34 MAY / JUNE 2019 LENDING / CREDIT In a world where everyone expects instant gratification, it is no surprise that people are turning to mobile apps and online mortgage programs to gain immediate approval – potentially at a lower cost. Lenders who primarily focused on refinance business will not be able to compete in this market without having a solid purchase market share. Your talent will help you shine as a community lender, but that alone may not be enough to win borrowers over in this competitive purchase market. You should focus on what differentiates you from others. Despite how talented and well known you may be within the mortgage industry, you will still have potential clients that shop around before deciding who to work with. If you are not able to offer the lowest prices to clients, what can you offer that will set you apart and allow you to remain competitive? Advantages of a Community Lender You have several advantages over the online mortgage companies of the world. You have flexibility when it comes to tailoring loan programs to fit the needs of your clients. You are also there for your clients – they can put a face to the name and have a trusted point of contact when questions arise during the mortgage process. You are also armed with extensive knowledge that can help potential clients forge a path to homeownership if they are facing adversity. Below are three specific areas that allow you to gain a competitive edge in the mortgage industry: Lending support. People may desire instant gratification, but when it comes to obtaining a mortgage, that may not be the best route. After all, buying a home is one of the biggest investments many individuals will make in their lives, and potential buyers may be uncertain about the homebuying process. You have the ability to be their support system and walk them through Secrets to Mortgage Success In a competitive market Tracy Marks President LenderSelect Mortgage Group tracymarks@ lenderselectmortgage.com LenderSelect Mortgage Group is an associate member of the Indiana Bankers Association. every step to ensure they are comfortable – which likely cannot be said of online lending programs. Providing education. Show potential clients the advantages of working with you – a real person – rather than with just a computer. The fact that potential clients can come to you and have all of their questions answered face-to-face is significant and can set you apart as a loan officer. It is a good idea to have a method in place for qualifying potential clients before they go through the mortgage application process – this will help them understand up front what is required of them in order to obtain a home loan. Offering a diverse portfolio. You can do something many online lending institutions cannot: offer a diverse portfolio that meets the needs of a broad spectrum of homebuyers. Mortgages are not one size fits all, and you have the ability to tailor loan programs for your clients. Often, online lenders will have a limited number of mortgage options from which potential buyers can choose, and there is a chance they may be denied if one or more requirements are not met. Along these lines, you can shine by serving the underserved – those who may not believe they can buy a home because of their financial background. Many people are not aware of the low- to no-down payment options out there, but you have the ability to offer such mortgages to meet diverse needs. Additionally, as a vault lender you can refinance existing debt, whether as a car loan or as a credit card, to help provide a lower debt-to-income ratio. Using Your Competitive Advantages Strategically Though you may not be the low-cost leader, your competitive advantages can set you apart from the rest. But how can you use these in your daily operations to drive awareness to your mortgage business? Digital marketing. In order to outpace the com-
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