There are a few reasons why conversion rates in the mortgage industry are so low. For one, a mortgage is a huge investment — something that consumers have always and will always consider much more carefully than other financial decisions. With such high risks, it’s no surprise that many consumers heavily consider (and ultimately decline) a new home loan or refinance. The financial and personal weight of this decision is something that loan officers can’t change.
When it comes to other reasons why mortgage sales are low, though, there’s one factor contributing to sales failures that is completely within loan officers’ control: their conversations with consumers during this decision-making process. At Monster Lead Group, we’ve seen firsthand that the conversations from the majority of loan officers are overly focused on sales, which does nothing to alleviate consumers’ concerns during a stressful time.
The solution? Teach loan officers how to sell without selling.
Given the weight of a mortgage decision, the last thing a loan officer wants to do is make a consumer feel pressured, rushed, or reluctant during the decision process. Overemphasizing the focus on making a sale can result in these feelings, leading the consumer to mistrust the loan officer and abandon the idea of taking out a loan.
As Monster Lead Group founder Ken Bartz explains in this video, taking on a new loan is risky enough. Why would a consumer want to pile on more risk with a loan agent they don’t fully trust?
The secret to building trust (and thus building sales) is education. Instead of providing consumers with sales pamphlets and persuasive pitches, give them objective information. By simply providing the facts — unfiltered by sales tactics — loan officers allow consumers the opportunity to educate themselves on their own terms, and in their own time. They deflate a high-pressure situation and allow consumers to gain clarity about the best solution for their situation. And for that, they’ll thank the loan officer and hopefully sign with him or her, too.
The saying that “knowledge is power” couldn’t be more true than when it comes to buying or refinancing a home. By educating a consumer instead of simply enticing them, loan officers can help leads feel empowered and confident about a big decision. The best thing about this approach is that it’s a win-win for both parties: The consumer feels empowered and informed enough to take action, and the loan officer is prepared to help them take the next step. Instead of wasting time conducting additional research, consulting with other parties, or waffling back and forth on a decision, the consumer is able to make an efficient decision thanks to the objective information readily presented by the loan officer. And as anyone knows in today’s mortgage market, efficiency is key.
Ready to streamline your operations and teach your loan officers how to sell without selling? Take the Quiz and let’s find out if we’re a good match!