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Form Strategic Partnerships With Mortgage Bankers
One of the most important people in the real estate industry you should align yourself with are mortgage bankers. Many agents prefer brokers rather than bankers. The choice is entirely up to you. Bankers work for just 1 particular bank while brokers work with almost every available lender. No matter what, they play an essential role for your success as an agent. To put it simply, you won’t be able to close any deals if your client is unable to finance the transaction. Here are some of the ways they can help you.
They can help with more complex borrower situations
Mortgage brokers are usually data aggregators who just use your profile to filter out results that you qualify for. Unless they are really experienced players, they usually do not have skills on knowledge on credit scoring and banking processes. Should your client not be a straight-forward borrower, you need the expertise of bankers to help your clients navigate issue to get a loan approval. On sensitive credit issues, they might even let you know what the client has to do in order to obtain an approval.
Split marketing costs
Bankers and real estate agents work hand-in-hand in a way that is tough to explain. They need each other, yet they commission split do not affect each other. At the same time, they are competing with everybody else. Confused yet? If your goals and your partner’s goals align properly, you can share the marketing costs in prospecting for clients.
A partner in closing
As long as a deal is not closed, there is always a chance of a deal falling through for any reason you can think of. And because a banker’s commission is dependent on the buyer taking up a mortgage with him, he will be applying his sales skills to close the deal for you as well. This way, a client will be sold on more than one angle on closing the transaction. A transaction which you will be remunerated for.
Since a loan officer cannot represent many banks, they will have their hands tied when their banks are unable to grant a loan to your client. But you don’t have to worry about that because bankers often have friends working in competing lenders. For some reason, it is not surprising to find employees in this industry jumping from lender to lender. They can easily hook you up with other bankers who will be able to do the loan. This helps to build your own professional network as well and you could potentially be looking at more partnership opportunities.
Pick up new knowledge
Mortgage originators should be able to teach you about the basics of how home loans work. You need these knowledge when serving customers or acquiring prospects. Questions on financing are normally one of the important issues that are on the mind of a home buyer. By having the information on hand to give your clients, you will present yourself as more professional and serious in your work.
Learn more about the industry
It is almost inevitable that a banker will be serving more clients than you. An average on would handle at least one new client per day. This gives them in-depth on-the-ground knowledge on what is happening in the property market. If you have your own impression on how the market is doing, they can usually offer a good second opinion or confirm your judgement.
The biggest potential drawback of these partnerships is that there is always a fear that bankers will send your clients to other real estate agents. Because of their nature of work, they can possibly be networking with more agents than you can count. But in this line, there is an unwritten rule that most professionals will follow. And sending your business opportunities away is clearly a line that few would cross. Even then, if you, by any chance suspect that you are being betrayed, do not hesitate to change a partner. There are many honourable professionals around that are worth your time and effort.