Well folks, we are one year into the pandemic and boy what a year it was for for the mortgage business. Across both borders, we could not have anticipated what happened after the world locked itself down. Epically low rates combined with bored at home American and Canadians, layoffs, furloughs and more, fuelled a pent up refi demand not seen in generations. From paying off debts, to renovations, to taking out equity to stave off taking advantage of mortgage deferral programs the mortgage industry ran rampant. Then, as quickly as the refi’s came on, so too did buyers, bored with their current homes, coming out in force and bidding $100k and in some cases up to $250k over asking price. Unreal.
Now, we at Mortgage Magnates are not prognosticators, just educators. So we are not here to predict what the market will look like but we can tell you this, there will be a slow down. The slow down will be significant and it will affect your business. Why? Well the market is now flooded with new mortgage professionals riding out this wave of fun and frivolity, but just like what often happens to an over populated flock of geese or deer, in a short while there may not be enough food to eat. At least not that will come as easily as it does today. It’s out there, you don’t have to leave the industry but you will now have to be good at it. You’re going to now have to find hunt your food again. You’re going to now have to call on your sales and prospecting instincts again. Also….BREAKING NEWS, lead generation companies will get you nowhere fast so don’t look to those magical golden InMails to keep the runaway mortgage truck hurtling down the mountain.
So what now?
The answer is simple, but some of you aren’t going to like it. You’re going to have to learn again. You’re going to have to sharpen your skills and out awesome the mortgage pro down the street. You’re going to have to leverage your technologies to their fullest extent and create a value proposition your clients will rave about to friends and family to keep them coming your way.
Now some of you are thinking, “here comes the shameless plug for Mortgage Magnates”. Nope. We know what we have and what we offer. Should you choose to ignore it, that’s on you. Instead, here are 6 actionable tips you can use right now to prepare for the inevitable slow down.
A true entrepreneur knows their business inside and out, past, present and future. You got into this to be an entrepreneur, time to run it like you own it. Because you do.
Take a long look back at the last year. Every closed deal, every decline, every deal you helped use a deferral program. Who are they? What did the deal look like? Did you forget to ask for a referral? What is the exit strategy for that deal into the next deal for the client? Look into their life changes during the pandemic. Were they a first time home buyer 2 years ago, got laid off and now have a job even better than they had pre-pandemic? If so, is a housing upgrade in the offing? Should it be? Why don’t you reach out?
See, your existing base is likely a small gold mine waiting to be discovered, but you need to dig deep down into it. No miner in the gold industry walked up the mountain, looked around once and found all the gold. Time to start chipping. The feeling when you find it will be out of this world.
2. Be of Epic Service
Your clients and let’s face it, the world need(s) you more than ever and it is what is going to set you apart in any slowdown. With clients, reach out, check in. Say hello. Offer to explain their rate again and how the crazy bond market may change things down the road. Explain what their accelerated payments are doing for them. Find and give them value and always be visible and of service.
To the world, get involved. What can you do to help those in need? Never joined a club? Join a club! Never volunteered? Volunteer. Find a passion for giving back and execute on that passion. The referral doors that will open will be incredible, but most incredible is how you will be making the world a better place while you’re at it.
3. Be Different In Your Market
You don’t need to dump thousands of dollars into radio commercials or bus stop benches. If you do, say goodbye to the extra commissions you earned last year. Slow downs are ripe for the marketing vultures, don’t buy in.
You can have a presence much wider than any bus bench on social media when done right. Get into video. Follow Alec Hanson who appears on Mortgage Magnates for tips on this. Start a passion project like a podcast. It does not have to be on mortgages by the way. Google Leslie Smith or Carmen Costa to see examples of what they are doing as passion podcasts that aren’t about mortgages at all. But you can bet when interested people ask, what do you do? They get business.
Take advantage of the fact that most banks and lending companies heavily restrict what their teams say or do on social media. Follow compliance and advertising guidelines if your registration dictates but be VERY present and VERY visible. We honestly can’t wait to see all of your first TikToks.
4. Commit to Learning
It doesn’t have to take a lot of time. We believe you should be able to consume 15-25 minutes of learning each morning without ever affecting the amount of time you are seeing clients. Our videos never exceed that length for a reason. But even if you are not a member, learn. Ask a mentor, get a business coach (see our last podcast featuring Nicole Haney). There are so many ways to learn. Do it.
Learn outside of the business to stimulate your intellect. Maybe you will be the next pioneer in this industry because you discover something someone around the world is doing in a completely different industry that could apply well in developing a mortgage business.
Lifelong learning is not a nice to have. It’s a must. Don’t let anyone tell you otherwise.
5. Take Time for You and Your Family
No one who has put their family life on hold has ever experienced epic success. No one. Family is why we are here, family and personal time help motivate us to jump to that next level. It helps you stay interested in this business and helps you you maintain a purpose. This is not some frivolous click bait point here. Studies have shown that happiness cannot be achieved without love and support. Your money means nothing if purpose in life doesn’t exist.
This is not just for those families with kids. It’s everyone. Take time for your passions, take time for you. Do what you love and then love what you do. You’ll thank us later.
6. Journal It All and Trust in the Process
There’s a reason corporations need to take minutes you know. It captures the day to day, it captures financial successes and failures. It captures strategies, forward looking statements, ideas and plans. This also applies to you, whether a mortgage broker, agent, loan officer originator, whatever the title, journal your your road.
Jack Canfield says to think of a car driving at night with its headlights on. You can only see about 200 feet ahead, but if you just trust that that 200 feet will lead to another 200 feet and another and you follow a map, plan or process, you can get from Northern Canada all the way to the South of Florida just by only knowing, trusting and planning for what is 200 feet ahead.
Our point here is that a slow down is not a slow down at all. It is a slow down for those who do not prepare for it. For those that do, it is simply a shift in how we do business to maintain or dare we even say….increase success.
What will be your first step to reshaping for the future today?