It’s all about communication
- Good lenders are flexible to adapt their communication methods to the needs of your clients — and you.
- Good lenders prep clients for each step of the lending process and follow up with clients working to improve their financial standing.
- Lenders using a frustrating application system can cost you clients.
Working with the wrong lender can raise the level of stress in every one of your transactions and have devastating impacts on what you make in a given year. It’s crucial that you identify good lending partners for your business.
So how do you know when you’re working with the right lender? Oftentimes it comes down to communication.
How does your lender communicate with you and your client?
Some lenders want to communicate strictly through email and text, while some want to do everything face-to-face. It’s important to find a lender who will match their communication to your client’s preference — and yours.
Maybe you like to be texted or blind-copied on emails, while your client prefers phone calls. Have that conversation with your lender, and pay attention to how they adapt their communication style.
How well does your lender prep your client for the lending process?
The better the lender communicates to the borrower what to expect through each step, what paperwork will be asked of them and when, and what frustrations they might encounter, the easier the process will seem.
Some lenders rush through that process, and others pay close attention. Find a lender who works to understand the client’s schedule and needs, and who asks what’s important to the client.
Does your lender coach clients so they can get approved?
Some lenders are good about coaching clients who need help improving their financial situation before they can qualify for a loan. The consumer might be waiting for a stable job or saving a down payment. They might need to improve their credit score.
Whatever the situation, it’s a lender’s job to walk consumers through the steps and get them ready to qualify. Often it’s the real estate agent who ends up doing the heavy lifting, but a good lender will take that burden and help clients get in position to purchase a home.
Some lenders have good intentions initially but don’t follow up. Other lenders stay on top of things with regular phone calls to check on a client’s progress. If you find one of those lenders, it makes a huge difference in how many deals you’re able to put together.
How easy does the lender make the application process for the client?
When you initially work with a client, they may not even know if they want to work with you. You might be showing them a house from a sign call or a website. They’re still getting to know you when you introduce them to a lender.
Suddenly the process turns into a pain for them to find out if they can get financing. It might be due to the lender’s frustrating process. You can lose clients that way.
A lender should guide clients and make the process as smooth as possible for the way that specific client likes to do business. Some buyers prefer to fill out a mortgage application in person with the lender or over the phone, while others want to do it online.
Instead of spending hours filling out a complicated application, some buyers might prefer to answer a few questions via email and let the lender fill out the majority of the application for them. It’s important for a lender to recognize which process will make each individual buyer happiest and adapt their process accordingly.