Loan Officer Training: Are You Still Waiting for Business?
Close your eyes and imagine this scenario with me. You have worked hard to prove yourself as a valuable resource to this real estate agent. Some of the work was tedious, but you kept telling yourself
that once you were in, you were in. The reward would be worth it. This agent closes several transactions per month, and you intend to be the loan officer who closes those loans.
What really happened? Well, you did a great job proving yourself and the agent certainly trusts you enough to recommend your services. But where are all the closings? Where are all the referrals? The realtor is telling you that the referrals ar.coming but they never do! What happened? How frustrated do you feel? Are you annoyed? Do you feel like you wasted a lot of your time and effort in developing this relationship?
I would tell you to go ahead and open your eyes now as we snap back to reality, but well, I™m assuming you never actually closed your eyes if you™ve already read this far. Let's pull out the microscope here and look closer at what events are causing you to not get the referrals you deserve.
I would like to begin with the realtor. Whether the agent you are working with is a mid level producer or high producer doesn™t matter. If the agent is working closely with you, he/she may genuinely try to get you referrals. The problem is that even though the agent may be a good or great salesperson, this doesn™t mean that he/she understands the dynamics of giving a referral.
What I mean is, I have personally witnessed the process that most agents view as referring a loan officer. The process isWell Let's just say the process leaves a lot to be desired. Handing a business card to a prospect is not what I consider to be a strong referral. Neither is telling the prospect 101 times to call you as at this point, the prospect is annoyed and wondering what sort of under the table deal is going on.
What I™m getting at is the fact that most agents really don™t know how to refer. If we are assuming that they do, then we are taking a big risk of never seeing a consistent amount of business in return for all of our efforts.
What can be done? How can you address this issue without offending the agent? Here is a strategy that has worked well for me:
œMr. Agent, one of the things I like to do before things really get rolling is find out exactly how you like to be referred. In other words, I understand that there are several different levels of referring someone. I can promise you right now that I am not one of those persons who hands his client 3 cards and says good luck. In my opinion, this practice doesn™t even deserve to be called a referral.
My goal is to set you up in such a way that my clients know that you are the best choice to meet their needs. Can you tell me in a nutshell what two or three reasons that someone should call you over the 19,000 other agents in St. Louis? (Now I listen to them tell me what makes them unique etc.) Well that's wonderful! Thank you for providing me with this information as it will be a great help when I am telling my clients why they should call you immediately. I learned a long time ago that handing someone a card and just telling them to call rarely results in much of anything. Knowing this I do my best t.communicate the message you want potential clients to know. Now, can we switch roles and I will tell you how I like to be referred.
By placing the emphasis on the agent first, you put them in the right frame of mind. They have an
Opportunity to tell you how great they are, and why they deserve to earn your clients business. Once you are done stressing the importance of giving proper referrals, you switch roles and tell the agent why you are deserving of earning the loan closing.
Another important note here is that this needs to be an ongoing process. Ever heard the saying œout of sight, out of mind? This holds true in this reference. You need to remind the agent from time to time about how much referring you are doing.
For instance, I love to give my agents updates about who may be calling them, and what was said to the prospect. I will call to give the agent a ˜heads up.™ œHello , this is Chad calling from . Hey, I wanted to give you a heads up that a gentleman by the name of Matt may be calling you today. He told me he was looking for a home in the west county area, and I immediately thought of you of course. Here are the details on the situation.
Sometimes a little reminder is all that is needed. I hope you can see the value in taking an approach such as this. It is straight forward, yet it helps your partner develop the habit of referring you business in a consistent and effective manner. Just think of it as teaching your realtor partner how to refer. Once you have done this, your chances of seeing new busines.come your way will improve exponentially.
