How to Master Selling a Borrower a Loan Product, The RIGHT Way

March 8, 2023 By: Editorial Staff

Selling a borrower on a loan product is an important skill for anyone who works in the lending industry. It’s not just about closing the sale, it’s about ensuring that the borrower is fully informed and comfortable with the terms of the loan. In this blog, we’ll discuss some tips and best practices for mastering the art of selling a borrower on a loan product.

1. Understand the borrower’s needs and goals

The first step in selling a borrower on a loan product is to understand their needs and goals. What is the borrower looking to achieve with the loan? Are they looking to purchase a new home or refinance their existing mortgage? By understanding the borrower’s specific needs, you can tailor your sales pitch to address their unique situation.

Here are some examples of sales pitches that can be used when selling a home loan product:

• Goal: Purchasing a new home Sales pitch: “Are you looking to purchase your dream home? Our home loans can help make that dream a reality. With competitive interest rates and flexible repayment terms, we can provide the financing you need to purchase the perfect home for you and your family. Our experienced loan officers will work with you to find the best loan product to meet your specific needs.”
• Goal: Refinancing an existing mortgage Sales pitch: “Are you looking to lower your monthly mortgage payments, reduce your interest rate, or access equity in your home? Refinancing your mortgage may be the solution for you. With our competitive rates and streamlined application process, we can help you refinance your existing mortgage and achieve your financial goals. Our experienced loan officers can walk you through the refinancing process and help you find the best loan product to meet your specific needs.”
• Goal: Home renovations Sales pitch: “Are you looking to make home improvements, such as a new kitchen or bathroom, or add additional living space to your home? Our home improvement loans can help finance your home renovation projects. With our competitive rates and flexible repayment terms, we can provide you with the funds you need to make your home more comfortable and increase its value. Our experienced loan officers will work with you to find the best loan product to meet your specific needs.”

2. Explain the loan terms clearly and concisely

One of the biggest challenges in selling a loan product is explaining the loan terms in a way that is easy for the borrower to understand. According to the Consumer Financial Protection Bureau (CFPB), one of the most important things a lender can do is to explain the loan terms clearly and concisely.

This means breaking down the loan amount, interest rate, repayment terms, and any fees or penalties in simple terms that the borrower can understand. Avoid using complex jargon or industry-specific terminology that the borrower may not be familiar with.

3. Disclose all fees and charges upfront

Another important aspect of selling a loan product is to disclose all fees and charges upfront. According to the CFPB, lenders are required to disclose all fees and charges associated with the loan, including the annual percentage rate (APR).

This means being transparent about any origination fees, application fees, prepayment penalties, or other charges that may be associated with the loan. By being upfront about these fees, you can build trust with the borrower and ensure that they are fully informed before signing the loan agreement.

4. Address the borrower’s concerns and objections

When selling a loan product, it’s important to be prepared to address the borrower’s concerns and objections. According to a study by J.D. Power, one of the top reasons borrowers cited for not accepting a loan offer was a lack of clarity or understanding of the terms of the loan.

To overcome these objections, take the time to listen to the borrower’s concerns and address them head-on. If the borrower is concerned about the interest rate, for example, you can explain how the rate was calculated and why it’s a fair and reasonable rate.

5. Follow up with the borrower after the sale

Finally, it’s important to follow up with the borrower after the sale to ensure that they are satisfied with the loan product and to address any questions or concerns they may have. According to a study by Experian, borrowers who had a positive experience with their lender were more likely to recommend that lender to others.

By following up with the borrower, you can build a positive relationship and increase the likelihood of repeat business or referrals in the future.

In the highly competitive lending industry, mastering the skills necessary to succeed in sales is key. By understanding the borrower’s specific needs and goals, tailoring your sales pitch, and providing exceptional customer service, you can create a positive experience for the borrower and ultimately close the sale.

As a leading mortgage lender in the industry, HMAC has the experience, expertise, and resources to help you navigate the sales process and achieve success. From providing customized loan products to training and support for loan officers, HMAC is committed to delivering top-notch customer service to both borrowers and lending professionals.

By partnering with HMAC, you can access the tools and resources you need to excel in the lending industry. Whether you’re a new loan officer or an experienced professional, HMAC can provide the guidance, training, and support you need to master the skills necessary for success.

In conclusion, by utilizing the resources and expertise of HMAC, you can master the skills necessary to sell loan products, provide top-notch customer service, and ultimately achieve success in the lending industry.

• housing market
• Loan Product
• Selling
• Tips