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When agents don’t understand current lending they are poor negotiators, don’t advise sellers correctly, and lose buyers that they could have closed. Getting them up to speed will build their confidence and open doors that will increase your bottom line. Here is an easy way to do it:
Put them with a MORTGAGE broker (not a loan officer, a broker,) who will explain how mortgages work. They need to know so they don’t feel/look foolish. At a minimum they should know:
The difference between “private,” “retail” and “wholesale.”
How many times a buyer can shop mortgage rates without affecting their credit (Fed. Law.)
The difference between “pre-qualify,” “pre-approve,” and “D.U. pre-approval.”
The steps to approval and what “conditional” approvals mean.
What costs buyers incur in the process that can be paid on a credit card.
What types of costs are negotiable.
How “Discount Points” work, and who’s discount they are.
What types of gifts buyers can receive.
What types of seller credits are available for different loans as a percentage.
What “closing costs” definition is and how negotiable they are.
The difference between FHA, VA and Conventional Mortgages and their limitations.
The local grants, bonds, assistances and CRA programs available.
The difference between Homestyles and 203K, with and without a HUD inspector.
Bridge loans, who has them and how they work
Special buyer programs for doctors, grad students, police, ect.
Investor products and hard money.
Right now you’re likely thinking “my agents will never need that knowledge, they mostly do cash deals…” but this education is to make them the expert, build confidence, influence their SOI and close more transactions.
*also… make sure they have access to a mortgage calculator app. Its just shocking how many don’t.
Pro Tip: Print this list and at your next meeting hand it to all your agents, tell them to accept that coffee date that aggressive lender has been pushing. Tell them “Bring the list like its an interview and you will walk away with lots of valuable knowledge and you’ll know how good the lender is!”