Written By: Karen Deis
They’re baaaaack! Refi’s that is!
Are you spending time quoting interest rates to hundreds of rate-shoppers? At the end of the day, you spent 8 hours on the phone with nothing to show for it!
Brian Kludt, a top loan originator with Waterstone Mortgage went from THAT loan officer to one who not only knows where his business is coming from, but has created a business model to insure that each loan is profitable, including his VIP Lock Service strategy.
In fact, he has 2 online seminars at LoanOfficerSeminars.com with tons of marketing materials, including a sample VIP Lock form.
Brian feels that most loan officers run their business in a “reactionary mode”. His business is run “intentionally”, with the ultimate goal to be different than his competitors!
Here’s the interview:
Karen: How is your loan pricing strategy different that other loan officers!
Brian: Instead of charging a 1 or 1.5 points, I look at gross profits per loan. Most loan officers base it on the loan amount—I base it on a flat dollar amount per loan.
Let’s face it, it costs the same to process a $400,000 loan as a $200,000 and usually, the higher loan amounts are easier to process. So let’s say my competitor quotes a rate and 1 point (which is $4,000). I decided that I want to make $3500 per loan, regardless of the loan amount so on a $400,000, it would be .875% and for $200,000, it would be 1.75%.
That way, I’m still competitive, am able to close loans at a higher loan amount, and quote a flat fee versus “points”, like my competitors do!
Karen: You also have that same strategy for closing costs! How did you figure that out?
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