NMP - April 2017 - 97
How to Make Them Use You
By Brian Sacks
had a very interesting phone
call the other day from a client
who was referred to me by his
accountant. He owned a home
with his girlfriend and they had
just broken up. He need to
refinance and told me who
had referred him.
went much like all
conversations go with
me asking him the
value of the home, the
amount of the
current rates. I also
asked him about his
income, credit, debts
I then "Eduscared" him ...
What the heck is "Eduscaring?" I
Why shop rates and points?
The truth is that we all look alike.
We all have pretty much the same
programs, and generally, we all
have rates that are within 0.125
percent of each other. I actually
created a term for this: "The Head
of Lettuce Syndrome." If there are
two heads of lettuce and they are
exactly the same, most people will
choose the cheapest one. To
consumers, we all look alike, we all
sound alike, and truthfully, we all act
alike and our ads are all alike. But
there are several ways to stand out
and some tactics of persuasion you
can use to stop those rate shoppers
dead in their tracks. So grab your
highlighter right now and let's go
through a few of them.
As I mentioned, one of the biggest
challenges we have is that we all
look alike to consumers. The only
question they know to ask to
compare us is "What is your rate?"
When you are an expert in a niche,
This is a sneaky little persuasion
tactic, so keep this one to yourself
okay? I always prefer to meet with
my clients in person, either at my
office or at the office of a real estate
agent. Many of the loan officers in
my office and many of my Top
Originator Secrets members just
chalk it up to me being "Old
School," but nothing could be
further from the truth. I like to make
my clients invest their time into the
pre-approval process. I want them
to provide me with their bank
statements, income information and
have their credit run.
I want to meet them and have
them provide this information to me
personally. This investment of time
and effort on their part makes them
much less likely to shop and
compare rates. Most people will
take the easiest path, and since they
have now met me and given me
their information, they are 100 times
more likely not to shop.
Celebrity and social proof
What I am about to share with you is
probably not something you will
easily admit to, but that doesn't
make it any less true. People like to
work with celebrities. Your job is to
make yourself a celebrity in your
area. How do you become a local
l Write articles for your local
l Have a podcast and promote it
on LinkedIn and Facebook
l Be a guest on local radio shows
l Host your own radio show
l Go on local TV or be interviewed
as a resource on the mortgage
and real estate market
People love to work with
celebrities and they love to brag to
all of their friends and celebrities
about working with one. It makes
them feel special. When they feel
special, they almost never ask about
rates and points.
The best script of all ...
This is a big idea that I use daily
with my prospects and is easy to
implement if these other
suggestions scare you. When a
client calls me to ask for rates and
points as a pre-qualification before
they have found a home, I never
quote rates. The conversation
generally goes this way, so you
might want to copy this down right
now. This generally happens after
we have gone through the prequalifying conversation about
income, assets and credit.
Prospect: "What are
Me: "Rates on this program have
been running between 3.75 and
4.0 over the past 60 days. The
market has been a bit volatile and
bouncing around. When you find a
home and the seller has signed
your contract, we can lock in your
rates. Rates change daily, so
hopefully we will be on the lower
end when you are ready and we
can discuss it then."
The power of this statement is
that it makes the person feel like
you have, in fact, given them the
information they requested, but in
fact you really have not told them.
Brian Sacks is a nationally-renowned mortgage expert who has
career closing of more than 5,924 transactions for more than
$1 billion. He has trained, consulted and coached tens of
thousands of loan officers and company owners over the past
31 years on how to close more loans, make more money, and
still have a life. Brian is the host of "Top Originator Secrets,"
which can be seen weekly on Mortgage News Network and on
his blog. You can get more information and grab your free
report on "How to Get Agents Chasing You" at
n National Mortgage Professional Magazine n APRIL 2017
I gave him our rates
and a long answer ...
So I gave him our rates, and he
proceeded to tell me he had
gotten a better price from
another lender. Now I hope
you realize that on any given
day, you will never
consistently have the best
price in the market. I asked
him if rate was his only
concern when choosing who
to proceed with. He said yes.
So I immediately told him not to
use me or the other lender.
Instead, I told him to go online
and search for the cheapest rate.
He would then be able to complete
the application himself and pray that
he truly would close on time if at all.
But then I added one
additional powerful thought ...
Ready? You might want to even
write this one down ... it's that
good! During our discussion, he told
me he owned an engineering firm
locally. So I asked him how his
clients decided? Was his firm the
cheapest in town? If I was going to
build a building, I would want
competitive pricing, but more
importantly, I would want a firm that
was competent and would do a
This truly startled him and he
said, "Yeah ... I guess you are right.
Let's make application."
Sometimes it's important for your
buyers to "hear" it themselves in a
way that makes sense to them. You
have my full permission to try this
and send me an e-mail at
let me know how it worked.
this question totally disappears. The
key is having expertise in programs
that most other lenders are not
offering. You could also have
expertise in working with a certain
group that few others can help with.
Our company is one of the top
lenders in the nation for 203k loans.
This loan is very involved and one
that buyers rarely shop. Another
niche is that of Boomerang Buyers
who have had a bankruptcy or
foreclosure. There are programs
from several sources that offer
buyers loans one day after a
bankruptcy or foreclosure. These
buyers just want to make sure you
are for real and that they can come
up with the money down and have
comfortable payment. Your mission
right now is to pick a niche, become
the expert in that niche and let
everyone know about your
Then he asked
I will share a great
script with you soon
in this article, but I
question with a few
When are you
looking to settle? Do
you both have an
agreement in place for the buyout?
Has she agreed to it? One important
way to divert attention away from
the rate question is to continue to
ask good, solid, probing, questions.
Towards the end of our
conversation, he finally came back
around to what my rate was, so I
had no choice but to answer it.
Before I gave him the rates though, I
asked him if he was ready to move
forward today since rates and
points change daily. He said yes.
actually love this term I created so
much I may have it trademarked.
"Eduscaring" is providing a
borrower with all of the education
they need to make a proper
decision on who to work with. It
involves explaining points and
APRs. It involves discussing fees. It
involves discussing business and
MSA relationships. It basically
provides the buyer with all of the
information they need to make a
proper decision and not get taken
advantage of by the tactics of some