So, your client is entering into the mortgage realm and all stressed out. As a real estate agent, it is your duty to walk them through the ‘mortgage mayhem’ and come out a winner. Surviving the mortgage process is critical since it’s going to be around for some 25 years. A good beginning ensures people love their home and not consider it a burden.
How can real estate agents help their clients approach the much-feared mortgage process?
Getting a home loan is now easier than ever. But that is not to say that it is 100% stress free. The quirky mortgage struggles often result in deals falling apart. The paperwork can be daunting in some cases. Fallout ratios are rising because of unstable unemployment rates, credit ratings, mortgage application processes etc.
From a real estate agent’s viewpoint, it is critical that you master this art of helping clients sail through the mortgage application process. This can help you maximize revenues, optimize business and carve a niche for yourself. A lower drop out rate also shows the trust people place in you. So, how can you meet these challenges and navigate the tough mortgage route.
Mortgages are Not All Fun
Putting significant money for mortgage is not to be taken lightly. Changing terms, lengthy application process, loan jargon terms, regulations etc. all can be overwhelming for some investors especially first time homeowners. Often final terms are drastically different from where the client started. Fluctuating interest rates only adds to the prevailing confusion.
Loan approvals can seem to lose their credibility when buyer faces a hurdle later in the loan approval stage. The real conditions usually hit the client once an authentic mortgage application is floated. This is where real estate agent’s work starts. They have to explain the changing topography. Clients must be fluidly explained about extra insurance costs, lengthy terms and conditions, paperwork procedures, document procuring etc. The meetings with underwriters must be supervised with extreme diligence. All this can even make a monk go berserk.
Real estate agents have to carry their client through this emotional roller coaster with patience and perseverance. No one wants to go through the stress. People who are unable to handle the stress simply draw the line and back out from the deals. By minimizing the stress, agents help their clients overcome their fear.
Setting the Expectations Right
It is often seen that real estate agents make home buying seem like a cakewalk. Potential buyers are promised a hassle-free and perfect application process. Their dream home seems like a reality as easy as saying 1-2-3. It is no more than just a miracle – and miracles rarely happen!
As an agent, you should over prepare your buyers. Let them know the worst-case scenario and potential hurdles that may pop up anytime. Don’t make mortgage a challenging process. But do let them know the process is not hurdle free. Put forth a practical real-world picture to get them ready. For example, the underwriter meeting may go smoothly and they will be very happy. In that case, they will truly be thankful to you and even refer you in the future. On the other hand, in case the meeting goes downhill, they won’t panic. By setting the bar higher, you have allayed their fears. The same goes for documents. Let them know every piece of document that may be required. Even if some documents are not required, they will feel they are ahead of the game.
Always understand a client’s stress. Don’t think they are going to handle themselves. People don’t buy homes every day. So, stand by their side and lend them a hand. It’s always worth it!
Revive Property Group