Loan Officer Sales Training 06/10/24: Mortgage Sales Cycle

In this episode of "Loan Officer Sales Training," we take a comprehensive look at the mortgage sales cycle—a critical process that every successful loan officer must master. Join us as we break down each stage of the cycle, from lead generation and initial contact to application processing, underwriting, and closing the deal.

Our host will provide actionable tips and strategies for effectively managing each phase, ensuring a smooth and efficient journey for both you and your clients. We'll discuss best practices for nurturing leads, building strong client relationships, and overcoming common obstacles that can arise during the sales process.

Whether you're new to the industry or looking to refine your skills, this episode is packed with valuable insights to help you enhance your sales techniques and close more deals. Tune in and elevate your mortgage sales expertise to the next level!

For more episodes visit:
https://themortgagecalculator.com/Page/Loan-Officer-Sales-Training-Podcast

About The Mortgage Calculator:

The Mortgage Calculator is a licensed Mortgage Lender (NMLS #2377459) that specializes in using technology to enable borrowers to access Conventional, FHA, VA, and USDA Programs, as well as over 5,000 Non-QM mortgage loan programs using alternative income documentation! 

Using The Mortgage Calculator proprietary technology, borrowers can instantly price and quote thousands of mortgage loan programs in just a few clicks. The Mortgage Calculator technology also enables borrowers to instantly complete a full loan application and upload documents to our AI powered software to get qualified in just minutes!

Our team of over 350 licensed Mortgage Loan Originators can assist our customers with Conventional, FHA, VA and USDA mortgages as well as access thousands of mortgage programs using Alternative Income Documentation such as Bank Statement Mortgages, P&L Mortgages, Asset Based Mortgage Programs, No Ratio CDFI Loan Programs, DSCR Investor Mortgages, Commercial Mortgages, Fix and Flip Mortgages and thousands more!

Our Mortgage Loan Originators are trained to be loan consultants to guide borrowers throughout the entire loan process. A licensed Loan Officer is only a phone call or zoom meeting away and always available to assist borrowers throughout the loan application process all th

The Mortgage Calculator is a licensed Mortgage Lender (NMLS #2377459) that specializes in using technology to enable borrowers to access Conventional, FHA, VA, and USDA Programs, as well as thousands of Non-QM mortgage loan program variations using alternative income documentation!

Using The Mortgage Calculator proprietary technology, borrowers can instantly price and quote thousands of mortgage loan programs in just a few clicks. The Mortgage Calculator technology also enables borrowers to instantly complete a full loan application and upload documents to our AI powered software to get qualified in just minutes!

Our team of licensed Mortgage Loan Originators can assist our customers with Conventional, FHA, VA and USDA mortgages as well as access thousands of mortgage programs using Alternative Income Documentation such as Bank St

Episode Transcript

Restream recording Jun 10, (00:00):
I'm going to keep it pretty short
today, but it's definitely agreat topic to go over here now,
especially for newer loanofficers that may not know some
of these statistics.
So let's go ahead and go throughit.
So today we're talking about themortgage sales cycle.
Now, what I mean by that.
They could kind of mean twodifferent things, right?
The sales cycle one time withone sale, right?

(00:23):
And how long that takes to gothrough the cycle.
But really today, what we'retalking about is the cycle that
a client goes through in life,meaning purchases, refinance,
purchasing a new home, right?
There's, there's a cycle thathappens with clients.
So let's go ahead and talk aboutit.

(00:46):
So here are the stats.
The average American buys a newhome every eight years.
Right.
And they refinance on averageevery three to three and a half
years.
So you're looking at threetransactions every eight, nine
years per client, you know, onapp.

(01:08):
And so, you know, that'simportant to keep in mind.
We're not just getting a clientfor one transaction.
We're getting a client.
For tons of transactions and asyou can see right here, the
statistics tell you that you'reprobably going to get about
three transactions every maybe8, 9, 10 years from each client

(01:28):
and for us here at the mortgagecalculator, especially we're in
this for the long run.
We're not here to get richquick.
So we're trying to get theseclients for now.
Investors obviously areconstantly buying, constantly
refinancing to buy moreproperty.
So those stats up at up top arefor primary homes, right?

(01:52):
But.
At the mortgage calculator,especially we deal with so many
investors.
That's what's so great about itis that they're always buying
and refining and selling and tobuy a new home and refinancing
this one to buy another one.
And so the investors are greatto work with, especially because
investors are still going to bedoing that activity, even when

(02:12):
the rates are high, right?
That, you know, that's what.
Gets us through the hard times.
It's having investor clientsthat we're serving their purpose
by they're still getting theirtransactions done and making
money.
It doesn't matter what the ratesare, right?
They're gonna, you know, we'regoing to help them figure out a
way to make their deals happenfor them to make money.
So investors is a wholedifferent story right now.

(02:36):
It's kind of, blocked here.
Actually, I need to.
Change this wrong graphics uphere.
There we go.
Oh, now it works.
Okay.
So a lead is forever, right?
And a client is for life.
So we talk about this a lot.
the, the whole elite is forever,motto there, but a client is for

(02:57):
life.
And this is exactly what we'retalking about here.
Every eight, nine, 10 years,you're ending up with three
transactions.
So, you know, 20 years, 30years, we're talking about
three, six, 9, 12, who knows howmany transactions you're going
to do for the same person.
over time, especially if we'redealing with investors.
So just make sure we have theright mind state, especially for

(03:20):
the newer loan officers comingin to the business,
understanding that that's howthis works.
You're gaining clients for life,and then you're turning those
clients into referral earnersthat are referring you business
for life and then continuing theprocess with whoever they refer
you to.

(03:40):
So when we're discussing, youknow, with our clients,
especially the, you know,initial phone call, maybe second
phone call, and we're askingthem what they're looking to do,
we're not just going to betalking about their short term
goal, which is the immediatething, right?
Obviously, why did you click thead?
Why did you contact us?
What is it that you're lookingto accomplish right now?

(04:02):
But also let's talk about it.
Thank you.
The long term goals, because wewant to look at that as the
average person is going to dothose transactions.
So we should be talking to ourclient about when and why they
are going to want to do thosetransactions and how we're going
to help them do thosetransactions.

(04:23):
Do they have a plan?
Do they want to?
Move into a bigger home, youknow, maybe in three to five
years, they think they're goingto get a raise.
So then they want to save allthe equity they can and then
refi out of it, you know, andthen use the cash to put down on
either an investment property ora new home or whatever the case
may be.

(04:44):
Right.
We're going to talk to them.
What is your long term goal?
So that as a mortgageconsultant, we can consult them,
excuse me, on how the mortgagepart of that, right?
They can talk to the realtorabout buying a home as a
mortgage professional.
We're going to consult themthrough, look, are you looking
to buy investment propertiesmaybe and build your wealth and

(05:06):
your portfolio?
Or are you looking to upgrade?
To a bigger home because thisisn't really as big as you want.
You didn't get the home youwanted.
So our plan is in three years tofive years, buy a new, even
bigger home.
I mean, these are things wherenot only are we consulting them
on the process, not only are wetalking about maybe refinancing,
uh, to get off PMI orrefinancing for a lower rate or

(05:29):
refinancing to get cash out topurchase an investment or a
home.
Or a home, right?
We're not just talking to themabout those things.
We're talking to them abouteverything.
Okay.
Well, if you're going to get alarger home in five years.
We're also going to need moreincome.
Is that going to be, you know,happening or if, you know, if

(05:50):
their credit isn't that great.
Okay.
Well, then over this time, let'sget your credit improved so that
we can actually buy that biggerhouse.
Because right now, with yourincome and your credit, even if
you had a bigger down payment,we wouldn't be able to get.
The home that you want, right?
So now we're consulting themthrough what is the actual plan
to accomplish their goal.

(06:11):
So just keep in mind, we are nothere to do one transaction.
We're not here to sell loans.
We're here to help clients.
And accomplish their goals.
Now, if we don't even ask themtheir goals, then what are we
doing?
Right?
Yes.
Talking to them about the onetransaction that they clicked on

(06:31):
the ad for that they needimmediately, immediately right
now.
Sure.
We can help them out with that.
But did we really do our job asa mortgage consultant, knowing
this borrower is going to do onaverage, the statistics, the
statistics tell us threetransactions every eight, nine
years.
Did we do our job of consultingthem through all of those

(06:52):
transactions?
Did we do our job at setting upthis transaction to properly
meet their goals in the future,right?
It's not just about, hey, youknow, after we do this one,
let's talk about whatever yourother goals are.
Well, no, we have to, what ifthis loan has, you know, Affects
what they're looking to do inthe future where plenty of loan

(07:14):
products would do that.
There's plenty of situationswhere you could put them into a
loan product that iscounterintuitive to their goal
in the future, solves theirshort term problem, but does not
accomplish their long term goal.
So if we're not asking themtheir long term goal, if we're
not planning these things out,then we can't really properly
assess their current situationthat we're trying to deal with.

(07:37):
So you see how it's veryimportant here.
To, you know, Jose talks a lotabout how important that
interview is with the borrowerand asking questions.
And a lot of loan officersaccomplish half of this, which
is asking what their goal isright now.
But the other half of loanofficers never actually ask
what's your long term goal.

(07:58):
Because I'm here to consult youthrough the entire process.
Tell me where you really want toend up.
Or what we're really looking todo over the next 10 years.
And let's break it down fromthere and talk about the best
way to get there, which mayinclude us choosing a different
loan product right now to setourselves up in the future for
what we're looking to do.
Different loan product,different LTV, whatever it may

(08:18):
be.
Things can change depending onwhat we're planning to do in the
future.
Right now, here's an examplescenario.
Just, you know, the, the cycle,right?
Somebody purchases a home.
Let's say they're a first timehome buyer.
Let's say they purchase a homelater.
We refinance them to remove PMImaybe.
And again, this is different foreverybody.
Just an example here.
And then maybe later we cash outthree years later.

(08:40):
Something like that.
They have more equity and we doa cash out and we purchase an
investment property for themwith a DSCR loan.
All they need is what 50 grandor something to get a, you know,
20 percent down on a nice littlerental property for them to have
to start building their realestate portfolio and building.
their wealth, or maybe they'relooking for cash out so they can

(09:01):
start the process of finding thenext primary.
Maybe it's a bigger one.
You know, whatever the case maybe, we need to know what they're
looking to do, and you'll seethat they can go through this
process, and then they're goingto repeat the process.
They buy a new, bigger home, andthen they're eventually going
want Refinance that to eitherremove the PMI or to get cash
out or to lower the rate.

(09:22):
And then, you know, again, wecan talk about buying
investments or a bigger one.
It just, it doesn't stop.
Right.
The statistics are real.
This is actually what'shappening in America.
So if you're on the sideline andonly worrying about one
transaction, you're missing thewhole thing, right?
These, this is actuallyhappening.
So every loan officer, that's atrue loan consultant that gets

(09:44):
clients for life.
Those are the transactionsthey're getting.
This isn't an abstract thing.
Those are the numbers.
Every single loan officer, well,not everyone, but on average,
every loan officer that has aclient for 10 years is getting
those transactions.
So we just have to make surethat we are going to have our

(10:04):
clients for life for the longterm.
And the best way to do that isto ask them, what are your long
term goals?
So I can help you get there andwe can plan for that.
So again, uh, wanted to keep itshort here today, but just, just
know it's probably about 50 50.
I think 50 percent of loanofficers, you know, ask what

(10:25):
their goal is for now.
Okay.
But I think half of the peopleare missing the boat on asking
their long term goals, planningaccordingly, and remembering
that this isn't an after thetransaction discussion.
That's, this isn't a discussionto happen after the transaction
that's at hand.
This is a discussion thathappens up front because it very
well may affect the way you goabout the transaction at hand.

(10:50):
And one more important pointhere, the client is a client.
They're not a licensed loanprofessional.
They do not know what type ofloan programs are out there or
how loans work.
That is our job.
So a client could tell us thatthey're looking to do something,

(11:11):
but if we don't know their goal,I guess what I'm trying to say,
they may tell us they want to dosomething because they think
that's their goal.
They think that's going toaccomplish their goal, but they
don't know, right?
We want to find out what they'rereally trying to do.
Then we can figure out what's,you know, the best thing.
They might say they want X, youknow, whatever loan they'll go.
I want this loan.

(11:31):
I want this loan.
Okay.
Well, let's look, maybe we don'thave to go with that loan.
Maybe there's a better one atthe end of the day.
Again, they don't know what'sout there.
They don't know the programs.
They don't know how things work.
It's our job to consult themthrough.
So you can't just, you know,Take their word for it of, Oh,
here, I want to do only this andthis is for the transaction
right now.
That's all I'm worried about.
Okay, well, let's step back fora second.

(11:53):
Let's talk about what's yourgoal here with this transaction.
And then what's your long termgoal?
And let's make sure that we'reon track to meet both targets.
So I don't see any questions inthe chat.
I think we'll wrap it up.
But, the big thing, justremember these stats, this is
actually happening.
So if you're not in it for thelong, the longterm, if you're

(12:15):
not getting clients for life, ifyou're kind of burning through
people and just doing one dealand not following up and you
know, all that kind of stuff,right?
Then you're, you're missing theboat here.
This is, this is the real dataof what's actually happening.
And, obviously when rates diplow, like they did, then you'll
get a flood of them and there'llbe even more.
But on average, this is what'shappening out there.

(12:35):
So go out there, get theclients, consult them on the
entire process.
What's their long term goal?
How are we going to get there?
And let's walk them through allof these transactions that
they're inevitably going to dowith or without us.
Let's make sure that we're theperson that they're doing it
with all of the transactionswith, because we've consulted

(12:57):
them through that whole process.
If you just let them go off towhoever else is going to get
them for the next transaction,but if you've already planned
this with them.
They're going, they're callingyou to do the next trip.
You already set this up.
We planned, this is our plan.
I'm calling you back and saying,Hey, I'm ready to move forward
on the plan.
I've been staying on the plan.
Right.
But if not, then they're justkind of up in the air and we'll

(13:17):
go with anyone.
So it's our job to make sure welock them in for life, consult
them, find out their longtermgoals, and, uh, you know, just
make sure to accomplish them andconsult them and make a plan.
And if you make a plan withthem, they're not going to be
going elsewhere.
All right.

(13:38):
The question here in the chat ismissed.
Most of this will be uploaded.
Yeah, absolutely.
It'll be on YouTube right now.
so you can actually watch itfrom the beginning.
So thank you everybody fortuning in.
Appreciate it.
Remember we're doing this everyMonday now.
So every Monday at 12 PM Easterntime, we do this sales training.
So I appreciate everybody tuningin.
We'll see you next Monday at 12PM Eastern for the next episode

(14:00):
of the loan officer salestraining with the mortgagor.