Mortgage Pricing Update: 1/28/2008

Holy market roller coaster ride, batman.  This week, we are in store for a seriously volatile market with several economic reports that have the potential to swing the market either way.  In total, there are over 10 extremely significant reports to the mortgage market that are scheduled for release by the end of this week.

 

However, let’s talk about what is happening today.  The reports being released are relatively mild considering what is going to be released tomorrow.  Currently, the Mortgage Backed Securities are selling 6 bps over their ending price last week.  However, this is slightly lower than where it started this morning (9 bps over).

The 10 Year Treasury is currently down by 24 bps which is an overall insight on what the feeling is in the overall market.  The DOW is going up slightly right now from an early morning “set to fall” article.  However, they are rising primarily due to the hopes of another rate cut (you can find this at CNN Money).

My suggestion is to float for the rest of today.  However, make sure that you tune in every now and then to see if I have changed this update.  There might be a lock report in late day depending on what the anticipations are for tomorrow’s economic reports.

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Pre-Qualification 2.0: Follow Up Schedule

We’re coming to the conclusion of the Pre-Qualification 2.0 process.  The initial relationship building and client retention activities should take somewhere around an hour per client.  If you have been keeping up with the series, you know that you have done several things that will help you rise above the competition.  Let’s go over what steps were taken to establish that relationship and what will keep your client with you:

• You have overcome the first objection
• From there you went right into selling emotion
• After you sold emotion you talked about their employment and income
• You moved right into the retirement/financial goals and assets
• You’ve gotten through discussing liabilities
• And you have passed closing the call
• Finally, in the last 30 minutes you have contacted real estate partners

Again, everything that you have done thus far has differentiated you from the other Loan Officers out there in today’s market that are looking for the quick application, or the ones that don’t have comparable relationship building skills.

So, how do we maintain that relationship with our clients and the other Real Estate professionals involved (primarily the Realtor)?

We have to make sure that we follow up and demonstrate a strong base of customer service.  That means that we have to create a follow up schedule and stick to it.  While doing this, I make sure that my client knows that I will be following up with them every week at a specific time. 

With that in mind, my pre-qualification clients are called either Thursday or Friday of every week.  I spend about 10 minutes with each client when I call just checking in to see if anything has changed and how their home search has been going.  Also, just after I talk with the client, I call the Real Estate Agent to make sure they know that I am in constant contact.  I always ask if there is anything that I can do to help with the process as well.  This lets the Realtor that I want to make this as simple as possible and help them out as well.

 

Another way that I keep in touch with my clients is having them on an automatic market update e-mail.  This is similar to what I have done here with the Mortgage Pricing Updates, but is more clientele centered.  I suggest whether to try and lock/float as well as let them know what factors they should be looking for in today’s market (news articles, etc).  I also put the Real Estate professionals on the e-mail list as well.  That way they have an idea of the current market and allows me to get a step above the competition with gaining their future business as well.

That being said, I am not saying that my system is the best system or the only system.  However, it is a follow up system that has worked for me in the past and has really helped develop a referral base as well as develop a networking relationship with the agents and other professionals involved.

 

I would definitely like to hear any other ideas that you all might have on following up with your clients throughout the pre-qualification period while you wait for your client to make an offer on a home.