How to Earn Referral Business As a Loan Officer

Being a loan officer is not an easy job. As any veteran loan officer will tell you, there are many obstacles you need to encounter before you will close that first loan: rejection, lack of prospects, discouragement, etc.

Before you go searching for referral business, you need to be armed with the right attitude. Here are a few pointers:

• Understand the needs of your clients. Knowing your clients’ needs will give you an idea on the best product that fits their needs.
• Choose a specialty. In the mortgage business, it is important to choose a specialty to distinguish yourself from the competition. This also allows you to become an expert in one area of product knowledge.
• Set a goal. For instance, you can ask yourself, “How many loans do I need?” If you need ten loans a month, then you need ten people who will send you at least one loan a month. Your goals must be realistic.
• Manage your prospects. You should know who is available for business and who isn’t. Follow up with people who will talk to you. Never sell to people who are not interested.
• Manage your time properly. Your weeks should be planned in advance. This is possible with the help of an organizer or other software. Your days should be spent with a goal in mind. You should set appointments.

With the above in mind, the next thing to do is to learn how to earn referral business. Earning a referral business is not so difficult at all. It is based on this simple premise: if you provide others with referrals, you earn referrals in return. To yield better results, you must send more than enough quality referrals to others. Your goal must be to become a “referral clearinghouse,” which means you must become a “go-to person” for a referral to anything in the professional world. Becoming a referral clearinghouse is not only limited to the mortgage business. Your scope should extend to other industries, such as law, interior design, carpentry, etc.

Once you have your list of preferred referral partners, inform your database through a simple letter that you are now their new referral clearinghouse. Explain in the letter, as short and as sweet as possible, that you believe in the process of referrals and that you would like to offer your services as a referral provider. Include in the letter the industries that you have provided referrals for, but without mentioning any name or contact information.

This strategy is very helpful in many ways:

• The letter gives your clients a reason to contact you. When this happens, you are given the opportunity to introduce yourself and your business. If any of your clients’ friends or relatives need mortgage advice, then you will be the first person that will come to your clients’ mind.
• Since you’re not directly selling your product to your clients, they will value you more as a person and will refer you to anyone they know who needs mortgage advice.
• There is a possibility that you will earn more referrals from new potential referral partners. If you provide quality referrals to your fellow business professionals, then they will do the same to you.

When you become a referral clearinghouse, people will know you through word of mouth. Either of these two things will happen: they will contact you or they will give you a valid reason to contact them. Either way, one thing’s for sure: it means there is more business for you.

References:

Banker Resource:

http://www.bankerresource.com/articles/view.php?article_id=644

Josh Harmatz is the Chief Operating Officer for Voyage Financial Mortgage, Inc. and has worked in all capacities of the lending business throughout the last seven years.

He is an Honors graduate from the School of Business at Sacramento State with both a BS and an MBA. He believes his higher education is the cornerstone of his success.

He operates his mortgage business with the highest integrity and a strong work ethic, while building reliable relationships with all of his clients. He is committed to his vision of improving business operations through technology, education and trust.

Author: Josh Harmatz
Article Source: EzineArticles.com
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