Mortgage Broker Ping Pong - It's the Interest Rate Game - Do You Know How to Play to Sell?Posted by Reddy Thomasen on May 14th, 2021 As a mortgage loan officer, you are sure to enter into the ping-pong rate of interest game. Are mortgage broker epping prepared so that you reduce your probability of losing the sale, without losing your commission as well? Let be her explanation by looking at the very familiar scenario. A mortgage broker quotes a potential borrower the top rate offered at that point. The broker has answered all of the questions and concerns of his / her clients and disclosed all the relevant points. The broker has explained the weaknesses within the borrower's loan application and guided and helped the borrower(s) to resolve those issues. The broker also assisted the borrower in getting the right paperwork, helped them prevent the usual pitfalls and assisted them in piecing together a precise and handle loan file. The mortgage broker then submits this loan to a lender after discussing using the borrower the causes for picking that lender. Subsequently that loan commitment is obtained. Equipped with this particular loan commitment, the borrower proceeds to consider a house. After weeks, even months, he, she or they serve them with the right property. The mortgage broker now assists the borrower with some other issues, helps them identify an attorney or even a notary public and protects all the other outstanding issues. A couple weeks, occasionally days before the completion date the borrower goes to his or her bank and either intentionally or unintentionally inquires regarding the bank's rate of interest. The well-trained bank employee probes and finds out the rate of interest at which the borrower's loan has been approved. Magically, on the spot, a lesser rates are agreed to that borrower. Borrower informs the large financial company concerning the lower rate and threatens to adopt his, her or their business for the bank as the same bank that the borrower didn't bother asking before is now offering a number of basis points less within the interest rate. The frustrated large financial company succumbs towards the pressure, very often giving up his or her own finder's fee to purchase the speed down for your borrower, only to discover that borrower went back to the bank and negotiated even a reduced rate. That is the ping-pong rate of interest game. It's a sport that many lenders lose. Strictly speaking, there's not anything wrong using this type of process. Banks make position they are free to offer special discounts to realize business. And borrowers feel within their rights to learn the ping pong rate of interest game to avoid wasting what usually comes from just a few dollars. Begin with constructive strategies right away with the home mortgage search. There aren't any magic pills for this one. you could check here , if you find one, it lies in full and finish disclosure at the start of your company relationship and insisting while on an unequivocal agreement from the borrower to see this type of situation. There is little a large financial company are capable of doing with regards to a system that enables financial institutions to undercut competition after they become aware of the competitor's price. Is it fair? Of course it isn't. It is my experience that a majority of individuals are well meaning, reasonable, and ethical folks. I have found that by outlining this potential scenario upfront and achieving a commitment from clients at the start in the relationship helps tremendously. Take the time to tell your web visitors various varieties of mortgages as well as the restrictions and limitations which might be built into those mortgages. Explain how most banks are certainly not obliged to describe the ins and outs of those kinds of mortgages that could stop advantageous to your clients or that remove their freedom to create prepayments etc. Is mtss is a foolproof solution? Not really. However it significantly enhances your odds of retaining clients you've worked hard to serve rather than losing the sale when faced with this ping-pong match.Like it? Share it! More by this author |