In a highly-competitive lending market, with interest rates skyrocketing, clients are shopping for the best lender. Interestingly, the “best lender” does not always mean the one with the lowest rates. In fact, it rarely means that anymore.
Most lenders offer the same rates, and there are thousands of lending companies to choose from. So, how can you be competitive in a market this saturated, with high-interest rates and housing prices climbing? Easy. You make sure you provide the best borrower’s experience possible.
Why the Borrower Experience Matters
The United States and the rest of the Western world have entered into a service economy. In the last few decades, a large percentage of the workforce has shifted from manufacturing jobs to service jobs. And in the last 10 years, as artificial intelligence has evolved, service has become more important than ever. It is all well and good that robots take over manufacturing and technology performs simple tasks for us. But people still need people.
More than that, people still want to speak with real people. Study after study reveals the truth: consumers highly value customer service. Customer service means human interaction. This reality means that while you may not be able to compete with pricing, you can compete with service. You can be present, kind, and available, and make the lending process easy for your client. When you provide top-tier service, you get word-of-mouth advertising. That’s better than anything you could pay for. You also get return business. Here are some tips to help.
Get to Know Your Clients
Remember that note about human interaction and people wanting people. Well, they don’t just want any old person to help them out. They want a personal experience. Many businesses claim to treat their clients “like family,” but few of them do. Sit with your clients, get to know them, and ask about their lives and what matters to them. The better you know your client, the better you can make their experience worthwhile. Get good at listening.
As you get to know your clients, take the steps to build a relationship. Earn their trust by being honest and transparent. You want the client to feel warm and welcome from the very first interaction with you. If their first engagement with your business is online, call to follow up. If you say you’ll get back to them, do it, and do it quickly. Also, don’t try to fake your way through an answer. If you don’t know, say you don’t know, but you’ll find out. Then do that.
Set Expectations Up Front
A large part of building a trusting, lasting relationship that gets you return business is setting expectations. Be realistic with your clients about the lending process. One of the first steps you can take is to offer income verification. Then, discuss their assets, their budgets, and their goals. These initial parts of the lending process help you and your client understand what you’re working with. You have all the cards on the table.
Now, you get to walk your client through what will happen next. As they shop for houses or if they already have a dream home in mind, they will return to you for help. You can offer prequalification and various lending options and discuss the costs and benefits of each option. Remind them that they can always change their minds and that you are here for them every step of the way. These early days in the lending process set the tone for the entire journey.
Keep Your Process Streamlined and Updated
Along that journey, you want to make sure your borrower’s experience with paperwork and technology is as streamlined as possible. When you need forms filled out, send the client everything at once with a detailed explanation and give them time. Send the forms online, and encourage your clients to look through each page. When you take this approach, you create a relaxed and streamlined process. You take the stress off the client.
To offer this kind of streamlined service, you will have to ensure your technology is up-to-date, mobile-friendly, and fast. The last thing you want is a client trying to work through forms only to have your site crash. Most people prefer to manage tasks on their phones or tablets, so make that easy. This is where technology comes in and supports the human experience. It is your job to harness that technology for your clients.
Be Available, Educate, and Communicate
Even when those forms are complete, the prequalification is in, and your clients are off shopping, be available. Call your client regularly to check-in. If they call you, call them back. Educate them on the process as it is unfolding. When they find the house they want and make an offer, walk them through what happens now. People want to feel knowledgeable about their experiences, especially when they are borrowing hundreds of thousands of dollars. Explain everything.
Get clear with your client on what their interest rate means for their mortgage payment. Walk them through the difference between putting more money down and having more cash reserves. Help your clients see their way forward as borrowers, so they feel strong in their decision to borrow with you. You can rarely give your clients too much information about their borrowing process.
Follow Through and Follow Up
When everything seems said and done, don’t just walk away; follow through. In lending, follow-through means being present for the closing process. While your client has dozens of pages to go over and sign, be there for them to explain anything. Even if you’ve said it before, this part of borrowing is one of the hardest. It is the butterflies in the stomach part. Be there to reassure them they made a solid decision they can be excited about.
Finally, follow up. They’re in their house now and so excited. Show up for them in their new adventure. You can do this with a call, a kind note in the mail, an email, or even some flowers as a housewarming gift. Every little attention to detail counts and keeps you in their minds whenever lending comes up in the future. If you’ve done a great job, don’t be afraid to ask for referrals and reviews. They will appreciate you so much that they will be thrilled to sing your praises. And that’s how you’ll know you provided an amazing lending experience.