The “F” word of the mortgage industry. Fallout can mean a difficult conversation with a potential borrower, reduced income, and a lot of hard work with little to show for it. Of course, the reality is that not every application will result in a closed loan, but here are a few ways to minimize fallout, and maximize closings.
- Ask lots of questions up front.
The more you learn at the start of the process, the more potential issues you can uncover with plenty of time to resolve them. Where is the down payment coming from? How long do they plan to stay in the home? What is most important – a low down payment, minimizing the amount paid in interest, something else? When do they hope to close? (If this is unrealistic say so now!)
- Submit a complete application.
It’s said often because it’s that important. When every piece of information and documentation is submitted upfront it minimizes delays, sends your file to the front of the line, and gives ample time to find solutions to any problems that arise.
- Make use of eSign and eConsent.
Don’t let the new disclosure requirements push back a closing date and destroy a deal. Use eSign and eConsent to increase efficiency and shorten the loan process. Documents can be delivered in seconds rather than days and eliminate the need to factor mailing time into mandated waiting periods.
- Work with a variety of programs.
Your slam dunk borrower ended up deciding to purchase a mobile home? Or a fixer-upper? Or a home in a rural area and is wondering if they can get 100% financing? When you offer a wide selection of programs it increases the likelihood that you’ll have a solution for any scenario that crosses your desk.
- Communicate early and often.
One of the most common frustrations among mortgage applicants is not knowing where things stand, and feeling that they can’t get their questions answered. It’s understandable not to want to deliver bad news, or even to say you don’t have the answers your client is looking for. Still – delaying the conversation never makes it easier, or improves the reception on the side of your borrower. It is always better to be up front, share what you know when you know it, and show that you are on their team. When you don’t have the desired information it can be helpful to share other details that you do have available. Even if it’s not exactly what the client was interested in, it can go a long way to show that things are progressing, and that their loan is a priority.
Photography by [Andriy Popov] © 123RF.com
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