Every mortgage loan originator is essentially their own business entity within a larger organization. Creating a sustainable business model, therefore, should be every mortgage loan originator’s top priority. This business model would need to include three central components—marketing, sales and customer service, as these three factors are responsible for a loan originator’s recurring revenues.
Contrary to popular belief, the loan industry isn’t simply about closing the deal. It’s about helping people make, in most cases, the biggest investment of their lives, while simultaneously differentiating your services from the rest of the markets’. What was the keyword in the previous sentence? Differentiating. It’s what set you apart from the thousands of other mortgage loan originators vying for the same clients.
So how does a mortgage loan originator differentiate themselves?
- Understand the real estate process.
This may seem obvious but a mortgage loan originator ought to know the real estate business backwards and forwards. Real estate is the industry loan originators work in; so, in order to be viewed as a credible source, originators must understand the economics of owning a home—not simply selling one. The concepts of real estate finance—stemming beyond loan programs—should be mastered by loan originators. This knowledge will reinforce a loan originator’s image as a trusted adviser, able to look beyond the immediate purchase into the client’s future financial goals. Donning the hat of the home buyer will better enable a loan originator to empathize with their clients, a key ingredient in the sales profession, translating to more sales. Lastly, viewing real estate agents as friends and not foes will go a long way toward understanding their industry.
- Master the art of underwriting.
Mortgage loan originators are in the business of evaluating peoples’ finances and determining their loan qualifications. Once a loan originator has conducted this review, he/she will then underwrite and process the loan, which requires knowledge of complex accounting. Running to the nearest CPA will not boost an originator’s image as an expert adviser.
- Become a marketing guru.
No, mortgage loan originators really must become well-versed in marketing best practices/principles. Marketing is how you generate quality leads and establish a customer base, which can be a time consuming and costly endeavor. Cold calling and paying for leads is old-fashioned. Loan originators should attend marketing seminars and discover which marketing campaign works best for their business.
A mortgage loan originator who masters these steps will clearly set him/herself apart.