Reasons Why You Should Be Known Locally as a Mortgage Lender
It is a great time for local businesses to not just survive but also thrive. As the nation is swept over by new wave of promoting communities, many small businesses had the opportunity to sustain the growing competition posed by multinational companies.
If community growth sentiment can work for them, it can work for you as a mortgage lender as well. After all, clients are more comfortable placing their faith in the hands of a company they can reach out without worrying about time zones.
If you are an overambitious mortgage lender who is yet to explore their backyard, here are some reasons why should bring your focus home.
Avoid New Line of Credit
Anytime your client applies for a new credit card or opens up a new line of credit following submission of their application, it disturbs the debt-to-income ration and affect the credit score. This is especially crucial if your client’s credit score is right on the border and even the slightest change can push it below the edge. The last thing you want for your client is to get a poor interest rate on their mortgage. However, in case of unforeseen expenses where your client has to withdraw money from their home’s equity line, then they need to inform the loan officer immediately. At the same time, you and your client will be required to show supporting documents and information about the new lender. This information is then passed on to the underwriters to keep the loan application on right track.
Bring Prosperity to the Local Community
Studies say that when people spend their money locally, it brings more prosperity for the community. The business that operates locally creates jobs and expansion opportunities. When the residents and the society thrives financially, it helps in growth of the housing market too.
Know Your Borrowers
Living in the internet age is like a double-edged sword. On one hand, it is possible to connect with people who live halfway across the globe. At the same time, it is hard to establish the identity or the credentials of people you are dealing with. The key to efficiency in any business lies in knowing your customers. Dealing with local clients allows you to not only perform exhaustive due diligence and reduce risk, but also build trust and loyalty of your clients.
Offer Personalized Service to your Clients
The borrowers who can contact their lenders easily are the ones they are likely to do business with. Mortgage processing is a long and complex task. Knowing that help is always just a phone call or street away can be a big factor in choosing the local service provider. It is also an opportunity for you to provide personalized service to each of your client and build a long-term relationship with them. Meeting your clients face-to-face and asking all the questions in person can make a huge difference in expediting the lending process.
You Understand the Local Marketplace
Real estate agents and home sellers/buyers often find local lenders more appealing because they know the market they are dealing with. Most importantly, the filing process becomes much smoother when you are working with someone who is easily accessible. When you are the local mortgage lender, you can help your clients with quick loan handling as well as faster closing, gaining their trust in the process. These two elements can be the deciding factor for people who are in between offers and looking to zero-in on one.
Word of Mouth Business
It is relatively easier to earn reputation in a small community where your clients work as your brand ambassadors. When you go out of your way to offer high quality service to each of your patrons, they are sure to recommend your services to their friends and relatives. This can easily translate to more business, without you having to spend an extra penny in advertising yourself.
The success of any mortgage lender lies in closing loans effectively and in timely manner. For a lender to work efficiently, their backend support must be strong. If you are looking for a reliable backbone for your business, then Expert Mortgage Assistance is what you need. Their team of skilled professionals understand the mortgage lending environment like the back of their hand and provide steadfast expert service to all its clients.