Mortgage Broker Ping Pong - It's the Interest Rate Game - Do You Know How to Play to Sell?Posted by Alexander Finch on May 25th, 2021 As a mortgage broker, you are certain to enter the ping-pong monthly interest game. Are you prepared which means you reduce your probability of losing the sale, without losing your commission concurrently? Let ensure by studying the all too familiar scenario. A mortgage loan officer quotes a potential borrower the most effective rate available at the period. The broker has answered every one of the questions and concerns of his / her clients and disclosed every one of the relevant points. files.fm/f/wujvwhf2c has explained the weaknesses inside borrower's loan application and guided and helped the borrower(s) to settle those issues. The broker also assisted the borrower in having the right paperwork, helped them steer clear of the usual pitfalls and assisted them in piecing together a precise and complete loan file. click to find out more submits this loan with a lender after discussing with the borrower the issues for choosing that lender. Subsequently that loan commitment is obtained. Equipped using this type of loan commitment, the borrower proceeds to look for a property. After a few months, even months, he, she or they serve them with the correct property. The mortgage loan officer now assists the borrower with assorted issues, assists them identify legal counsel or perhaps a notary public and protects other outstanding issues. A month or so, often even days before the completion date the borrower visits his or her bank and either intentionally or unintentionally inquires in regards to the bank's interest. The well-trained bank employee probes and finds out the interest rate from which the borrower's loan has been approved. Magically, at that moment, a lower rate is provided to that borrower. Borrower informs the mortgage broker regarding the lower rate and threatens to take his, her or their business to the bank for the reason that same bank that the borrower failed to bother asking before is now offering a number of basis points less in the rate of interest. The frustrated large financial company succumbs towards the pressure, very often quitting his or her own finder's fee to purchase the interest rate down for that borrower, only to find out that borrower went back for the bank and negotiated even a lesser rate. try this site could be the ping-pong interest rate game. It's a casino game that many lenders lose. Strictly speaking, there is not anything wrong with this particular process. Banks make position that they are liberated to offer special discounts to achieve business. And borrowers feel in their rights to learn the ping pong interest game to avoid wasting what usually amounts to just a number of dollars. Begin with constructive strategies right away with the mortgage loan search. There aren't magic pills just for this one. The answer, if there is one, it is based on full and complete disclosure at the start of your company relationship and insisting with an unequivocal agreement through the borrower to exercise these kinds of situation. There is little a large financial company can perform of a system that enables financial institutions to undercut the competition after they become aware with the competitor's price. Is it fair? Of course it is not. It is my experience that most people are well meaning, reasonable, and ethical folks. I have found that by outlining this potential scenario upfront and having a commitment from clients at the start in the relationship helps tremendously. Take the time to show your web visitors the many types of mortgages and also the restrictions and limitations which can be included in those mortgages. Explain how most banks aren't obliged to describe the ins and outs of such varieties of mortgages that may 't be advantageous to your clients or that take away their freedom to produce prepayments etc. Is video 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 |