One of the simple truths is that no matter what mortgage lenders quote a borrower, someone else will always go lower. This begs the question, how exactly do mortgage loan originators overcome competitive pressures – especially in low-rate environments?
Effective mortgage loan originators are continuously learning and adjusting how they sell and interact with customers in the marketplace. In a high-volume market, mortgage loan originators should strive to identify and overcome the common stalls and objections they are faced with.
Borrowers have been trained to focus on the rate as the single most important component of a mortgage because they often believe it’s the key to achieving what they want – which is to save the most money. Overcoming rate resistance is as simple as understanding the underlying motivations driving their borrowers’ decisions. Mortgage loan originators should first strive to answer one question, “What do you value most?” Is it a low monthly payment? Or is it a term that aligns with their retirement goals, a desire to eliminate unsecured debt, or perhaps the ability to buy their dream home?
Borrowers are good at convincing themselves and their mortgage loan origination partners that what they solely desire is a low rate. When, what they really desire is savings, security, and stability. Mortgage loan originators can work to reveal underlying desires and goals by asking thoughtful and open-ended questions. This will put them in a position to show their borrowers that they can provide them with a loan that, regardless of rate, can fulfill those desires.
Once MLOs help their borrowers understand what they desire in a mortgage transaction, there still may be objections and stalls throughout the process. Borrowers are still prone to revert to what they’ve been taught their entire life – which is rate trumps all. Mortgage loan originators should be prepared to overcome any objections to their loan offers and push through borrowers’ attempts to stall the process.
MLOs need to understand the difference between an objection and a stall. Objections confirm interest in moving forward with the loan, whereas stalls reveal a lack of commitment and point to a hidden objection. By asking the right questions, mortgage loan originators can reveal the why behind an objection and identify what is keeping the sales process from moving forward. Explore the Prescriptive Selling course series to learn more about how to build and maintain a book of business. The Prescriptive Selling series provides your sales team with the skills necessary to sell more effectively and covers key learning skills, including uncovering the client’s need, selling the benefit, next step selling, and more.
Mortgage loan officers shouldn’t fall into the trap of letting the rate dictate the sales process. Great value, great benefits, and great relationships win their business. MLOs should aim to uncover their borrower’s desires, overcome the objections, and serve their borrowers — in any market.
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