts to help you achieve that goal.

1. Body Language Speaks Volumes

Your body language can speak volumes. Always smile when it’s appropriate, and speak clearly and slowly so that people will understand you. Eye contact is also very important when talking to people, it lets your client know that you are very confident in what you do, and that you believe in what you are saying.

It is also important to be empathetic when appropriate as well, sometimes it is better to listen than to speak. Not everybody is in the ideal situation, so it is important that you understand where they are coming from, and exactly what they will need.

2. Using Tag Lines

When your answer the phone, make sure you answer it in a professional manner and state your name. You can also add a tag line promoting a product or promotion. Here are a few examples.
Hello, thank you for calling XYZ Mortgage Company, this is John Doe, how may I help you?
Hello, thank you for calling XYZ Mortgage Company, this is John Doe, have you heard about our interest only loans?

3. Build Partnerships

Partner up with a few Realtors in you area, this way you can attend their open houses, this is a great way to make contacts and make people aware of all the programs you have available. Remember to be prepared with plenty of business cards and literature.

4. Product Knowledge

This is perhaps one of the most important marketing tools that you can posses. It is so important to have the ability to be able to speak off the cuff when asked about a particular product. It sends a clear message to the customer that you know what you are talking about, and the better you know the product the more confident you will be.

Remember, your client is considering perhaps the biggest financial decision they will ever make, they need to trust you and believe in you! Take ten minutes out of every day to learn some of the benefits of the programs your company offers. You’ll be surprised at how quickly you become an expert.

5. Show your appreciation

Over the course of the loan process, it is fair to say that you have built a very good relationship with your customer, and like all relationships you want this one to last. Once the loan is closed, take the time to thank them by sending them something to let them know that you appreciate their business.

It could be a thank you card, or a small care package.

My suggestion would be to send them a small care package, preferably to their work place, this way, all of their fellow employees will want to know who sent it and why, this is a great way to get them talking about you, which could easily lead to lots of referrals.

The best part of these marketing concepts is that they can be done on a shoe string budget or they will cost you nothing at all. The name of the game here is to keep yourself and your products in the public eye, so the next time someone needs a mortgage they will be calling on you.

Mortgage Marketing, 5 Tips to Live By

2007-05-17T08:47:00.000-04:00

For those of you working in the mortgage industry it is very important to keep your mortgage marketing activities in your daily activities. Here are a few helpful tips to keep in mind. Some may seem obvious. But please read on, they come with a fresh new outlook and revisiting the basics once in a while never hurt anyone.

1. Business Cards
It is very important to market yourself via business cards. You should be making a conscious effort to hand out ten per day at the very least.

Have them on you at all times, and keep a supply in your car just in case.
When doing business with someone, don’t give them just one business card, give them two, and ask them to refer someone to you.

2. Mailers and Reminders

Keep a tickler file handy on all of your customers birthdays, kids birthdays, and anniversaries. Send them a card to wish them well on their special occasion.

They won’t be expecting it, making them all the more appreciative, it also keeps you in their thoughts, reminding them that they know a mortgage specialist that they can refer should the topic ever arise.

It also gives you a reason to send out more business cards and keep them circulating.
Remember, the average home owner refinances, or purchases on average every three years, so it is important to stay in front of your customer.

3. Phone Numbers

Giving your phone number to your customer seems obvious, but it is equally important to give them your cellular phone number as well as your work number, and let them know that they can feel free to call you at any time, this will personalize the relationship you have with your customer and give them a comfort zone where they feel as though they can really trust you.

4. Become Active

Become active in local organizations and charities, here are a few examples:

Chamber of Commerce
Rotary
Lions Club
Networking Groups
Church
Local Youth Athletic Associations

5. Apparel

Wear your company’s logo, It doesn’t hurt to have a few polos or dress shirts in your wardrobe with your company logo on it for attending special events or just going out to lunch, lets face it, it’s free advertising, and it shows that you take pride in the company that you work for.

To sum it all up, you basically want to keep your name and your face in front of prospective customers. When they need a mortgage product you want them to think of you and you only.

Mortgage Marketing, Concepts for The Future and From the Past

2007-05-02T08:50:00.000-04:00

For both new and experienced loan officers looking to market their business to drum up some mortgage leads, consider a couple of old and new marketing concepts.

It is the twenty first century and it seems as though just about everybody and their brother is blogging. So why not build a mortgage blog just for yourself?

If you are sitting there thinking that you are not that computer literate or you are not a computer programmer, don’t worry, you don’t have to be. Setting up a blog is absolutely free and it is very easy. It only takes about five minutes at the most.

Once your blog is in place, you can post news briefs and short articles about your business and your products. You can also encourage others in the mortgage industry to post mortgage related topics also.

Blogs are great for mortgage marketing because it gives you another tool to work with. You can invite potential customers to visit so they can know more about you, your company, and the products you have to offer.

Be sure to put your picture on your blog. This will help the customers that you will not meet in person be able to put a name with a face. This is great for building relationships and this will give your long distance customers a little bit more of a comfort zone when working with you.

You can also invite friends, family, associates, and referral sources to visit and learn more about your business and products as well.

And don’t forget to put your blog address on your business card.

Speaking of business cards, this has got to be one of the easiest and cost-effective ways to market your business.

There is no reason why you should not be handing out ten business cards a day to potential customers and referral sources.

Business cards should be with you at all times and a separate supply should be kept in the glove box of your car at all times just in case.

Also, always give out two business cards, one for your customer and one for them to give to a friend or family member.

Mortgage Leads, The Right Choice

2007-05-01T12:52:00.000-04:00

For mortgage brokers and loan officers looking for internet mortgage leads, you will find that there is quite a variety to choose from. But which is the best mortgage lead for you?

So take your time, do your research and find the right mortgage lead company for you and your business.

Of the many types of mortgage leads that are out there to buy, the mortgage leads that you will find to have the best quality are the ones that are acquired fresh by the mortgage lead company.

Mortgage lead companies that have the ability to deliver fresh leads are sending mortgage leads to your doorstep that are hot off the press and the customer is basically sitting by the phone waiting on a phone call from a loan officer.

But just don’t take the mortgage lead companies web sites word for it that the mortgage leads are fresh. Pick up the phone and speak with someone in their customer service or sales department.

Ask them how they acquire their leads. The answer you want to receive is that they acquire their mortgage leads through lead generation web sites that they own and operate.

If they acquire them any other way, they will not be fresh and the quality of the mortgage lead will now be in question.

When doing your research, watch out for the mortgage lead companies that acquire their leads through third party vendors and sell them to unassuming loan officers at a profit.

This type of mortgage lead is being recycled and has already been sold to dozens of loan officers before it landed on your desk. So you don’t need me to tell you that the chances of getting an application are slim to none.

In todays market when time is money, set your sites on the mortgage lead companies that deliver fresh mortgage leads because it will lead to a steady stream of applications.

The Right Mortgage Lead for The Right Loan Officer

2007-04-27T08:59:00.000-04:00

If you are a mortgage broker or loan officer on the market for mortgage leads, you must first decide which mortgage lead is best for you.

For starters, you must first determine what your budget is. If it is not very much, you may want to keep an eye out for the mortgage lead companies that have low minimum deposits along with some free extra’s such as filters.

Here are a few different mortgage lead type scenarios.

There is the real time mortgage lead which can be purchased fresh. Typically, these mortgage leads are hot off the press and should be no more than a few hours old when you purchase them.

Also, these types of mortgage leads should be obtained by the mortgage lead company through web sites they own and operate. Otherwise, you may want to question the freshness of the lead.
There are also aged mortgage leads and these types of leads can be purchased in bulk at a discount for as low as pennies per mortgage lead.

However, when buying in bulk, you are playing a numbers game. You should not expect a slam dunk on every mortgage lead.

For instance, if you buy one hundred leads at fifteen cents per lead, you should not expect to take more than three applications from this, but your return on investment will be great!

Basically, the type of mortgage lead you want to buy is up to you as well as the approach you want to take.

But remember, it is important to do your homework and research the mortgage lead company you are considering.

Doing your homework cannot only save you money but it can make you money as well.

Mortgage Leads, Quality Leads to Applications

2007-04-20T11:54:00.000-04:00

If you are a mortgage broker or loan officer looking for internet mortgage leads as a source to pick up some more applications, make sure the mortgage leads you are using are of good quality.

Here are a few tips to help you determine lead quality.

When you are deciding which mortgage lead company you want to do business with, be sure to call the company and speak with someone in customer service.

Find out how they obtain their leads. Too many times mortgage lead providers are obtaining their leads through third party vendors and recycling them at a profit to unassuming loan officers such as yourself.

The mortgage lead companies that can produce the highest quality leads are the ones that obtain their leads through lead generation web sites they own and operate on their own.

So narrow your search to those mortgage lead companies. Chances are, they have the ability to deliver fresh quality mortgage leads.

Also, look for the lead companies that allow for you to view their leads in their entirety before you purchase them. This is also known as cherry picking.

These leads should have all the applicable information on them to get you started including an application date.

The comment section is also very important because many times a client will give a clear indication as to what they are looking for. This can help you in making your decision to buy the lead.

Also, look for the lead companies that ask very little of you in the way of commitment. Such as a low deposit requirement, or without the extra fee’s involved with buying in bulk or setting up filters.

In short, it is very important that you do your homework and educate yourself before you invest with a mortgage lead company. It can save you a lot of money and it can make you a lot of money.

Mortgage Leads, Taking Applications Not Rejections

2007-04-19T15:05:00.000-04:00

For those of you that are mortgage brokers or loan officers you know that cold calling is an essential part of the sales game.

You must also realize that no matter how good you are when it comes to sales, you will undoubtedly experience rejections and challenges over the phone.

Here are a few tips on overcoming some rejections and obtaining more loan applications.
You may be told by the customer that they need to speak with their spouse before they make a decision.

If this happens, ask the customer if their spouse is available, and if they are, ask if you may speak with them now.

If their spouse is not available, ask when they will be and if you can call back at that time.
Some customers may say to you that they are no longer interested.

This is not unusual because when people apply for mortgages on-line, they are usually motivated by emotion. What seemed to be the good thing to do last night, may not seem like a good thing to them in the morning.

So, it is up to you to make them interested again.

When you are faced with this challenge, explain to the customer that you have some products that you believe will fit their needs. Tell them that they are not committed to anything, they only need to sit back for a few minutes and listen while you go over your products.

When you are done, ask the customers permission to send out some literature along with your business card. And, if you may follow up with a phone call in a few days.

This is the beginning of building the relationship with your customer. The more informal contacts you can make with your customer the more comfortable they will become with you.

Unfortunately, not every cold call is a slam dunk, so the more prepared you are for the challenges you will face over the phone, the more successful you will be.

2007-04-18T09:30:00.000-04:00

Mortgage Leads, Real Time, Three Ways to Increase Applications

There are a lot of people in the mortgage business and they will find that the first thing that you need to get is some applications. Many people will want to score at least one mortgage a week. However, there are things that will help you get the approvals, but it takes work.

You are going to spend a lot of time on the phone making calls to everyone who has approached you first, or you will find that there are outgoing calls that you will need to make to some people who fit your profile or that was referred to you. You will find that there are plenty of people to call to get the mortgage applications.

To get the applications, you are first going to want to get prepared. You will want to have everything in front of you at your desk. You will want to make sure that if there were any questions you will find the answers and quickly. You will want to have all of your resources near because you don’t want to put your customer on hold to find what you need, because that just doesn’t cut it.

Secondly, you will need to get comfortable with each and every potential sale. If you have the knowledge, it’ll be a breeze. Also, you have to be 100% business all day long every day. You will find that if you take the time to find an interest in your customer, you will be able to find that you can relax and make the sale. Like if you hear a baby crying or even the dog scratching at the door, you will want to mention it and then say something that will make a bond.

Also, you will want to be quick when it comes to the no’s. You can’t just take the objection sitting down, you will want to justify their worries, but also you will want to jump at the chance to show them that everything is okay. When it comes to things like mortgages, you will find that it’s a huge commitment and it’s going to be something that will need to be done with caution.

When they say things like they have to speak to their spouse, you will want to offer to talk to them about the benefits of the mortgage and if they aren’t available, see if you can make an appointment to talk to them both at another time. They may even say that they have to think about it. All you have to do to respond to them is just ask them if they need any clarification of something and also if they have any questions.

When they say they need to think about it, you don’t want to push it. You will find that you don’t want to get them talking about it more, but you will want to politely show yourself the door and that you will contact them in a few days to talk it over some more or that you will give them a brochure to look over.

Finally, you will find that you will need to look for some internet mortgage leads. You will find that if you take the opportunity to take every lead as a potential sell, your customer should be happy to apply for a mortgage. The lead itself will make it clear that they need to and want to apply for a mortgage. So it’s worth every shot. It isn’t hard to get the applications as soon as you take advantage of the opportunities.

Jay Conners has more than fifteen years of experience in the banking and Mortgage Industry. He is the owner of http://www.jconners.com, a mortgage marketing and resource site, he is also the owner of http://www.callprospect.com, a mortgage lead company, specializing in real time mortgage leads.

Mortgage Lead Sales, Leaving the Right Message

2007-03-15T09:40:00.000-04:00

If you are a loan officer or mortgage broker, you may have been facing one major challenge in the last few years when it comes to calling your mortgage leads.

That major challenge would be the answering machine that you have no choice but to speak to more often than not.

In this day and age everybody has caller identification and voice mail, so it is very easy for people to screen their phone calls if they don’t recognize a phone number or company name that shows up on their caller identification.

I can’t say I blame them. I do the same thing from time to time.

For starters, any time you are calling a customer to sell them a mortgage you need to be prepared with details of certain products you have to offer that you believe will fit your customer’s needs.

You also need to be prepared just in case the answering machine kicks in, and undoubtedly it will.

If you must leave a message the last thing you want to do is allow for the disappointment of not getting a live person to show up in the inflection of your voice.

Just leaving your name, the company you work for, and a telephone number will never work. This type of message will be deleted nine times out of ten.

What you want to do is this . . .

Be upbeat, smile, it will show up in your voice. Not only give them your name and company details, let them know that you have already researched some company products that you believe will meet their needs and that you have some rates that you believe they would be interested in.

Let them know the importance and urgency of calling you back. You want to peak their interest, make them curious about what it is you have to offer and I guarantee that they will call you back.

Please understand, the idea is not to leave a long drawn out message that will bore your customer to the point of deleting your message.

The idea is to keep it short and simple, get to the point but make sure you get your message across in clear and easy to understand terms. Avoid mortgage jargon.

So the next time you are making sales calls be sure to keep this in mind. Leaving the right message is a very important part of today’s phone sales.

If you incorporate this simple step into your phone sales, I can guarantee an increase in your applications.

Mortgage Leads, Tips for Closing More Loans

2007-03-08T15:40:00.000-05:00

If you are a mortgage broker or loan officer considering purchasing mortgage leads or you are already buying them, here are a few tips to help you close more deals.

For starters, look for quality not quantity. By quality I mean, seek out the mortgage lead companies that sell their leads fresh or in real time.

The best way to determine wether or not the lead company you are considering has fresh real time leads is to give them a call and find out exactly how they obtain their leads.

Consider the mortgage lead companies that obtain their leads through web sites that they own and operate on their own. This is always a good indication that the quality of the lead is good.
Steer clear of the lead companies that obtain their leads through third party vendors and resell them at a profit.

This is what is known in the industry as recycling and you will never know how many loan officers desks the lead landed on before it landed on yours.

We all know the pain of having a customer tell us they submitted their on line application months ago, or that they have already closed their loan.

You work hard for your money so look for the lead companies that sell fresh quality leads that they obtain on their own.

Also, if you are not having any luck contacting your customer, and you only have the ability to speak to an answering machine, be sure to leave a short detailed message that will invoke the customer to call you back.

If you get an answering machine and leave only your name and the company that you work for, your message will have a good chance of being deleted.

If you leave a message including your name, company, and the products you have to offer letting them know the importance and urgency of calling you back, than chances are they will call you back.

This is equally important because most if not all mortgage lead companies sell their non exclusive leads up to five times.

If you are buying your lead’s non exclusively, chances are you will experience some kind of competition, so the message you leave is very important.

Sub Prime Internet Mortgage Leads

2007-02-08T11:31:00.000-05:00

If you are a loan officer or mortgage broker looking for sub prime internet mortgage leads. Look for a lead provider that allows for you to view the lead before you buy it.

Also, look for lead providers that gather information that is important to loan officers looking for sub prime leads. For example, when working with sub prime customers, you want to have leads that offer a comment section so that you can get a good idea of what the customers needs are and you can than base your decision to buy the lead based on this information.

Lets say you call a prospect and they tell you that the bank has already begun the foreclosure process. Chances are, this is a dead lead for you.

Now, if you have the opportunity to view the lead before you purchase it and you can see what comments the prospect has made on the lead and they stated that they were heading into foreclosure, you probably never would have bought the lead to begin with if you did not specialize in foreclosures.

Take the time to research the internet lead providers that are out there. There are many, so take your time.

Here are a few things you can look for.

Where does the internet provider obtain their leads from?

Make sure the lead company that you are considering obtain their own leads. By this I mean, make sure they obtain them through lead generation web sites they own and operate on their own.

Steer clear of the mortgage lead companies that are recycling their leads or are purchasing their leads from third party vendors than selling them to loan officers at a profit.

You don’t want to call a customer and have them tell you that you are the tenth person to call them this week.

Also, make sure you speak with someone in customer service. It is always good to know that there is someone to speak with in the event you need some assistance or you are looking for a refund on a bad lead.

And remember, the type of customer service you are provided with should be a clear-cut indication of the quality of the leads you receive.

If the customer service stinks, than most likely the leads will also.

Mortgage Leads, View Before You Buy

2007-02-07T12:23:00.000-05:00

If you are a loan officer or mortgage broker looking to purchase internet mortgage leads, you may want to start out with the lead companies that allow for you to view the leads before you make the decision to buy them.

Otherwise known as cherry picking leads, you have the option of looking at all of the details of the lead before you make the purchase. I don’t think it gets any more fair than that.

At least this way you know exactly what you will be getting.

The next step would be finding the right mortgage lead company to invest with.

At the very least, you want to ensure that the leads you are spending your hard earned money on are fresh and of good quality.

Avoid lead companies that recycle their leads or purchase them from 3rd party vendors and sell them to loan officers like yourself at a profit.

Look for the lead companies that generate their own leads through web sites they own and operate on their own.

In order to find lead companies such as theses it is important to take your time and do your homework.

Once you find a mortgage lead company you believe to be a fit, call and speak with someone in their customer service or sales department. Ask many questions on the subject of how they obtain their leads.

If you are not happy with the answers you receive or the service provided than move on. More than likely if you are not happy after your phone call, you will not be happy with any of the leads they provide you with.

Also, be sure to check out their return policy. Make sure that it is fair and reasonable.

Remember, you work hard for your money, so make sure that you will be getting what you paid for.

Sub Prime in Real Time

2007-01-05T10:55:00.000-05:00

If you are a loan officer or mortgage broker looking to purchase mortgage leads by way of the internet, you should seriously take sub prime internet leads into consideration.

It is sad to say, but people with poor credit do not have the luxury of walking into their local bank and obtaining a mortgage. As we all know, banks primarily deal with customers who have perfect credit. And if the customer is fortunate enough, they will be referred to an outside company where sub prime loans are originated.

Because sub prime customers can not depend on their local financial institutions for mortgages, they will turn to the internet in search of a loan officer such as yourself who works with wholesale lenders in the hope of getting a mortgage or their current home refinanced.

If you are not already working with sub prime customers, you should look into doing so and align yourself with the wholesale lenders who work with poor credit and get to know their products well.

As far as the lead companies you decide to invest with are concerned, look for the ones that obtain and sell their leads in real time. With this type of lead you will be dealing with customers who are anxiously awaiting your phone call.

Steer clear of the lead companies that sell dated or recycled leads. I’m sure you are familiar with the frustration of being hung up on, or being told by the customer that they already closed on their deal.

When looking for real time lead companies, be sure to do your research. Call and ask to speak with someone in the customer service department. And remember, if the service and information are not to your liking, than move on because you can guarantee that the leads will not be to your liking either.

Making the Most with Your Sub Prime Leads

2007-01-04T09:25:00.000-05:00

Although sub prime leads are one of the more popular forms of internet mortgage leads, they can at times be a tough deal to close. Especially if the customer is in foreclosure or has a credit score hovering around 500.

Now that the new year is upon us, you may want to consider as one of your new years resolutions to make yourself somewhat of an authority on sub prime.

Or at least make the effort to build relationships with the wholesale lenders who specialize in poor credit, foreclosures and bankruptcy buy outs.

Once you accomplish this, you will no longer have to feel the pain of being helpless when a potential customer tells you they have a score less than 500 or they are in foreclosure.

There are wholesale lenders out there that can help these people, so it would be in your best interest and that of your bank account to get to know the sales rep’s and the products and programs they have to offer.

Customers with challenged credit or that are in unique financial situations do not have the luxury of walking into their local bank and getting a mortgage.

So where do they turn?

To the internet of course. Every day, more and more customers are turning to the internet for help with their largest financial investment, their home.

This is where you come in, so make sure that you are in a knowledgeable position to capitalize on these internet leads.

When looking for sub prime leads, make sure you find a mortgage lead company that sells their leads in real time. This way the customer will be waiting on your call.

Avoid the mortgage lead companies that recycle leads or buy them off of third party vendors and sell them to you at a profit.

Remember, you work hard for your money, so make sure you get what you pay for.

Fixed Rate vs. Variable Rate

2006-11-03T10:22:00.000-05:00

When applying for a mortgage, the most important thing to you, the consumer, is the rate. Obviously, you want the best rate you can possibly get, for this alone can save you a ton of cash in the long run.

Two types of rates you will be presented with to consider are the fixed rate and the variable rate.

The fixed rate is a rate set in stone, it never moves up or down for the life of the loan, the only way it can change is if you decide to refinance. To put it simply, if you have a thirty-year term with a fixed rate, your rate will be the same for the entire thirty years.

With a fixed rate there will be no surprises, that rate will stay the same, so you can sleep easier at night knowing that there is no uncertainty when it comes to your monthly mortgage payment.

The only way there will be a fluctuation in your mortgage payment would be if and when your taxes increase. But this happens on an annual basis. (See articles about taxes, insurance, and escrow.)

A variable rate is a rate that fluctuates with the prime rate, and can go up or down, depending on what the prime rate does.(the variable rate is most common in Home Equity Credit Lines).

Lets say you have a variable rate at prime plus one. If the prime rate is at four, than your interest rate will be at 5% (prime plus one).

Now if the prime rate goes up to four and one half, than your rate will go up as well, resulting in an interest rate of 5.5%.

On the other hand, if the prime rate goes down to 3.5%, than your rate will go down as well, resulting in a rate of 4.5%.

The variable rate is more of a risk than a fixed rate, but it can work in your favor if the prime rate goes down, however it can also work against you if the prime rate goes up. So always keep an eye on the market and make your decisions based on your research.

When considering taking an ARM, make sure you will be able to afford the payment if the interest rate goes up.

Prepayment Penalty

2006-11-02T10:51:00.000-05:00

A prepayment penalty is the penalty the lender charges you for paying off your loan early. The penalty is normally 3% of the amount of the loan, and sometimes higher depending on the lender or the state. Prepayment penalties are also charged in the form of six months worth of interest.

The prepayment penalty time frame is usually up to three years.

Most people don’t plan on selling their homes within that three-year time frame, or have the cash sitting around to just go ahead and pay it off, so this may not seem like an issue at first glance.

However, this is a problem if you want to refinance for a lower rate and payment.

When signing your loan disclosures the lender sends you, make sure you scrutinize the promissory note. This is the form that makes you aware of any pre-payment penalty clause in your loan. If your lender has told you there is one, than the promissory note will explain the details. However, if you have been told there will not be one, make sure it states this, and states it matter of factly before you sign the loan documents at closing. You wouldn’t want a pre-payment penalty finding it’s way into your mortgage based on a frivolous clause that was not explained to you.

Keep in mind. Prepayment penalties are not permitted on FHA, VA, and FMHA mortgages.

Some states have passed laws from prohibiting lenders from imposing prepayment penalties on their customers. The lenders, in turn, decided to charge higher rates. Go figure!

Loan To Value

2006-11-01T12:09:00.000-05:00

One term you will generally be hearing a lot during your quest for a mortgage will be loan to value, or simply put, LTV.

Loan to value is the amount of the loan you want, divided by the value of your home.

Many things are determining factors when it comes to assessing the value of your home. For instance, the amount of bedrooms and bathrooms, is there a garage and a driveway, is the garage attached or de-tached, is there central air, have any additions been added, has there been any home improvements made recently, etc. etc.

Most people have a pretty good idea what the value of there home is based on what houses in there neighborhood have recently sold for.

Here is a scenario to give you an idea of how it works.

Lets suppose you want to refinance your home in order to get a lower interest rate.

The amount you owe on your current mortgage is $125,000.00, and the appraised value of your home is an estimated $155,000.00.

$125,000.00 divided by $155,000.00 equals 81%. Your loan to value would be 81%

The lower the loan to value on your home, the better off you are, because for starters, you have built a lot of equity in your home which can be drawn upon with a home equity loan, and if not, you are working towards a nice nest egg for your retirement.

A low loan to value plays a determining factor in your interest rate as well. From some lenders point of view, the lower the LTV, the less risk for them, and they generally will reward you with a lower rate.

In order to have the value of your home determined and recorded, you would need to have an appraiser come out and evaluate it. Your lender normally will handle setting this up, however, most appraisers require payment at your doorstep. Look for our articles on Appraisals for more information.

Points on Your Loan

2006-10-31T10:49:00.000-05:00

The amount of points you are being charged on your loan, is basically the amount of fees’ that you are paying the lender for doing the loan for you.

If you look carefully at your Good Faith Estimate (GFE), that the lender is required to send you, look closely for the line that says loan origination agreement, this is the technical term for points.

Each point you are paying on your loan, is 1% of the total amount of the loan. (One percentage point).

Lets suppose you are getting a loan for $150,000.00 and the lender is charging you two points, the total loan origination fee would be $3000.00.

Keep in mind that nobody works for free, but the loan origination fee is negotiable, so work with the lender or broker to pay as little points as possible.

Another thing to keep in mind if you are looking for a mortgage without points, is that the lender will hit you in other ways, for instance, charging you a higher interest rate. It bears repeating. Nobody works for free.

I have often had people tell me that they got a great rate on a mortgage with no points, I normally smile and congratulate them. However, I’m not here to sugar coat the mortgage industry, be prepared to pay fees in one way or the other. It just comes with the territory.

Marketing Through Article Submission

2006-10-30T10:20:00.000-05:00

If you are the owner of an internet business and you are looking for a way to market your products and services for free, than you may want to look into article submission.

The best part about article submission is, you don’t need to be a Steinbeck or Hemingway to write and submit articles.

Basically, all you need to do is describe the products and services you have to offer and put them in the form of an article, say four or five paragraphs.

At the end of the article, you can post a short biography of yourself with your web sites URL attached.

Once you get into article submission, you will come across a lot of advertisements for article submission software, but there is no need for this.

The internet is loaded with links to article submission sites for you to submit your articles.

The most important thing when it comes to article submission is having your web site’s URL in your biography so potential customers can link to your web site.

Most article submission sites will make your link active once posted, giving easy access to your site for anyone that reads your article than wants to visit your site.

You can also leave your name, number, and e-mail address as an alternative for people to contact you.

Believe me. Article submission is a free and effective way to market your internet business.

Private Mortgage Insurance

2006-10-27T11:53:00.000-04:00

Private mortgage insurance, also known as PMI, is the money you pay on a monthly basis, to a private mortgage insurance company. You must pay these insurance companies because they want to be covered in case of a foreclosure or default on your loan due to nonpayment.

It is logical to ask yourself the question, why can’t they just sell the house and pay the debt. Believe me, they will. However the time and fee’s involved usually runs higher than the mortgage itself, not to mention the people they must pay to do the work for them.

There are loans out there that do not require PMI, the most popular ones being the one’s backed by the United States government, such as FHA, and VA to name a few.

The majority of mortgage programs out there do not fall under government programs, so if you don’t fall into one of their categories, you will have to go with a conventional mortgage, and you will have to pay PMI.

When you go with a conventional loan, the mortgage company protects their interest by using private insurance companies, hence the term private mortgage insurance.

There is a way to avoid paying PMI, and that would be to put down 20%. But lets face it, how many of us can afford to do that. Twenty percent down is the what the mortgage companies believe will protect their investment in the result of a foreclosure.

Private Mortgage Insurance is just another fact in the life of owning a home. But please continue to do your research, there are non-government programs out there such as an 80/20 loan, and the 80/10/10 loan.

Slow Economy Forces Fed to leave rate As Is.

2006-10-26T14:54:00.000-04:00

For the third time in a row, the Fed has kept the interest rate unchanged in the hopes that a slowing economy will distinguish any growing fears of a rise in inflation.

The federal funds rate remains at 5.25% and has remained at that level since June 2006.

Financial analysts were not expecting a change believing the Fed did not want to affect the market with the upcoming November elections.

What Is a Credit Score?

2006-10-26T10:10:00.000-04:00

The most notable and widely known credit score is called the FICO score. FICO is an acronym for Fair Isaac Company. Fair Isaac is the company who came up with the formula for the score.

The higher the FICO score, the better the chance are that a borrower will make their payments on time.

FICO scores range from 350 to 850. The minimum score to qualify for the lowest rate would be 740. This does vary from lender to lender, and is dependant upon all of the information provided by the borrower to the lender.

Credit scores have done wonders for speeding up the loan decisioning process. The only down side to the credit reports and fico scores is the possibility of an error. For instance, if someone with a similar name has one of their accounts show up on your credit report, this can and will affect your credit score. Errors on credit reports are not at all uncommon.

Will Time Improve My Credit Report?

The Federal Fair Credit Reporting Act sets limits on how long derogatory information can appear on your credit report. Once a record has been on an individuals credit report for the subscribed period of time, it is, by law, supposed to drop off.

Before negative information drops off of your credit report, it will continue to have a negative impact on your score. This is why it is important for borrowers to establish new credit where the outcome will have a positive impact on their report. This will help your credit score begin to rise. By letting your derogatory accounts sit around on your credit report without establishing new and active credit accounts you are only hurting your score.

Do Credit Inquiries Hurt Your Credit Score?

Credit inquiries will hurt your credit score because it has been found that multiple inquiries are a red
flag when it comes to a high risk of default.

However, multiple inquiries can happen as a result of someone shopping around for the best deal. Credit scorers do take this into consideration. Credit scorers do not pay attention to auto and mortgage inquiries that happen within thirty days of the scoring date.

Also, to avoid hurting the borrower’s score from any earlier shopping that the consumer may have done, the credit scorers will treat all auto and mortgage inquiries that occur within a fourteen-day period as one single inquiry.

The only inquiries that affect your credit score are those by new credit grantors to whom you have given authorization to do so.

Don’t Let Bad Credit Stop You

2006-10-25T09:55:00.000-04:00

When I worked as a loan officer, it wasn’t unusual for me to come across people who thought they were out of luck because they had bad credit.

This is really not the case, although it is fair to say that you would not be able to walk down to your local bank, have a seat in the branch manager’s office and walk out with a mortgage.

However, there are alternatives, and you do have choices.

If you contact a broker, tell them your situation, be completely honest and up front with them, otherwise you are just wasting their time as well as your own, and believe me, whatever your situation may be, they have heard worse. Nine times out of ten they will be able to help you.

Conventional banks are not the only ones that lend money. Brokers have access too literally hundreds of banks with a wide variety of programs for people in unique situations from foreclosure buy outs, to 100% financing with poor credit scores.

I speak from experience, because when I was a loan officer I did mortgages for people in unique situations.

Foreclosure buy outs, bankruptcy, late payments on prior mortgages, the list goes on.

I would sit down with my customer, take down as much information as possible, than present their information to many different lenders for them to review. Most times I would find one with a program to help my customer.

Keep in mind, with unique situations, there is risk involved on the part of the bank, so you can’t expect to get the best rate in the world. But if it is reasonable, and can put you into the situation you want to be in, than it is well worth it.

So if you think your credit, or a bad situation is preventing you from getting a loan, think again, there is probably a program out there for you, you have nothing too loose.

Payments Toward Principal

2006-10-23T11:02:00.000-04:00

If your budget allows for you to make extra payments toward the principal of your loan, than it is highly encouraged to do so.

By paying anywhere from $50 to $100 on a monthly basis, you can reduce the term of your loan significantly.

Not only will you be shortening the term, you will literally be saving thousands of dollars in interest charges.

The Current Mortgage Rate

2006-10-19T10:06:00.000-04:00

So you are looking to purchase a home or refinance the one you are currently living in. If this is the case, not only do you want to obtain the best mortgage rate out there, you want to obtain the current mortgage rate and not a percentage point higher.

Before you begin to track down a lender who can get you going with a current mortgage rate, take some time to do a little research to find out what the current mortgage rate is on your own. Don’t just take the lenders word for it.

You can find out information on the current mortgage rate, and rates in general from many resources. To name a few, the internet or the business section of your local newspaper is a good place to start and will give you a very good idea of what rates are doing.

The current mortgage rate can be easily obtained if you have excellent credit, or what lenders call “A” credit.

However, if your credit is challenged in any way, you will still be able to get a mortgage. Except the rate you receive may not be the current mortgage rate, but a little bit higher because the lender sees you as a slight risk because of your payment history.

Wether you have excellent credit or challenged credit, or you need someone to help you out with a unique situation, shop around.

By shopping around, you allow for a few to several mortgage brokers or loan officers to assess your situation.

Once each loan officer is finished assessing your situation, they will get back to you with what they have to offer rate wise.

Once you have a number of offers, base your decision on what you believe to be the best loan scenario for you.

Remember, the mortgage industry is a very competitive one, and these lenders do not want you to take your business to their competitor, so they will do their best to get you the best deal out there.

Loan officers and mortgage brokers also get paid on commission, so getting the mortgage to the closing table is just as important to them as it is to you.

What Is a Credit Score?

2006-10-18T11:11:00.000-04:00

Rate Lock

2006-10-17T11:05:00.000-04:00

A rate lock is to put a hold on your rate. Most lenders will lock a rate for up to 30, 45, or 60 day periods, depending upon the situation.

The benefit of locking your rate is receiving peace of mind. If interest rates go up during your grace period, you can rest assured that your locked rate will stay the same.

Once you have chosen a lender and a mortgage product that you are happy with, go ahead and have the rate locked. Once this is done, be sure to obtain a written agreement of the terms. A verbal agreement is exactly that, so make sure you have the paperwork to back it up.

Real Estate Settlement Procedures Act (RESPA)

2006-10-16T10:28:00.000-04:00

Real Estate Settlement Procedures Act (RESPA)

RESPA is about closing costs and settlement procedures. RESPA requires that consumers receive disclosures at various times within the transacation process. It also outlaws kick backs that increase the cost of settlement services. RESPA is a HUD consumer protection statute designed to help homebuyers be better shoppers in the home buying process, and is also is enforced by HUD.

Debt to Income Ratio

2006-10-13T15:44:00.000-04:00

When applying for a mortgage, one of the very first things a lender will look at is your debt to income ratio.

What is the debt to income ratio, and how does it work?

Your debt to income ratio is the amount of money you owe to creditors per month, divided by the amount of money you make per month (including your projected monthly mtg. payment).

So, if you make a gross monthly income of $3500.00, and your monthly bills run you around $1350.00 per month (including projected monthly mtg. payment), than your debt to income would be 39%.

A 39% debt to income ratio is not too bad. Most traditional banks allow up to 40%. There are banks out there that will allow as high as 55% and possibly higher, although I have never come across one.

Even though you may pay your bills on time every month and have rock solid credit, it is very safe to say that a lender will turn you down if your debt to income is above their requirements, so be prepared to pay off some debt in order to get your credit down.

If the lender requires that you have a debt to income ratio of 45%, and your DTI ia 45.8%, the lender at times will make an exception for you based on credit, and payment history.

During my experience over the years, when a debt to income ratio was this tight, it usually wasn’t that hard to resolve. However it will take some negotiating skill on the part of your loan officer, or broker.

Home Inspection

2006-10-12T16:45:00.000-04:00

One of the most important things you can have done before the purchase of your home is to have it inspected by a qualified home inspector. In fact, most lenders will not lend money until the inspection is completed.

Home inspections are important because an inspector can pick up on things that are not visible to the naked eye.

They will check that the foundation is in tact, and make sure that all electric and plumbing fixtures are in safe and correct working order.

They will also check for any and all safety features that may not be in accordance with local safety ordinances.

A home inspection is highly encouraged, regardless if your lender requires it or not. The last thing you want is to move into your new home only to find out you have to shell out thousands of dollars because your ceiling begins to sag due to a faulty foundation.

Home inspections typically run anywhere from $300.00 to $400.00. This may vary depending on where you live and the size of your home.

What is the Mortgage Term?

2006-10-09T10:03:00.000-04:00

The term of the mortgage is the period of time the lender uses to determine what the mortgage payment will be. It is not to be confused with maturity, which is the period until the final payment is due.

For most mortgages the term and maturity are the same, but on some, the maturity is shorter. The balloon mortgage would be a good example of this.

Does the Length of the Term Effect My Mortgage Payment?

Yes, the longer your term, the lower your monthly mortgage payment will be. However the amount of equity you acquire in your home will build at a slower rate.

As the term gets longer, the less effective the reduced payment becomes.

For example, the difference in payment from a ten-year term to a twenty-year term can be substantial. However, going from a thirty-year term to a forty-year term, you will find the difference in payment to be not so substantial.

How do I decide which term is best for me?

When applying for a mortgage, you will need to decide what term to go with, most mortgages are based on a fifteen or thirty year term. Twenty and forty year terms are out there, but you will have to do some digging to find them.

Very few people that I have come across through my years working as a loan officer went with a fifteen year term, the main reason being, the monthly payment. A fifteen year term would literally double their monthly mortgage payment.

The benefit of going with a fifteen year term is that you would save a ton of cash on the interest charges.

It makes perfect sense, instead of paying interest for thirty years, you would only have to pay it for fifteen.

Even when I came across people that could afford a payment on a term of fifteen years, they still opted to go with a thirty year term. The reason being would be one of the advantages a thirty year has over the fifteen year.

The payment on a thirty year term is lower than that of the fifteen. By putting less money towards your mortgage on a monthly basis, you will have extra money to put toward the other things that require your financial attention such as retirement plans, and school tuition.

Keep in mind, lenders do not penalize you for putting extra money toward your principal on a monthly basis. It is estimated that an extra twenty-five to fifty dollars can have a thirty-year mortgage paid off almost ten years early.

Appraisal

2006-10-07T10:32:00.000-04:00

Before a lender will lend you the money for a home, they will first require an appraisal to be done by a qualified licensed appraiser.

An appraiser will go out to the subject property and do an inspection of the inside and outside of the property and take pictures as well as measurements to determine square footage.

Once completed, the appraiser will complete a written report of approximately twelve to eighteen pages.

The appraisal will include an assessment of the value of the home based on an opinion of fair market value.

Comparable sales within your neighborhood during the last twelve months are also used to determine fair market value.

Appraisers prefer to be paid at the door. However, some are willing to be paid at closing.

Private Mortgage Insurance

2006-10-06T10:04:00.000-04:00

Blogging for Mortgage Leads

2006-10-05T08:55:00.000-04:00

For loan officers and mortgage brokers everywhere, obtaining leads to close more loans is at the top of our list of priorities.

For we all know, if we don’t close loans, we don’t eat.

There are many productive ways to obtain leads. Customer referrals, networking groups, marketing campaigns, mortgage lead companies, etc.

But now that we are in the 21st century, a new method of marketing is on the horizon, and it is known as blogging.

Blogs have become more than just sites for gathering the latest news on a particular subject.

A blog can be used to market yourself and your product. In fact, I have been using a blog to market my product for over a year now.

The best part of blogging is, you don’t have to be a rocket scientist or computer genius to have a blog.

Just find a blogging service on the web, pick a name for your blog, as well as a template, than begin posting your information.

What kind of information? You may ask.

Information such as the products and services you have to offer and a short biography of yourself as well as a picture.

Once your blog is set up, which takes five minutes by the way, you can begin to refer people to it immediately.

You can also put it on your business card, and under your name and address on the e-mails you send.

When talking to a potential customer, end your conversations by encouraging the person your speaking with to visit your blog.

Blogs are a new and innovative way to market yourself, your products, and your services. And, its fun, so give it a shot.

Tax Write Off

2006-10-04T09:12:00.000-04:00

Perhaps one of the best things about owning a home is the tax benefit.

When it comes time for you to file your annual tax return, the IRS will allow you to deduct the interest you paid toward your mortgage as well as the property tax you paid. But only within certain limits.

You are allowed by the IRS to deduct up to one million dollars of mortgage debt as well as all of your property taxes. The mortgage debt covers both primary and secondary mortgages.

The IRS also allows for you to deduct all interest paid on Home Equity Loans and Home Equity Credit Lines.

Principal, Interest, and Term

2006-10-03T10:14:00.000-04:00

Principal

The principal of your mortgage is the amount you owe on the money you have borrowed from a lender.

Interest

The interest is what the lenders charge you to borrow their money. The interest adds up over time and is reflected in the form of an interest rate.

Keep in mind, the interest you pay on your mortgage is tax deductible.

Term

The term is the amount of time the lender allows you to pay back the money you borrowed.

Keep in mind, large loans obviously have long terms, while smaller loans have shorter terms.

Property Tax

2006-10-02T09:26:00.000-04:00

As the saying goes, there are two things you can’t avoid, death and taxes. Well the same holds true for home ownership.

Property taxes are typically based upon the value of the home.

While shopping for a home, you will notice the amount of taxes the current resident is paying on the paperwork that gives a description of the loan. This dollar amount will most likely be based on the amount they paid for the home, so be sure to have your realtor find out what the exact amount may be.

Your taxes can be paid in one of two ways. The most efficient way would be to have them escrowed. Escrow means that your taxes and insurance are paid as part of your monthly mortgage payment. Your lender will than distribute the money owed to the appropriate parties.

The other option available to you would be to pay them on your own on a quarterly basis. If this happens to be the option you decide to go with, make sure you are financially prepared when the time comes to make that payment.

Truth in Lending

2006-09-30T10:55:00.000-04:00

Truth in Lending is a federal law requiring lenders to fully disclose in writing the terms and conditions of a mortgage, including the Annual Percentage Rate and other charges.

Origination Fee’s

2006-09-29T09:28:00.000-04:00

Basically, origination fees’ are the exact same thing as points. They are a percentage of the loan.

By showing fee’s as origination fee’s, lenders can actually lower the point total they charge you, while inflating the amount of origination fees’ they charge you.

When dealing with a lender, make sure to ask what the total amount of fees are that are derived from a percentage of the total loan amount.

Reverse Mortgage

2006-09-28T09:40:00.000-04:00

A reverse mortgage is a mortgage against your home that you are not required to pay back as long as you are living there.

With a regular mortgage, you borrow money from a lender and pay that lender back on a monthly basis. As you pay your lender back on a monthly basis, your debt begins to decrease.

The exact opposite happens with a reverse mortgage, hence the term “reverse mortgage.”

With a reverse mortgage, a lender pays you on a monthly basis. Of course you must have enough equity in your home for this to occur.

The monthly payment from the lender to the borrower is determined on the value of the home over a thirty or twenty-year term, the same way a regular mortgage would be.

The majority of people who apply for and obtain reverse mortgages are older people who have lived in their homes for many years who have acquired enough equity to make it worth their while. Using the money to supplement their retirement income.

When it comes time to pay back the loan, the equity from the sale, or refinance of the home is used to pay the lender.

The reverse mortgage is not a very popular one today because it is still relatively new to the market and there is still a lot of misunderstanding about them.

As pointed out earlier, the majority of people with reverse mortgages are retired seniors with low to moderate income who need to use the equity of their homes to survive.

My own personal opinion is that reverse mortgages will grow in popularity as people continue to live longer.

Department of Housing and Urban Development (HUD)

2006-09-27T09:29:00.000-04:00

HUD’s mission is to increase home ownership, support community development and increase access too affordable housing free from discrimination.

HUD embraces high standards of ethics, management and accountability, and forges new partnerships. Particularly with faith based and community organizations. These partnerships enable HUD to improve their ability to be more effective on the community level.

Equal Credit Opportunity Act

2006-09-26T09:30:00.000-04:00

The Equal Credit Opportunity Act (ECOA) ensures that all consumers are given an equal chance to obtain credit. This does not mean that all consumers who apply for credit will receive it. Factors such as income, expenses, debt, and credit history are considerations for credit history.

The law protects you when you deal with any creditor who regularly extends credit. Including banks, small loan and finance companies, retail and department stores, credit card companies, and credit unions. Anyone involved in granting credit, such as real estate brokers who arrange financing, is covered by law. Business’ also applying for credit are covered by this law.

Credit Report

2006-09-25T10:13:00.000-04:00

A credit report is a report from a credit bureau containing detailed information about your credit history.

The credit report is the determining factor all lenders and creditors use when deciding your credit worthiness and ability to repay your debt.

A credit report includes the following information:

Personal Information

The personal information is used to identify the individual by their current address, passed address, and social security number. The personal information is used to distinguish the borrower from everybody else.

Public Records

Public records includes liens, foreclosures, bankruptcies, lawsuits and judgements.

Collection Agencies

A collection of past due debts that have been given to credit agencies to collect.

Creditor Information

This will include the identity of the creditor, the date the relationship began, the current status of each account including the outstanding balance, the maximum line amount if any, and the current status of passed delinquencies.

Inquiries

This identifies companies which have requested a consumers file within the last two years.

There are three major companies of credit reporting. Equifax, Experian, and Transunion. The information provided by these three companies is not exactly the same because not all creditors report to the same three.

Assumption, Assuming a Mortgage

2006-09-23T08:32:00.000-04:00

An assumption is the agreement between the buyer and the seller where the buyer takes over the payments on an existing mortgage from the seller. Assuming a mortgage can usually save the buyer money since this is an existing mortgage debt, unlike a new mortgage where closing costs and new, probably higher, market rate interest charges will apply.

This type of mortgage scenario might just be a nice fit for someone who is looking to save money on closing costs and assume a low interest rate.

Another benefit associated with assuming a mortgage is that a portion of the mortgage has already been paid by the seller. Also, there is little doubt that the house has appreciated since the seller purchased the house, so the mortgage you assume will be less than the actual value of the home.

The assumption of a mortgage loan can be tricky, and is not without all of the paper work that accompanies traditional mortgages. So be sure to consult the appropriate parties such as a real estate lawyer or realtor to help point you in the right direction.

Without a doubt, the number one benefit to an assumption is the money saved in closing costs. So if this sounds like a fit to you, than it is definitely worth the time you take to research it.

Agreement of Sale

2006-09-22T09:58:00.000-04:00

When the time comes for you to purchase your new home, both you and the seller will have to come to an agreement.

The major component of the sale that both you and the seller will have to agree on is the purchase price. On a smaller scale, you both must come to an agreement on the down payment, what stays and what goes, and any minor work the property may need, etc.

Once you and the seller have come to an agreement, you will both be required to sign the agreement of sale which is provided to you by your realtor. Your realtor, who acts as your advocate will go over all of the stipulations with you before you sign the actual paper work.

Once the agreement of sale is signed, you can than move on to following through with all of the other necessary conditions required to purchase your new home.

An agreement of sale is defined as follows:

A written signed agreement between the seller and the buyer in which the buyer agrees to purchase certain real estate and the seller agrees to sell upon terms of the agreement. Also known as contract of purchase, purchase agreement, offer and acceptance, earnest money contract or sales agreement.

Abstract of Title

2006-09-21T09:09:00.000-04:00

A summary provided by a title insurance company of public records affecting the title to a property. An attorney or a title company will review an abstract of title to determine if there are any problems affecting the title to the property. All such problems must be cleared before the buyer can be issued a clear and insurable title.

Such problems may consist of unpaid taxes on the property by the current owner or the previous owner. Also, judgements and liens are known to show up on the title as well, from loans that went into default where the property was being used as collateral.

If there are any such issues, they are normally cleared by the title company, that is why you pay them a nice chunk of change at the settlement table.

The majority of issues that show up on title usually have been cleared, but the appropriate paperwork was not handled correctly to remove the issues from the title.

Abstract of title also protects you from anything from the past that may sneak up on you. Such as a divorced spouse showing up at your doorstep claiming to have a right to your property because their ex had sold the house without their consent.

This is highly unlikely, but it has happened.

Abstract of title protects you from things that may have happened in the past affecting the property, the same way home owner’s insurance protects you from things that may happen in the future that affect the property.

Getting a Home Inspection

2006-09-20T07:21:00.000-04:00

If you are in the process of purchasing a new home, it will definitely be in your best interest to have a home inspection done.

Not only will you want to have a home inspection done for your own sake, and peace of mind. But most lenders will require that you have a home inspection before they will proceed with the loan. The lending institution has just as much interest in the home as you do, so that is why they require a home inspection.

Getting a home inspection requires hiring a company to send out a home inspector to go through the home you are going to purchase. With you present, the home inspector goes through the home, and thoroughly inspects to make sure nothing in is need of major repair that cannot be seen with the naked eye.

Basically, a home inspector goes through a home and checks wiring, fixtures, plumbing, and the foundation of the home to make sure it is structurally sound. He will also inspect the outside of the home along with the roof to make sure there isn’t any exterior damage.

Along with the home inspection, it would also be in your best interest to inspect for wood boring insects, such as termites and beetles.

A pest inspection is also required by the lender before they proceed with a loan.

A pest inspection is done separately from the home inspection and is done through a different company that specializes in pest inspections.

Not only are home and pest inspections required by the lending institutions, but it would be in your best interest even if they were not. They cost anywhere from $300.00 to $400.00 depending on the size of the home, and you are aloud to be present and ask questions through the entire inspection.

Imagine if you found your dream home and loved it so much that you purchased it without having the home inspection done. On the day that you and your family move in, it is the happiest day of your lives. Than, three days after you move in, you get your first rain fall while in your new house. Than, the next thing you know, you have rain coming through the ceilings up stairs.

After something like this, you’ll be wishing you had the home inspected. Trust me.

Believe me, this stuff happens. So be smart, and get a home inspection. It beats paying $15,000.00 to $20,000.00 for a new roof.

In addition, once you have a home inspection done, you will have peace of mind that the house is sound and in good living condition. However, should anything happen to go wrong after you move in that was covered under your home inspection, you will have the home inspection company to hold accountable for the damage, and not have to pay it out of your own pocket.

To summarize, the home inspection is very important to both you and the lending institution. You both have an interest in the property, so have the home inspection done, you will sleep a lot easier.

Questions About Title Insurance

2006-09-19T11:28:00.000-04:00

What Is Title Insurance?

Title insurance protects you from any type of loss that may arise from problems connected with the title of your property.

The home you will be purchasing has gone through many ownership changes, and the land on which it stands has gone through many more. Along the way, some things may have gone wrong, such as a forged signature, or their may be unpaid taxes, or a lien against the property. Title insurance will cover the insured party for any claims or legal fee’s held against them.

Is It Necessary to Purchase Title Insurance?

If you want a mortgage, it will be necessary to purchase title insurance. It is required by all lenders. The amount the lender requires you to purchase is equal to that of the loan amount, and will last until the loan is paid in full. It is similar to Private Mortgage Insurance in the sense that it protects the lender, but the premium is paid by you up front in one single payment.

What Does Title Insurance Do for Me?

The required amount of title insurance protects the lender up to the amount of the mortgage, but it does not protect the equity you have in your home. For that you would need an owner’s title policy for the full value of the home. In many areas, sellers will pay for owner policies as part of their obligation to deliver a good title to the buyer. In other areas, borrowers must buy it as an add onto the lender policy. This is advisable because the additional cost above the cost of the lender policy is relatively small.

Points on Your Loan

2006-09-18T11:25:00.000-04:00

The amount of points you are being charged on your loan, is basically the amount of fee’s that you are paying the lender for doing the loan for you.

If you look carefully at your Good Faith Estimate (GFE), that the lender is required to send you, look closely for the line that says loan origination agreement, this is the technical term for points.

Each point you are paying on your loan, is 1% of the total amount of the loan. (One percentage point).

Lets suppose you are getting a loan for $150,000.00 and the lender is charging you two points, the total loan origination fee would be $3000.00.

Keep in mind that nobody works for free, but the loan origination fee is negotiable, so work with the lender or broker to pay as little points as possible.

Points on Your Loan

2006-09-18T11:23:00.000-04:00

What Are Points?

2006-09-16T11:26:00.000-04:00

What Are Points?

Points are the fee’s a borrower pays to a lender at the time of closing. Point is short for “a percentage point.” A point paid on a loan is one percentage point of the entire amount of the loan. For instance, if you are paying two points on a $100,000.00 loan, your fee would be $2000.00.

$100,000.00 x .02 = $2000.00

Does a Borrower Have to Pay Points?

Most lenders are willing to do point free loans, but in most cases, if not all, the lender will hit you with a higher interest rate.

Keep in mind that no lender works for free, and it is understandable that they must get paid. So remember, you will pay a price one way or the other.

Are Mortgage Points tax Deductible?

When you pay points at closing in cash on a home purchase, the points paid are fully tax deductible in the year that the loan was closed.

When you pay points in cash at closing on a refinance, the points paid are tax deductible, but the deduction is spread out evenly over the term of the loan.

Points that are financed, by financed I mean, the points are included in the amount of money borrowed to purchase or refinance the home, are looked at in the same way, they are not tax deductible.

The reason being, when points are included in the loan, the loan amount is higher, so the interest deductions will be greater. However, these deductions are spread out over the life of the loan. If you decide to pay your loan off early, most of the deductions taken from the points will be gone.

Should I pay Points or Go With a Higher Down Payment?

Most borrowers realize that they can do away with Private Mortgage Insurance (PMI) if they put more toward their down payment.

What people seldom realize, is that paying points to reduce their interest rate, might just be a better deal.

Both increased points, and an increased down payment can be looked at as an investment. In both cases the borrower puts up cash and will receive a steady flow of income in the future.

With a larger down payment the income is a result of a smaller monthly payment. This is due to the fact that you have decreased the size of the loan, and you don’t have to pay PMI.

By paying points you would be acquiring income by having lower monthly payments due to the lower interest rate you would have.

If you are not expecting to stay in your home for very long, say no more than ten years, than you should invest in the larger down payment.

If you believe you will be there for the entire length of the loan term, than investing in more points would be the wise decision.

As a Borrower, How Do I decide If I Should Pay Points or Not?

If you are planning to stay in your house for a long period of time, than it would be wise to pay more points to establish the lower interest rate. The lower interest rate decreases the amount of interest charges you will pay over the life of the loan.

If you are not planning to stay in your home for very long, than you would not want to pay as many points, and go with the higher interest rate on a smaller loan.

Going with a high rate and fewer points is also a good choice for people who do not have a lot of cash.

What is the Mortgage Term?

2006-09-15T10:04:00.000-04:00

Home Owners Insurance

2006-09-14T09:58:00.000-04:00

What is Home Owners Insurance?

Home owners’ insurance is the insurance on your home that protects you against damage to your home, such as fire and other hazzards. It also protects you against the theft of valuables from your home.

Is Home Owners Insurance Paid at Settlement?

Yes, the amount of your policy will show up on the Good Faith Estimate as an estimated amount, and the actual amount will be on the HUD1, which will list all of your settlement costs.

Home owners’ insurance is not a mortgage cost, but all lenders require that you have home owners at the time of settlement. The house is the lenders collateral for the money they are lending you, so they want to make sure that it is protected.

Can I Shop for Home Owners Insurance on My Own?

Yes, you can shop for home owners insurance on your own. Home owners is much easier to shop for than a mortgage, because premiums change only occasionally, so the price you are quoted will most likely be the price you pay.

When shopping for the lowest quotes, you will want to be careful, the two most important factors you will want to be comparing are the deductible and the coverage.

The deductible is the amount you, the home owner are responsible for. Say your deductible is $500.00, only losses greater than this will be insured. Higher deductibles carry lower premiums.

Pre Payment Penalty

2006-09-13T08:54:00.000-04:00

What Is a Mortgage Pre Payment penalty?

A pre payment penalty states that if you decide to payoff your mortgage in full, you will have to pay a penalty to the lender.

The amount of the prepayment penalty is determined by a percentage of the outstanding balance at the time of the payoff. Or it is determined by a specific number of months worth of interest. Six months interest is usually the norm.

Pre payment penalties occur if you decide to pay off the loan within the first couple of years of the mortgage term. Usually a pre payment penalty will last no more than five years, than they are gone for good.

The pre payment penalty is contractual with the lender and is part of the terms of the loan discussed before settlement. However, always ask about wether or not there is a pre payment penalty, you wouldn’t want it to sneak up on you.

Why Is There a Pre Payment penalty?

A lender imposes a pre payment penalty on a borrower in an attempt to discourage them from paying off their mortgage early by refinancing with another lender.

When this happens to a lender within the first couple of years of the term, they only stand too loose, so they impose the penalty.

Having a pre payment penalty waived during the course of the mortgage term is highly unlikely. It just is not in the best interest of the lender to waive it, just so a borrower can take their business else where.

Some states do not allow the practice of penalizing a borrower for paying off their mortgage early.

FHA

2006-09-12T08:52:00.000-04:00

What Does the FHA Do?

The FHA insures lenders in the event that borrowers default on their loans. The FHA actually encourages lenders to make loans that they might consider high risk.

The history of the FHA dates back to the 1930's when lenders stopped making new loans due to the amount of defaults they had received. As the country began to put time between itself and the depression, the FHA continued to play its role as advocate, and still does to this day.

The FHA is here to help low to moderate income people who otherwise would not be granted a home loan for reasons such as no cash for a down payment, or shaky credit.

Who Is an FHA Loan for?

FHA loans are for people who seek loans no larger than the loan size limits that have been set by the FHA program, and can either meet a 3% down payment requirement, have poor credit or both.

The majority of people who borrow through the FHA make down payments of less than 3%. The FHA will allow you to purchase a home with 1% down. The FHA will also allow a gift of funds for settlement costs.

Interest Only Mortgage

2006-09-11T09:10:00.000-04:00

What is an Interest Only Mortgage?

A mortgage is interest only when only the interest is being paid toward the mortgage on a monthly basis, and no money is being put toward the principal.

During the period where only interest is being paid, the loan balance remains the same.

The mortgage payment will be interest only for a specified amount of time, normally five years. After five years the borrower is than required to pay the interest as well as the principal.

Interest only mortgages are for people who want a low initial payment at the outset, and are confident that they will be financially sound when the time comes for the larger payment.

Negative Amortization

2006-09-08T10:06:00.000-04:00

Amortize means to gradually reduce. This is what happens when you make payments toward your mortgage on a monthly basis. The loan balance is reduced, or amortized.

Negative amortization happens when your monthly payment is capped, but your interest rate is not. The fall out too not capping the interest rate is that you may not be paying the full amount of interest due. The interest that goes unpaid for that month is added to your outstanding balance, resulting in negative amortization.

Negative amortization is most common in Adjustable Rate Mortgage (ARM) products. So, in order to avoid negative amortization, be sure to ask your lender if the program you are in will or will not result in negative amortization.

Also, be sure to go over your Truth in Lending disclosure with a fine tooth comb. If you see anything in reference to negative amortization, be sure to call your lender for an explanation.

Credit Repair Business Opportunity

2006-09-07T09:18:00.000-04:00

If you are in the credit repair business and you are looking for a credit repair business opportunity, you may want to consider purchasing credit repair leads.

Credit repair leads are considered a good business opportunity because normally people who go to specific sites and fill out forms specific to credit repair have committed themselves to finding a company and a person to help them.

With a credit repair lead, you will have a potential customer who is serious about having repair work done to their credit report. Otherwise, they never would have come as far as putting a phone number or e-mail out there for contact purposes.

These potential customers are not merely thinking about it, or just playing with the idea, they are truly serious and they are waiting on a phone call.

Of all the credit repair business opportunities available, purchasing credit repair leads is perhaps one of the best. Basically, the potential customer has come to you, and provided you with their information before you have even made contact.

Keep in mind, like all business opportunities, credit repair business opportunities need to be researched before any kind of commitment or investment is involved.

If you are considering purchasing credit repair leads, be sure to research the company you are purchasing them from.

Call and speak with one of their customer service rep’s and find out how they obtain their credit repair leads and what the process is for obtaining them in a timely fashion.

Debt to Income Ratio

2006-09-06T09:20:00.000-04:00

Loan To Value

2006-09-05T09:19:00.000-04:00

One term you will generally be hearing a lot during your quest for a mortgage will be loan to value, or simply put, LTV.

Loan to value is the amount of the loan you want, divided by the value of your home.

Lets suppose you want to refinance your home in order to get a lower interest rate.

The amount you owe on your current mortgage is $125,000.00, and the appraised value of your home is an estimated $155,000.00.

$125,000.00 divided by $155,000.00 equals 81%. Your loan to value would be 81%

The lower the loan to value on your home, the better off you are, because for starters, you have built a lot of equity in your home which can be drawn upon with a home equity loan, and if not, you are working towards a nice nest egg for your retirement.

A low loan to value plays a determining factor in your interest rate as well. From a lenders point of view, the lower the LTV, the less risk for them, and they generally will reward you with a lower rate.

In order to have the value of your home determined and recorded, you would need to have an appraiser come out and evaluate it. Your lender normally will handle setting this up, however, most appraisers require payment at your doorstep. Look for our articles on Appraisals for more information.

Fixed Rate vs. Variable Rate

2006-09-04T11:10:00.000-04:00

When applying for a mortgage, the most important thing to you, the consumer, is the rate. Obviously, you want the best rate you can possibly get, for this alone can save you a ton of cash in the long run.

Two types of rates you will be presented with to consider are the fixed rate and the variable rate.

The fixed rate is a rate set in stone, it never moves up or down for the life of the loan, the only way it can change is if you decide to refinance. To put it simply, if you have a thirty-year term with a fixed rate, your rate will be the same for the entire thirty years.

A variable rate is a rate that fluctuates with the prime rate, and can go up or down, depending on what the prime rate does.(the variable rate is most common in Home Equity Credit Lines).

Lets say you have a variable rate at prime plus one. If the prime rate is at four, than your interest rate will be at 5% (prime plus one).

Now if the prime rate goes up to four and one half, than your rate will go up as well, resulting in an interest rate of 5.5%.

On the other hand, if the prime rate goes down to 3.5%, than your rate will go down as well, resulting in a rate of 4.5%.

The variable rate is more of a risk than a fixed rate, but it can work in your favor if the prime rate goes down, however it can also work against you if the prime rate goes up. So always keep an eye on the market and make your decisions based on your research.

Back End Points vs. Front End Points

2006-09-03T13:28:00.000-04:00

What exactly is a point?

A point is a type of mortgage slang for a percentage point. The technical term for point is loan origination fee.

In laymen terms, a point is a fee you pay to a lender or broker. Each point is one percent of the amount of the loan.

Lets suppose you are getting a mortgage for $100,000.00 and the lender is charging you two points. $100,000.00 x .02 equals $2000.00.

The total dollar amount of points you will pay is $2000.00

In the mortgage industry, these points are commonly referred to as front end points.

Now,

If you are working with a broker, and they are working to find you a lender, the lender will reward the broker for bringing the loan to them with what they call back end points.

The back end points will affect your interest rate.

Lets suppose your broker is kind enough to give you a rate without making any money from the lender. The lender calls this the par rate. Now lets suppose the par rate is at 5%.

Keep reading . . .

Now lets suppose the broker wants to make a little cash from the lender. The broker will say to the lender, what will pay me a point?

This is where the rate begins to go up

The lender will say, if you want to make a point, than the rate will go up to 5.5%, and if you want to make two points, the rate will go up to 6%. You will end up with this rate.

So when the time comes to start going over fees with your lender or broker, make absolutely sure you ask about the back end points to be sure you are getting the best rate possible. Also, be sure to scrutinize the documents they send you before signing, especially the good faith estimate. (GFE).

Back End Points vs. Front End Points

2006-09-03T13:27:00.000-04:00

Back End Points vs. Front End Points

2006-09-03T13:26:00.000-04:00

Breaking Down The Libor

2006-09-02T14:51:00.000-04:00

When doing your research for a mortgage or refinance, you may come across the term LIBOR, which is an acronym for “The London Interbank offered Rate Index”

This pretty much means nothing to most people, it’s definition is as follows
The average of interest rates that major international banks charge each other to borrow U.S. dollars in the London money market.

The reason for this would be
The international interest rate index is used on some mortgages because American mortgages are being purchased by foreign companies as investments.

The LIBOR follows the world economic condition. It allows for international investors to match their cost of lending to their cost of funds.

The LIBOR compares most closely to the one year CMT index

Okay, what is the CMT index?
The CMT index is the “Constant Maturity Treasury” index. These indexes consist of weekly or monthly average yields on U.S. treasury securities adjusted to constant maturities.

There are several different LIBOR rates widely used as ARM indexes, but the six month is the most common.

Adjustable Rate Mortgage

2006-09-01T09:43:00.000-04:00

The adjustable rate mortgage, affectionately know as the ARM is a mortgage with a rate that will adjust over time. You may be familiar with the term three year ARM, or five-year ARM.

The interest rate on an ARM is dependent upon what the market is doing. If rates are on the rise, than you can count on your interest rate going up. If rates are going down than the opposite effect will take place, and you can count on your rate going down.

Keep in mind, this will leave you with a fluctuating mortgage payment, so be prepared if you have to start paying extra on a monthly basis.

An ARM should be considered for a couple of reasons.

By choosing a mortgage with an ARM, you will start out with a lower interest rate, so you will undoubtedly be saving a ton of cash on interest charges alone.

If you are not planning to stay in your home for more than five years, you may consider a three or five-year ARM. Once agin, you will save a ton of cash on interest charges.

If you are purchasing your home during a time when rates are high, by going with an ARM, you will start out with a below market rate, and if rates begin to decline, you can capitalize on them by refinancing.

Doing Your Mortgage Homework

2006-08-31T10:08:00.000-04:00

I can remember sitting in the car dealership with my father back in 1988 when I was seventeen years old in the process of buying my first car.

As the car salesman left his desk and his paperwork to consult with his manager, my father turned and said to me, “this is one of the worst things you have to do in life” the only thing worse he said, was buying a house.

At the time, I wasn’t exactly sure what he was talking about.

But looking back some seventeen years later, after purchasing two homes and selling one, I know exactly what he was talking about.

Buying a new home, or even refinancing one, can be one of the most stressful and painful things you will ever have to do in life.

It is by far the largest financial transaction you will ever make in your life. (Unless of course you are Bill Gates, or Paul McCartney).

The majority of people in America are not experts on the mortgage and real estate industry, so when it comes to buying or refinancing, the long drawn out process can be very intimidating.

There are so many parameters that must be taken into account, and a maze of jargon that you must educate yourself through during the entire process. You must find a realtor you can trust, a lender to loan you the money, you must figure out what you can afford, and how much you need for a down payment, the list goes on and on.

When purchasing or refinancing a home, it is absolutely essential that you do your homework, and ask a lot of questions. You will be amazed at just how many types of mortgages and programs are out there for you, so it is important to do a lot of research before deciding to choose the correct one for you.

Mortgages range from the standard conventional you get from your local bank, from the interest only programs you can get through a broker. If you are a veteran, there is a program just for you, if you are a first time home buyer, there is a program just for you. Again, the list goes on and on.

Amortization and Negative Amortization

2006-08-30T10:52:00.000-04:00

Mortgage Leads, Close More Deals

2006-08-29T11:04:00.000-04:00

If you are a loan officer or mortgage broker, either working with, or considering working with leads from a mortgage lead company. Here are a few tips on how to close more deals.

For starters, if you get an answering machine, leave a short, informative, detailed message about a rate and product that you believe they will be interested in.

The key here is to leave your customer hanging a little bit in order to tempt them into calling you back.

This is very important because most mortgage lead companies will sell their leads up to five times and your customer may already be working with your competition and not feel the need to call you back.

So if you put the carrot out their in front of them, chances are they will call you back out of curiosity.

Secondly, don’t give up after one objection, overcoming obstacles in the sales business is key to being successful.

If a customer says they are no longer interested or they are working with someone else, don’t give up.

Say something along these lines.

“Oh, that’s to bad, after looking at your on-line application, I was able to come up with a few rates and products that I believe would be ideal for your mortgage needs, do you mind if I take just a minute of your time to go over them with you?”

Nine times out of ten the customer will be willing to listen to you. I guarantee it.

Lastly, make sure you close the deal. By closing the deal, I mean make sure you take the application. Never be satisfied with only peaking their interest about what you can offer, make sure you take the application while you have them on the phone.

People can lose interest very quickly so it is imperative that you take the application before they have a chance to hang up.

About Me

2006-08-28T09:33:00.000-04:00

Are you tired of going through the pain of loosing money to Mortgage Lead Companies?

If the answer to this question is yes, like mine was, please continue to read further.

My name is Jay Conners and I have worked in the mortgage industry for over fifteen years as a loan officer and as a Branch Manager. Although I have had success in this industry, I often found myself at odds with mortgage lead companies and their services, I was literally throwing away hundreds of dollars with no results, and when I would ask for my money back, I would receive lame excuses such as “ We don’t sell leads, We sell opportunity”.

After years of frustration, and very little results, an associate of mine approached me with the idea of developing a site where we could produce our own leads. To me it sounded like a no brainer, so I accepted the challenge, and we forged ahead! We moved slowly but seriously, with the attitude that this was a hobby as opposed to a job, which I must say made it all the more fun. After months of research we went live with our venture, and in time we started to produce results, not much in the beginning, but enough to keep us motivated, and at the same time, make a little bit of money.

Still with me?

In time we were taking in more leads than we could handle, so we decided that the time had come to broaden our horizons, and sell our leads to other mortgage companies and independent loan officers.

As we attempted to sell our product, We were faced with the same agonizing statement from every loan officer “ We have lost money to lead companies in the past” followed by the question “ what makes you different?”

It dawned on us that mortgage companies and loan officers were experiencing the same challenges we were faced with when we were in their position.

Finally...

After much brainstorming to meet the challenges of mortgage companies and loan officers, it became clear to us, that the mortgage industry needed advocates to protect them from falling victim to the many lead companies trying to make a quick buck by selling “recycled” or “junk leads”

In short, we did not invent the lead business, however, we believe we took a pioneering approach. We did not require a certain amount of money to be spent, or require a certain amount of leads to be purchased weekly, monthly, or quarterly.We put the purchasing power in the hands of the consumer, with filters designed to meet their budget, allowing them to control their spending on a weekly basis, and shut down their filters to prevent spending on nights, weekends, and vacations. They were in complete control of their leads and their money.
The leads themselves were also sent on the same day the prospect submitted their information making them 100% fresh!

Before I go any further.....

I would like to stress that there are many lead companies out there that are completely legitimate, with very honest and decent people working for them, it is our goal to lead you in that direction.

This is the first of a series of free news letters to help you get the most for your buck in the mortgage industry, remember “ work smarter not harder”
Our free news letters are designed to provide you with helpful hints, and little known facts about the mortgage industry, especially the lead industry!
We will provide you with on-line surveys of lead companies, with information including pricing, refund policy, customer service, etc.
You will also be provided with the most up to date news, articles of interest, FAQ’s, and helpful hints about the mortgage industry, all in an attempt to make your life in this business as painless as possible.

How To Contact Me

If there are any topics you would like addressed, or any questions you may have, or if you just feel like discussing the industry and getting feed back, please feel free to contact me at any time, my toll free number is 877-824-2911, my cell phone number is 856-986-8778. If you would like to contact me by e-mail,please write to sales@callprospect.com

Mortgage Leads, Quality is to Be Considered

2006-08-25T10:19:00.000-04:00

To get right to the point of the title of this article, if you are a loan officer or a mortgage broker and you are on the market for mortgage leads, quality is one thing to be considered.

By quality I mean fresh or what is better known as “real time.”

Fresh leads are delivered to you hot off the press and they are anywhere from a matter of seconds old to no more than twenty-four hours old.

Anything else is pretty much recycled.

By recycled I mean that the leads have been sold multiple times to many different loan officers or even passed around from lead company to lead company.

Another term for these types of leads in the industry is junk leads.

I mean, what are the chances of closing a deal on a lead after you are the tenth loan officer to receive it.

In no way would this be considered quality.

Here is how you can be sure that you are receiving good quality leads.

Call someone in the customer service department of the mortgage lead company that you are considering working with.

Ask them how they obtain their leads.

You will want to hear that they obtain their leads through web sites they own and operate on their own.

If they are doing it any other way than they are receiving their leads through third party vendors.

Remember, it is quality that you are looking for, so stick to the leads that you can receive fresh or in real time and avoid the leads that are being recycled.

Credit Repair Business

2006-08-24T09:34:00.000-04:00

Credit Repair Business

If you own or are looking to start a credit repair business, one thing you will definitely be needing is credit repair leads.

The benefit of buying credit repair leads is that the customer is committed to paying a professional for credit repair help.

The customer is not merely looking for information. Once they fill out the on-line form, they have clearly committed themselves to seeking the help of a professional to have their credit repaired.

These people know that in order to move forward in life, that they will have to have their credit repaired in order to start acquiring things such as cars and homes.

Sometimes getting a small secured loan and rebuilding your credit month by month is not a fast enough turn around time for the consumers that need to obtain an automobile or a home for their family in a reasonable amount of time.

If you are looking to jump start a new credit repair business, or you are looking for a new lead source for your credit repair business, purchasing credit repair leads may be the way to go.

If you take your time and do your research, you will be able to find credit repair lead companies that sell their leads exclusively and at a reasonable price, they are out there, and if you find one, you should consider giving it a shot. Best of luck.

Marketing Through Article Submission

2006-08-23T10:58:00.000-04:00

Staying Afloat in Todays Mortgage Market

2006-08-22T10:34:00.000-04:00

As the refinance boom is quickly coming to an end, if not so already in the mortgage industry. It is critical to keep working in order to keep those leads coming your way.

Here are a few ideas to keep your name, products, and services in front of potential customers.

For starters, revisit every refinance you have done over the last few years. Pull out the customers that you put into an interest only, arm, cosi, or similar product.

The terms on types of loans such as these will be coming due shortly, and your customers will be faced with some decision making, here is your chance to make it easy on them.

So start making phone calls and sending out mailers today. Get your name back in front of their face and let them know you are still here and have many products to offer that would fit their needs.

Your next step would be networking. If you are in sales, nothing can be more important than networking. So, if you are not doing it, start. And if you are doing it now, do it more.

No matter how much time you are spending in the office, spend less.

Think about it, how much time do you actually spend selling in a day?

On average, a sales person spends two hours a day selling. Why are they in sales to begin with.

Join networking groups, chambers of commerce, rotary’s, community involvement programs, etc., etc.

And, don’t forget your friends and family, they should be a big part of any sales persons’ referral arsenal.

Never shy away from talking yourself up at family gatherings or bar-b-ques.

There is always somebody in a crowd that needs or knows someone that needs to refinance or purchase a home. So keep the business cards handy.

Also, don’t forget about your past customers. Give them a call to follow up and make sure they are still satisfied. And, while you have them on the phone, let them know you would appreciate any business they could send your way.

Internet Mortgage Leads in Real Time

2006-08-21T11:49:00.000-04:00

For loan officers and mortgage brokers on the market for internet mortgage leads, buying in real time is one method you definitely want to consider.

For starters, without the internet, it would be impossible to even buy your mortgage leads in real time.

Real time leads are mortgage leads that are delivered directly to your doorstep within seconds of the customer submitting their on-line application.

The benefit of purchasing internet mortgage leads in real time is the amount of time you will save. You would no longer have to call numerous prospects in order to get one application.

Real time leads are fresh and the prospect is waiting on your call.

With most internet mortgage companies, real time works like this.

You open up an account with the mortgage lead company and set up a filter specific to the type of leads you are looking for, ie. State, LTV, loan amount, credit rating, etc.

Once a lead is submitted by the customer to the mortgage lead company and it matches your filter, it is delivered to you immediately by way of e-mail.

Basically, all the work is done for you by the mortgage lead company. Once they send you the lead, make the call and take the application.

Sell Your Customer What They Need

2006-08-18T09:46:00.000-04:00

When it comes to selling your products it is important to ask your potential customers probing questions as well as open ended questions.

These types of questions are geared toward gathering information. They commit your customer to giving you anything but a yes or no answer.

For instance, an open-ended question would come across like this:

What is it that you like so much about your current bank?

Now, if you are a banker trying to get a customer to bank with you, you will now be able to compare your products and benefits to what your customer has just told you about their current bank.

Also, by finding out about what they like, you will also find out what their needs are.

Another name for selling a customer what they need is “needs-based selling.”

All sales people have goals and we have a tendency to sell things to people even though they have no need for the product just so we can have our numbers inflated so we can talk about it during the weekly sales meeting or conference call.

The downside to selling something to someone that they have no need for is that your customer will quickly figure out that they don’t have a need for it and will never consider you in the future for your services.

This is the reason why it is so important to find out what your customers needs are before you sell them something.

When you sell a customer something that they need or want, they will be truly happy with the product and the service and appreciate your help.

As we all know, a happy customer is a good customer and will always come back to you for your services and refer friends and family to you as well.

Probe Before You Sell

2006-08-17T09:36:00.000-04:00

When selling a product to a customer, it is very important to find out as much as you can about your customer and their needs before you proceed with your sale.

This is commonly referred to as “needs based selling.”

The most effective way to find out about your customers needs, is to ask probing, open-ended questions.

An open-ended question does not allow your customer to give you a “yes” or “no” answer, it makes them explain to you what their needs are, and why they would need a particular product.

Here is an example, if you were a sales associate at a furniture store, and a customer walked in looking for a dining room set, an open-ended question you might ask would be:

“Tell me about the particular type of pattern you are looking for,” or simply put, “tell me more about what you are looking for”

This puts your customer in a situation where they cannot say “yes” or “no,” they must go into detail.

On a personal note . . .

Not to long ago, my wife and I were in a department store looking for a coat for me.

I spotted one that I like hanging on a discount rack. It was brown, with a removable liner, and a zipper that ran the length of the collar, to protect your neck.

I liked it so much, I took it from the rack and tried it on.

As I stood admiring myself in the mirror, a sales associate came over and complimented me on my appearance in this jacket.

I smiled politely and thanked her. She than proceeded to tell me that the best part about the jacket was that it smelled like real leather.

Taking her word for it, I put my nose to the sleeve, took a whiff, and sure enough, it smelled like real leather.

The only problem was . . .

I don’t like the smell of leather.

Needless to say, I put the coat back on the rack, and the friendly sales person lost the sale and the commission.

The mistake the sales person made was assuming that I liked the smell of leather. It was a safe assumption on the part of the sales person, because most people like the smell of leather. This doesn’t mean it should be taken for granted.

The point I am trying to make, is that it is essential that you ask probing and open-ended questions, find out as much as you possibly can about your customer before you present them with a product. You’ll end up with a lot more sales. Believe me!

Mortgage Leads for Refinancing

2006-08-16T09:35:00.000-04:00

If you are a mortgage broker or loan officer on the market for mortgage leads, your best bet for a quick turn around time on a loan is with the refinance leads.

Not to say that you can’t have a quick urn around time with purchase leads, you can. But, as you well know, refinancing a persons home can be done in a relatively short amount of time.

Here is something to consider when shopping around for mortgage leads.

Look for the mortgage lead companies that sell their mortgage leads fresh or in real time.

It is basically pointless to purchase a refinance lead that is weeks or even days old.

Most likely the consumer is already working with another loan officer and is half way through the process.

Also, find out how the mortgage lead companies obtain their leads.

Look for the mortgage lead companies that obtain their leads through web sites they own and operate on their own.

Otherwise, they are obtaining them from third party companies and recycling them.

The last thing you want or need is a lead that has gone through the hands of half a dozen loan officers.

Remember, you work hard for your money, so be sure that when you invest with a mortgage lead company that you will be getting your money’s worth.

Exclusive Mortgage Leads on the Internet

2006-08-15T10:12:00.000-04:00

For loan officers and mortgage brokers looking for exclusive mortgage leads, receiving them over the internet is the way to go these days.

By buying exclusive internet mortgage leads over the internet you will be receiving them on-line and in real time, or fresh.

This means you will be receiving your leads hot off the press. And, because they are exclusive, you will be eliminating your competition.

But before you go and make a move with a mortgage lead company, be sure to do your homework.

You want to be absolutely sure that you are getting your money’s worth, so check out your potential prospect’s web site thoroughly, than call the lead company and speak with someone in customer service.

If they don’t give a number for you to call, than move onto the next lead company. Think of it this way, who are you going to call when you need a refund for a questionable lead?

Ask the person in customer service how they obtain their leads.

This is what you will want to hear.

You will want to hear that they obtain their leads through web sites they own and operate on their own. This pretty much guarantees the real time quality that you are looking for.

This is what you don’t want to hear.

If they tell you that they obtain their leads through third part vendors, than they are recycling leads. Or pretty much selling what is know in the industry as junk.

Keep in mind, you work hard for your money, so take the time to make sure that you will be getting what you pay for.

Evaluating Your Customer

2006-08-14T09:38:00.000-04:00

It is one thing to make a sales presentation, but it is another thing to make a sales presentation without first evaluating your customer. For all you know, you could be selling your customer something that they already have, or something they don’t want, don’t need, or can’t afford.

This is why it is so very important to take your customer in, sit them down, make them feel comfortable, and get to know them and what their needs are. Once you have done this, you can then sell them a product based on what their needs are and not what you think they are.

On a personal note . . .

I learned the importance of evaluating your customer the hard way. A few years ago, I was a branch manager working in a bank branch. One particular customer of the bank approached me in my office about opening a savings account for her daughter.

Once I explained to her the process of opening a savings account, I proceeded to tell her all about a current promotion we were having on our home equity loans. She sat there and listened very politely and patiently as I very proudly went down the list of all the benefits, features, and tax breaks that come with a home equity loan.

Once I had finished my rehearsed presentation, she said to me;

That all sounds very nice, and it is something that I will consider in the near to distant future. She than went on to tell me that she and her husband rented the house they lived in.

So there you have it, I tried to sell a home equity loan to someone without a house.

Needless to say, my face turned a deeper shade of scarlet, and I felt like an idiot.

But hey, I learned from my mistake. Had I asked some simple probing questions before I went straight for the sale, I would have saved myself a lot of embarrassment.

You will be amazed at what you can find out from people just by asking them a few simple questions about themselves. Remember, people love to talk about themselves. Their jobs, their pets, their kids, just about everything.

I once had a friend who owned a shoe store, and his inventory was made up mostly of sneakers. One day a man walked into his store to buy a pair of sneakers. As my friend assisted him with his decision, he struck up a friendly conversation with him. As it turned out, this customer ran a basketball camp during the summer and he loved to talk about it. A few minutes into the conversation, my friend and his customer had come to an agreement. All of the boys and girls that attended the customers basketball camp would receive a 10% discount on their sneakers if they purchased them at my friend’s store.

So, as you can see, my friend increased his sales that summer simply by striking up a conversation with his random customer and asking a few questions.

Imagine going to your doctors office with an ailment and having him prescribe you a medication without asking what your symptoms were. Would you take the medication?

The same principal applies.

It really isn’t rocket science, it’s just friendly conversation, get to know your customer and watch one sale turn into many.

Why service only one of your customers needs when you can service them all.

A Perfect Marketing Strategy for Loan Officers

2006-08-10T10:42:00.000-04:00

If you are a loan officer or mortgage broker looking to score some more customers the easy way, here are a few good ideas for a marketing strategy.

During the entire process of getting a loan ready for closing, you and your customer are met with more than one reason to celebrate other than at the closing table.

For example, before you can proceed with a loan, your customer must have an appraisal done on their home.

Once that appraisal comes in, both to the liking of you and your customer, send your customer an inexpensive congratulatory gift such as a tin of pretzels, cookies, or candy.

But make sure you send it to their place of employment.

Why do something so cheesy you may ask?

Because when you send someone a gift at work, all of their fellow employees want to know why they got it and who it was from.

So when they ask, your customer will tell them all about you and the products and services you are providing them with.

Also, if you have sent some of your business cards along with the gift, you better believe they will be handing them out.

Don’t forget to use the same technique once the loan is approved and than again once the loan is closed.

This is a perfect way to get your customers selling you and your products to co-workers, friends and family.

What Not To Do With Your Leads

2006-08-09T09:54:00.000-04:00

Anyone that works in sales knows just how important it is to have lead sources to keep your pipeline filled. But it is not only how we obtain the leads that is important, it’s what we do with them once we get them.

One of the most critical mistakes a sales person can make once they receive a lead, is not acting on it immediately.

I once worked with a guy who belonged to a networking group, the soul purpose of his joining this group was to receive leads. This group wasn’t cheap either, it cost him $500.00 annually to be a member.

He would come back from his weekly meeting with a lead in his hand and pin it to the bulletin board above his desk, and there it would stay until he noticed it a few days later.

It drove me nuts!

In sales, and it does not matter what you are selling, every day is critical! At any moment, your competitor can call your customer and walk away with the business.

Another common mistake I have witnessed countless times, is contacting the lead in a timely fashion, but having absolutely no enthusiasm once you contact the customer.

When you call a potential customer, smile as you speak to them, the customer will pick up on the inflection in your voice and respond to it.

Don’t act as though the customer is a burden to you, and that you are doing them a favor.

Remember, you are the expert when it comes to your product, don’t expect your customer to know everything, if they did, they wouldn’t need you. So make sure they know that you are happy to help them.

Another no-no when following up on a lead is to yawn, sneeze, or cough into the receiver of the phone. I understand that these are normal and common bodily functions, but there is no excuse for doing it directly into the receiver, this is a great way to loose the sale, the yawn alone will most likely make the customer hang up the phone.

Always put yourself in the shoes of the customer. Imagine meeting someone for the first time over the telephone and your conversation is being interrupted by yawns, and sneezes, I doubt you would be gung-ho about doing business with them

Following up with a lead and then putting that person on hold is another common mistake I have come across. Although your reasons for putting your customer on hold may seem very important to you, your customer will find it to be annoying regardless of your reasons. So be sure to set aside a time to call your lead when you know the interruptions will be few.

So the next time you receive a lead, act on it immediately, let your customer know that you are happy to work with them, speak clearly and avoid interruptions, and watch your sales productivity increase!

Lead Companies, 8 Features to Consider

2006-08-08T09:14:00.000-04:00

So now the time has come to invest in Lead companies, but how do you know which one is the right one for you?

When I was a new loan officer, finding a lead company was not easy, I can remember logging onto Yahoo, typing in the key word “mortgage leads” and being bombarded with links leading me in the direction of lead companies all claiming to have the best leads and the best deal for me!

But what was the best deal for me? That all depended on what I was looking for, so taking my time, I began to right down exactly what it was I was looking for, did I want refi’s, purchases, or both. Did I want leads from several states or just one, how much could I afford? Etc., etc.

Before I invested any money, I decided I was really going to do my home work, I went to sites of the companies I was considering to read their terms and conditions, I spoke with reps in their customer service department and asked many questions, I went to lead site reviews posted on the web to see what kind of experience other loan officers had with the companies I was considering.

One thing to keep in mind, No lead company can guarantee you a 100% closure ratio, and they are very up front about that, if that is what you are looking for, you can end your search now.

Still with me? Good!

Here are a few things to consider before committing

1) Pricing

If you are on a tight budget, and have, lets say, $100.00 to spend, you will have to narrow your search to the lead companies that accept a $100.00 or lower minimum or will meet whatever spending limit you have set for yourself. Some companies have deposit requirements, not allowing you to deposit less than $500.00, so this would not be the company for you.

2) Lead Generation

Find out where the company is generating their leads from. Some companies recycle their leads and sell them many time over. They also buy their leads in bulk off of other companies and resell them, so make sure you ask this very important question up front.

3) Return Policy

Look for a company with a liberal return policy, the best way to find out this information is through lead site reviews.
If you receive a lead with bogus contact information, there is no reason why you should not get your money back.

4) Quantity vs. Quality

Be careful when you buy in bulk, when you can spend $100.00 and receive 50 leads, chances are the leads are old and are being recycled, and the closing ratio isn’t so good.
If you can spend $100.00 and receive five to ten fresh leads, you may be better off, and also have a much better closure ratio.

5) Cherry Picking vs. Filters

Cherry picking is a nice feature, and a very popular one, it allows you to go into a site and view a lead before you purchase it, some sites even let you know how many times it has been sold.
Filters are also very nice features, they allow you to predetermine what kind of lead you want, and when a lead comes in matching your filter criteria, it is sent directly to you via e-mail or fax.

6) Customer service

As in all business’, customer service is key, and the way they handle themselves on the phone can be perceived as a good indication as to how their company is run.
If you are struggling to get a hold of someone, or your phone calls are not being returned, they are most likely not worth doing business with.

7) Referral

One of the best ways to find a mortgage lead company, is to have one referred to you by a co-worker, or by someone within you organization who has had success with a lead company. Ask around and see what you can come up with.

8) Exclusive vs. Nonexclusive

If you want to receive leads exclusively, you will pay a steeper price, however this lead will be sold to you only, doing away with your competition.
Non exclusives leads are sold on average three to five times, it usually will cut the cost of the lead in half, but keep in mind, you are now competing with other loan officers. Remember, you get what you pay for.

One last thing..

By considering these eight features of mortgage lead companies, you are well on your way to choosing the best lead company for you, and at the right price. But don’t stop here, continue to gather as much information as you can before you invest, I can’t stress enough just how valuable the lead review sites are, check them out, it will be worth your time.

Lead Companies, 8 Features to Consider

2006-08-02T09:00:00.000-04:00