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This week, I closed down my online application site–probably permanently, I don’t know. If I do one again, I’m going to try to roll my own, and have my own stuff spit out an ap that my machine can take. But–if I’m going to be as committed as I am to offering Ten Day Service, then there is little place for the online ap.

There are efficiencies to be gained from it–to be sure. Addresses are spelled right when the borrower does it, and it takes less time, overall. However, it deprives me of things I am not willing to let go of:

1. Connecting with my customers: Look, I can’t connect with people, get to know them, get to hang out with them if I shove them off out to the online process.
2. Spotting things that will pop up in the process: A lot of times, there is no place to put in factors–such as a massive salary increase–or decrease–or the fact that their grandma is really the one on the assets…if it’s done online.
3. Seeing what the customers want: The customers are going to want to have a program that matches them. Fixed? Interest Only? All of these things are questions that we have to figure out, and we don’t have a chance to see what they are nervous or excited about.
4. Explaining their role in my process. Online, people think that they’ve done a lot of work when the apply. They think that they are now entiled to make me perform . If they take an application in person or over the phone, they don’t feel like they’ve done the work, they feel like I’ve done the work. This is an important distinction.
5. Selling- Actually selling the result can’t happen online. You can’t explain “Why you” you’re just another anonymous form to fill out.
6. Setting correct expectations- People who start the process online think that their part is done. We have to explain that there are 4 steps: application, underwriting, conditions, and closing. They have to expect conditions 100% of the time.

I’ll probably bring some benefits to online aps back, but the $40-100/month services that perform this task are no substitute for the human and intelligent part of what I do.

Making the high touch Real estate world go faster, without sacrificing service can be a bit tricky. Nobody likes to feel rushed, but the reality is that time is ticking and there are many priorities to get accomplished. It’s possible to increase the efficiency and the standard of care that we perform.

If so, then.

We send a good amount of email that is just requesting information, and depending on the outcome, we need different–and predictable–actions.

A typical exchange with the title company:

Me: Did you get the payoff back?

Them: Yes.

Me: Can I see an updated statement?

Instead, it would be more efficient to say: Did you get the payoff statement? If so, then send me an updated statement. If not, then please tell me when you expect to get it, and email/fax when you can.

This saves steps, and increases client care. You’d think it was common sense, but it’s really not.

Useful Voicemails–not just “call mes.”

I don’t know how many times a day I get a voice mail from a Realtor or vendor. “Hi, Chris, it’s Steve. Call me back at 614-555-1212.” I don’t know how often I’ve left it. We don’t want to pack people’s Voicemail full of information they can’t use. But, a lot of times it’s a simple quesiton:

Hey, Chris, did the appraisal come back.

Hey. Chris, what loan to value do I qualify for?

Leaving a voicemail that closes the loop shaves time and uncertainty off of our closings–instead of asking for a call back, it’s more efficient to move the transaction forward when we do this. Some times this can be encouraged by adding: Please let me know what information I’ll need when I call you back.

Systematic, automatic updates.

A lot of times in our business, Realtors will call asking for a status update. They call when they are in need of information. What if they had an a emai every day updating them of the status, and the next step? That’s what I do on a daily basis. The call is coming in anyway. Its almost inevitable. So why not schedule the calls first thing in the morning, as a routine.

I send emails:

We’re still waiting for information from underwriting. The file is 5th in line, so we expect to get it cleared by 5pm today. I will email you at the end of the day and let you know if there are any changes.

For me, the next step is to further systematize this process.

Next: How being thorough saves time and money.

Our industry is getting slower. Underwriting turn times are taking LONGER, service to Realtors and other professionals is getting WORSE. I was more frustrated with my own performance than anything else; little issues plagued us that nobody previously had taken responsibility for. In June of this year, I started collecting information on EVERY loan. What went right. What went wrong. What cost us time.

I closed several dozen loans since then, and decided that “most programs,” wasn’t going to be my niche. Neither was “lowest rates,” or even, “send me your crap credit scores.”

I wanted to be fast. Faster than anyone because I realized that there was a huge correlation between how much the customer liked me than how quickly their loan got cleared to close. So instead of being casual about it, I worked with Mike on a process that guarantees me rapid-fire-results. Here’s what we need to make it happen:

1. Owner Occupied Only. I still occasionally do non owner occupied loans, but there are a TON of problems that can come up. I don’t solicit them because I can refer them to another loan officer in the company and save me some time.
2. Mostly Purchases. Remortgages are great, but I’m more interested in purchases because they have motivated people working together to get a loan closed.
3. Good title companies Only: A lot of times, especially with big brokerages and their in house title company, there are major service issues. I got a title commitment that had a series of IRS liens on it in October, and another one missed a divorced spouse’s signature. Also, in house title companies average a TON of time.
4. Committed Appraisers: I don’t want the “we’ll find the value” specialists, I want the folks that deliver quality work quickly.
5. Committed borrowers: it’s Novel, doing loans that close in 10 days. Having borrowers that respect the commitment, and bring me their documentation helps.
6. Great Real Estate Agents- There are a ton of folks that want to throw a lender under the bus. We can’t work with them. We work with agents that really want their clients to get a good deal.

There’s more of course, coming soon.

Tomorrow: time saving techniques for emails to vendors!

A Realtor’s livelihood is based upon knowing local information and being able to adjust and sell. Being aware of whether a deal is dying, struggling, or sprinting to the finish is paramount to a Realtor’s peace of mind. Therefore, the successful mortgage professional is always one step ahead of the game. This person is able to answer the Realtor’s questions before they occur, if they give a Realtor pertinent news as they get it, the transaction happens much more smoothly. Smooth transactions means referrals. More referrals eventually will turn to referral-based business, which is the ultimate goal of every mortgage professional.

Everyone benefits when parties know things early, from the lender to the Realtor to even the borrower. Even for a borrower that is not necessarily qualified, a quick deathblow to the deal is much more painless that an agonizing wait of days or even weeks. That borrower then can get a game plan for how to align their financial situation to be able to get a loan, and a Realtor is able to focus energy on finding new clients. You’ve now avoided wasted time, and that means money in this industry. Pride yourself on quick, appropriate communication and you will have gained a very useful tool to make yourself more successful in any industry.

Our service isn’t closings “in as few as” ten days.  It’s ten days to close your mortgage for all investor properties.  To be this fast, there are things that have to go correctly:

1.  We have an absolutely EXHAUSTIVE application process. It might seem a little tedious, but we’re GOING to find out if the customer’s 2006 tax returns reflect a spousal payment.
2. We have things that must happen every day; the property must be in contract, for starters–and the title company must offer good service as well.
3. The customer has to provide the usuals:  2 years W2s, Bank Statements, 1040s, Divorce/Child Support paperwork.
4. The appraiser is prepaid. and is committed to inspecting the property in 24 hours, and delivering the appraisal within 72 hours of order.
5. Title must come back by day 5, period.
6. We don’t hold up anything for inspections–so understand that an appraisal fee ($250-350) is at risk.
7. Expect supporting documents: from when we communicate the need to the agents, we have 24 hours to meet the request.
8. Condo association documents are requested day 1, and have to be in by day 7.
9. WE review the hud by day 9
10. Close on Day 10.

This is a stress free-and guaranteed-process.  We will take tomorrow to share the ten things that can derail a good deal.

Chris Johnson

Use the MOST EFFICIENT tools for the task.

In our day and age of Blackberries, CRMS (ACT! or Top Producer, or Outlook), we have overlooked some key, easy and low tech tools. I’m talking about 3×5 (or, if you must, 4×6) cards. I recommend a 3×5 card whenever possible for managing–and working with–your urgent to-dos, your unconverted leads, and your future business areas.

In my business, we only have 5-10 great leads at any given time; we define a lead as someone that hasn’t yet made an affirmative decision to use our product or service. These are the most important folks to the immediate future of our business–from Realtors with a client in mind to other folks, there is nobody that matters more than new customers. So I put some information on the top 10/15 cards.

• Client Name
• Client Number
• Client .Address
• Spouse
• When I got the lead
• A list of dates for calling back.
• Any notes from the conversation.
• Last time I promised I’d call back.

So the options are: put them in a database and set the reminders, or have a card and carry it in your shirt or suit pocket. I recommend staying low tech because this will be ON your person at all times, and you will not have any excuse to NOT call your leads.

And of course, when you call, you gotta execute.

What’s Different?

How about a mortgage lender that has been a (successful) Realtor, markets only to Realtors, and is positioned to meet their needs (10 Day Service, Every Time and On Every Loan). I am Chris Johnson with the Ten Day Team at First Ohio Home Finance. I will be posting at least three times a week regarding Mortgage, Real Estate, customer service, and productive efficiency.

You won’t get a lot of the same old crap.

Just about every local Realtor has some thin reason why it’s a great time to buy. You know, for a particular family, market or situation, that’s possible. There are always good REASONS to buy. But, we’re in the midst of a market correction full of uncertainty and turbulence. Now–more than ever–you need a professional with integrity giving you advice.

Who is this Blog For? (Not the masses).

Primarily, I’m writing for real estate agents, financial planners, and other folks that are “offices unto themselves.” I’ve been a solo practitioner or a self employed person for a long time now, and I’ve learned a lot of different things about sales and marketing (different topics), personal production, goals, customer service, planning, networking, wringing money out of rocks, and surviving a down market. I’m going to write what I’ve done to help with all of those things.

And, yes, i’m going to tell you specifically how we close every loan in ten days. Every time. Ten calendar days on Conventional Loans, and ten business days on government loans.

And of course, there is more to come.