As a mortgage lender, you’re always looking for ways to improve your business’s efficiency, generate new leads and increase productivity. When you are committed to the improvement of your lending processes, you can increase the number of completed applications, extend more loans to approved individuals and attract more potential clients.
Improvement is a continual process in any business – whether you’re an experienced mortgage lender in New York or a new mortgage Utah company. There are several areas of your mortgage loan origination and approval process that need a few tweaks. After all, improvement to your processes will draw in more borrowers who need financing for their new homes.
Today’s homeowners are looking for mortgage lenders with an efficient process. On top of that, they also want to work with a lender who prioritizes their needs, uses the latest technology and focuses on customer service.
How can you do that? Consider the following.
Automate Your Pre-Qualification Process
The first step in any mortgage loan service is a borrower’s pre-qualification. A potential borrower provides you with the necessary requirements to pre-qualify for your offered loans. This task can be time-consuming since most loans require plenty of documents. Fortunately, you can do information and document submission online.
By automating your pre-qualification process, you decrease the hours spent on pre-qualifying people for financing. At the same time, you open your services to more potential clients. When you allow let homebuyers submit their documents digitally, you immediately improve the efficiency of your lending operations.
Go online with your operations. After all, automation is the future of the mortgage industry.
Stay Compliant at All Times
Perfect legal compliance is one of the most challenging requirements for mortgage lenders since it includes many factors, such as annual continuing education or compliance with the state’s licensing requirements (e.g. mortgage surety bond agreement). Compliance also includes nuanced and advanced requirements like staying on track with current federal rules released under the SAFE Act.
If you’ve struggled with staying compliant, sign your business up for compliance training. Moreover, if you haven’t invested in one yet, consider introducing a Compliance Management System (CMS) to your team. If going digital with compliance isn’t an option yet (in the future, it should be!), work with a compliance officer instead.
Compliance is challenging but it remains a crucial part of your success.
Keep Your Borrowers Updated
There’s nothing worse for a hopeful home buyer to end up waiting with uncertainty. Homebuyers aren’t big fans of being unsure of the status of their loan application. Instead of prolonging their anxiety, encourage and reassure them by providing them with a timeline. The timeline should inform them which tasks have been completed and what their next steps should be.
It doesn’t have to be a complex diagram. It can be something as simple as a horizontal bar that lists down the steps. You can fill in each step once it has been completed. You can also display the bar at each stage of their loan application process. Email updates can also keep your customers committed and engaged.
Go the extra mile by offering them a house amenities checklist while they wait for the results of their application.
Always Build Your Network
A big and reliable referral network is the key to driving more leads to your business. Fortunately, there are many ways you can build a network in your industry. All you have to do is have confidence, create connections with lenders, originators and loan officers.
But your efforts shouldn’t stop there. Many brokers report that making connections with real estate agents and builders matters too. For example, you can offer incentives to builders who refer your company to their clients.
Also, you can make connections with financial institutions. For instance, if a bank can’t make a deal, negotiate with them to send the homebuyer to your business instead.
Always Market Your Business
You’re not the only mortgage lender in the industry. If you’re not competitive enough, other mortgage businesses will gain your clients. One way to stay competitive is to sharpen your marketing strategies every day.
With marketing, your possibilities are endless – SEO, social media marketing, paid aids and business listings. In fact, email marketing and websites can also work to your advantage. All of these digital marketing tools are important parts of your strategy. You can also strengthen your marketing campaigns with educational blog posts and videos.
Although digital marketing is beneficial, being a mortgage broker is still about relationships. In-person meetings are just as important as online meetings. Whether you organize seminars or coffee discussions with clients or show up to community events, your personal interactions with your clients are important in your marketing.
Mortgage lending is a competitive business, but you can win at this game by playing the right cards. Continual improvement is the key to your success. Here’s to always improving your operations for better results!