Keep the PERSON in your PROCESS!
As we approach the last 90 days in 2024 to earn money for this year, the urge to automate your communications can be a very costly mistake. Email blasts to your entire database, messages directly to voicemail, and even posts on social media can cost you more than you know. It is NOT a great idea to plant the seed of opportunity in the minds of the people you serve and just HOPE they reach out to you to assist them. While many will, some will seize upon the opportunity and then SHOP the market to often find the best liar on the internet! You MUST make the message personal by personally making the specific offer directly to your client. Only through that personal conversation can you share the message and discover the real needs of your client before proposing how best to take care of their specific situation. Especially when almost every person in the country that owns a home is going to be bombarded by offers to refinance. You must make it personal if you are going to maximize your opportunities.
I just had a case where my client was speaking to one of their clients about the opportunity to refinance. They currently had a VA loan and someone had messaged them with an offer to do a “FREE” VA IRRL and save them about $250 per month. My client engaged in a quick Q&A with their customer and after a series of questions that took all of five minutes, they were able to refinance the client conventionally using a cashout refinance, payoff significant outstanding debt, and lower their monthly payments by lightly more than $1,000 a month. The first lender NEVER asked any questions, never engaged in a discussion, just take the offer or not. The customer wasn’t sure what to do and reached out to their originator to ask for their insight. As it turns out, they were very happy they did!
The lessons here are, you need to be on top of your database by communicating with them LIVE and in PERSON so you can clearly understand the customer’s situation and how lower interest rates might help them. While for some people a simple rate and term refinance is a great deal, for many, recent times may have caused financial pressures that can be better addressed than by simply lowering a mortgage payment! Keep the person in your PROCESS!
Yesterday CPI numbers were close to expectations. Today we see initial and continuing jobless claims as well as the PPI report. These will be the last major numbers before the FED meeting next week and a likely drop in the FED Funds rate. These can all be market moving events and you need to be aware of them. I expect that we will see a cut that will be the first in a series of cuts that will take the FED from a restrictive position and well into the neutral stance before pausing. While this will help long term rates continue to fall, mortgage pricing will improve as these moves will help normalize the yield curve and help improve margins in the future.
As always, if you have questions or comments or would like to book your business planning session, please email me at [email protected]
