Mortgage Professionals: Emotion and Devotion from Clients are Real So You Had Better Stop Selling Just on Rate

We get it mortgage professionals, there is no doubt, these have been trying times indeed. We are in a space in society where the world has been ravaged by disease, civil unrest and will be affected by economic ups and downs as a result. Recently, in our articles we have touched on what our research is saying consumers are going to want from you, the mortgage professionals of the industry moving forward. Hint: It’s no longer the best deal.

Here is why:

Clients still had to defer their mortgage payments, car payments and take government assistance, despite receiving the best deal from you, or their car dealer. Maybe they were simply furloughed by their employer and can go back. The key here though is that their emotional purse strings, their stress and their worry, their anxiety over their own futures were not calmed or relieved by that “best deal” they received in the past. People are starting to see that the best deal is not always the answer.

We are not suggesting people will pay double just to feel secure, they still want a good deal, but there is a tidal wave of emotional checkmarks to a mortgage professionals sales and planning process in the days and months ahead that go well beyond interest rate. You had better be ready. On top of all of that? Clients no longer want to deal with uncertainty, so this is a mortgage professionals opportunity to earn devotion. More on that in a bit.

Let’s talk about the emotional wave coming. It’s going to be really different yet again, but mortgage professionals have always endured and we believe in you, you can do this and thrive!

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No longer optional sides of selling, you need to consider it all

What You Will Now Be Selling

So what is that laundry list of emotional checkmarks we believe clients will be checking off as they deal with mortgage professionals moving forward?

1. Security Status and Quality

My Grandfather once said, “we’re not that rich to buy cheap sh*t”. People in the 2021 economy are going to want to feel good about the security in knowing they got value and security for the future, even if they have to pay more. Look how many people buy Apple computers or Tesla cars. These are premium brand names known to be more expensive but of higher quality. This concept is not new. The affluent have typically operated this way but less so for quality overall and more for status symbols. We believe people will essentially, wait longer to afford these items, or if they have the funds, devote more money to get higher quality, even though their economic status overall would have suggested in the past that they just to go with the “No Frills” option.

Companies like American Express have always believed this sentiment to be true, even pre-pandemic. “Membership has it’s privileges” has always been a tried and true marketing campaign for them and as such, even though it may at times be frustrating that they are not always accepted everywhere, there rewards programs, travel and fraud protections and long list of other benefits have always made it well worth it to have their card despite the higher annual cost.

The best part about mortgage professionals? You aren’t actually charging a premium monetarily to give clients premium services.

Here is how you can use quality and reassurance over price or rate to sell you and working with you or your team vs. getting a mortgage online or going to the bank:

  • Focus on the personal benefits. How can dealing with mortgage professionals offer better service and advice? How can it help the client pay off their home faster, complete their renovations and what are the benefits of having a mortgage plan in the same way they may have an investment plan?
  • Highlight the specific ROI. What is the monetary return your client will see? Is it lower overall payments or interest from a consolidation? Is it increased home value from taking a little more to make sure the renovation is done right? Is it more money to play with when they hit their 50’s because their mortgage is paid off on the advice you gave to reduce their amortization and accelerate payments?
  • Use anecdotes to make it real for your clients. Do you have any case studies of other clients that demonstrate the exact benefit your client is looking for? Even better, do you have any clients who did even better than you had planned using your advice and are any of those clients willing to talk to prospective clients as references for you?

2. Reassurance

Peace of mind is priceless. Especially now. People feel like they didn’t have the control over their lives that they thought they had prior to sheltering in place. They will be looking to you to help make these adjustments and establish more control over their own lives. Seem like a taller task than before? That’s because it is. But it is also your responsibility as a beacon for advice and hope. Transactional selling is dead. You can’t put a price on feeling safe and protected. This is the business that all mortgage professionals are in, along with other financial professionals like financial planners and advisors.

When it comes to mortgage sales, reassurance could mean paying off stressful debt but also being taught an understanding of what may happen should the client rack that debt back up again. It could be an understanding of when it is best to buy rental property or what it will take to do so and the hidden costs you have seen in your experience (even if it doesn’t relate to the mortgage itself – that’s providing extra value). Online mortgages or transactional bank mortgages may be cheaper rate wise, but there is no price most 2021 clients wouldn’t pay for sound, correct and reassuring advice, even if the rate is 15bps higher. Clients now more than ever will want to know what they are getting, know the contingencies and not be blind sided ever again.

Here’s how you can use reassurance to sell:

  • Describe what your mortgage solution will allow them to do. Can your client stop worrying about this one thing and focus on more important things like say, investing, paying down additional debt, starting a business or other items that improve their quality of life?
  • Use any sign(s) of trust to your advantage. Have you received any awards or recognition from the industry? Do you have any additional training or certifications that will make clients more at ease? Have you established social proof yet? (A heavy and well followed presence on social media in your community)
  • Share knowledge and statistics with your clients about the plan and what you are trying to accomplish. Remember, no matter how new to this you are, you are the one who is licensed, take pride in that and be confident in that. Their ‘brother Carl’ who likes to give them mortgage tips based on a Twitter bot account he scrolls by regularly, does not drive the bus of knowledge here, you do. Again, do you have any case studies of clients just like them that are getting the results they wanted based on your advice?
  • Prove others have already put their trust you. Do you have any testimonials on your website? Facebook and Google Reviews? Do you have any testimonials from high-level individuals in your community?

3. Time/Convenience

This plays to an individual’s needs for achievement. If your client is a working professional, busy parent, or anyone else with extremely limited time or energy, then selling convenience is a piece of cake. But the On-Demand economy is about to/is evolving. People are back to wanting to deal with actual people but still want convenience in combination with that personal touch.

There have been suggestions by others that you never have to meet clients face to face again with today’s new tech for mortgage professionals. Recent research we have been doing shows this is patently incorrect. You can’t build trust via email or esignature, but you can certainly help speed up your processes and procedures.

A huge mistake some mortgage professionals are making is trading all of the personal for all of the tech and convenience and not simply blending the two. If you expect to develop the devotion and repeat customer we talked about, a failure to blend the personal and trust building with the tech and convenience will render your offer to clients useless.

You might see the no personal, all tech approach work in major markets like Vancouver or New York where people work 12 hour days and can rarely meet, but for the vast majority of your markets (even in medium sized markets), this all tech approach will fail miserably. In addition, it most certainly will not result in devotion or repeat business.

So how can you mesh the tech to bring the convenience and ease of transaction factors while you still also meet with clients?

The good news is, this is a particularly hot space right now for mortgage tech. You can find nearly everything on-demand. SaaS companies helping you complete your process with clients remotely and in the office, end to end, are allowing mortgage professionals to take advantage of society’s increasing need to have things right away and streamline processes for ease.

Great examples are Finmo and others who help ingest sales leads, help complete documentation processes and submissions and many other conveniences.

Mortgage Professionals should definitely use these types of services but then must use that ease of use as an excuse for spending more time with clients on a plan rather than allow it to push transactional approaches that don’t build client relationships. Let those services do what they do best to streamline your business.

Here’s how you can use time/convenience to sell:

  • Translate the value for them in terms of time lost. How much time/money are they losing by continuing to do things the way they are? What are the long-term consequences if they don’t do take action now, either with debt, renovating before a move, or take advantage of less strict borrowing rules right now?
  • Help them realize what else they could/should be doing. You are the mortgage planner here. What would/should they rather be doing? What are the more important things they could be doing with their home and money? How much more effective could they be with their home financing and its integration with their overall financial future?

4. Pleasure

We all have this particular weak spot: We will pay almost any amount to enjoy a little more pleasure in our lives. For me, my guilty pleasure is wine! You with me? I’d gladly pay $20+ for the perfect glass of red. But everyone has something, whether it’s sports cars, luxury vacations, massages, gourmet food, etc.

You have to be a little careful with selling based on pleasure, because your primary advice needs to be on things that make sense for the client and are in their best interest. But if in your questioning you hear they really want to take a post pandemic vacation or add a pool because they can’t even imagine the kids ever being bored like this again, and you find there is some extra to make that happen responsibly that won’t harm their ability to repay, then there is nothing wrong with using pleasure as the icing on the sales cake.

Here’s how can you use pleasure to sell:

  • Translate the value of pleasure for your client How does your mortgage plan or solution help your client and their family become happier, whether it’s a direct impact or indirect? How does your advice and plan provide ancillary value toward their happiness?
  • Make the mortgage process enjoyable. How can you make the experience of dealing with you and the lender as enjoyable as possible? How can you surprise and delight your clients? There is a great video on this exact topic on M|M University by James Loewen
  • Help them in imagining their brighter future. How can you paint the picture of a more desirable future overall but also as it relates to homeownership? What would the ideal end game be for your client? This will help with the devotion part as well because they will be more likely to see it through with you if their is a target goal and a painted picture of the future.

5. Personal Empowerment

The whole pandemic has catapulted the self-improvement industry into one of the most lucrative industries of all time. Self empowerment is the main driver of motivation in this category. North Americans are spending over $11 billion per year to improve themselves, and that number continues to skyrocket. Every human has dreams and aspirations. If you can help them become a better person and reach their dreams, you only enhance the service you provide even more and your refer-ability. This includes everything from fitness to finance to emotional health, and so much more.

The key here may be that they eventually want to start a business or side hustle. Did you ask them if that was in the plans? It probably won’t come up unless you do ask. But then you can ask about capital needs to get started, can it be worked into the mortgage plan. Will working with you, help them achieve a long sought after dream?

Here is how you can use personal empowerment to sell:

  • Proudly present and publicize other examples you have helped your clients with. Have any of your clients used your solutions to do or achieve something they have always wanted to?
  • Offer to be a networking partner or offer your help in anyway you can to help them achieve that personal goal. You are self employed, you can offer advice and tips or offer to be a sounding board. Are they going to give to a local hospital or do something philanthropic with the funds? Have you done that? Offer advice!

Transactional and Online will Get you some Sales, but Emotion and Devotion will Build Legacy and Sustainable Success

Not all of these tips will apply to your mortgage practice. In fact, even the use of one or two of these things may end up making a dramatic impact and difference on your mortgage business. If you can find out which one(s) do apply to your client base and market, then you can leverage them and become a leading provider of something more meaningful and significant to your clients and contribute to the positive future of our industry.

How can you change they way you are selling mortgages to set your business, reputation, influence and service apart from your competition?

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