About Mortgages

Originating Loans in Today’s Mortgage Market

As a mortgage broker or loan officer, have you wanted to scream and pull out your hair? Market conditions have hit the industry hard and many have been affected in a painful and significant way. Like with many negative events, however, there are lessons we can learn to prepare for the future. And there are positive actions you can implement to improve your current situation.

How can I make the most of things right now?

1. Be careful of lenders who discount rates. Ask yourself — “Why is this lender so hungry for my business?” The lenders who are instable and less likely to be around tomorrow are also the ones most likely to discount.

2. Stay up-to-date with which loan products are available and what their requirements are. Thanks to the continual changes in today’s marketplace this will require putting in extra time, but the time spent is an investment that could spell the difference between closing a loan and not closing it. Your lenders should have product guidelines available for your use, and might provide training on their loan programs.

3. Become conscious of your attitude and self-talk. There are things we can change and things we cannot. Being pessimistic and gloomy does not improve the things we cannot change. On the other hand, positive self-talk and a hopeful, happy attitude can improve a situation. First of all, you’ll feel better. Secondly, you’ll have less stress, which means your mind will be clearer and you’re likely to make better decisions. Third, your positive attitude will be apparent to your clients. If you were a borrower, would you rather do business with someone who is optimistic or pessimistic?

What can you do for a better future?

1. Stay out of personal debt and reduce business debt to a minimum. Pay off your home mortgage as quickly as you can. Don’t buy a car you really can’t afford. Spend less than you earn. It’s good counsel, which is why you’ve heard it all before. Now’s the time to do it.

2. Build up your financial savings. By keeping business and personal savings accounts, you’ll be better prepared for both opportunities and emergencies, have greater peace of mind, and be better able to weather the market storms that will surely come. Financial reserves will also help you make decisions based on a longer-term perspective because you won’t be as worried about immediate survival.

3. Make choices based on a long-term perspective. This may mean working harder now for future profits. It definitely means keeping your integrity at all times, helping borrowers get the best loan product at the best rate (even if it means a lower yield for you ), and maintaining good relationships with your best lenders. Focus on building a good reputation and the investment will deliver great dividends.

In summary, work with quality lenders, stay up-to-date on loan product changes, and maintain a positive attitude; stay out of debt, build up your savings, and make decisions based on long-term perspective. Taking these steps can help you survive today’s storm and prepare you against difficult times in the future.

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