The $500 Good Faith Estimate Guarantee for Loan Officers
When I originated loans in 2010, the new Good Faith Estimate [GFE] already made its way to the mortgage world. This 3 page document confused the shit out of 1000s of loan officers. In the beginning clients had no idea what the hell the GFE said. Coupled with already not trusting banks, a huge problem of deceit arose in many client’s minds. I had to quickly find a way to overcome this major problem. The only thing I could think of and put into place was a $500 Good Faith Estimate Guarantee.
You can do the exact same thing to ease the anxiety of your clients as well.
My $500 GFE Guarantee worked like a charm and created the trust I needed to close clients. Every time I spoke with a client and prepared their GFE, I gave them the guarantee that my estimate was within $500 of their final dollars to close or I would personally cover the difference. This gave my clients the confidence to move forward with me immediately. They could rest assured the fees I presented them with would be dead on. And if they weren’t, it was not their concern. Most clients these days have heard or experienced the last minute “I’m sorry but you are doing to need to bring more money to the table.” problem. Especially since the majority of mortgage holders obtained their financing through one of the big 4 banks. We can all agree there is no way a big bank employee can make a guarantee or stand behind his or her GFE 100%. Big Bank Employees can’t promise shit. So to the client, when the Big Banker shows a lowball GFE with no promise or guarantee, the client comes back to you and trusts that you have their best interest in mind. Now I understand there are some RESPA guidelines in place that keep LOs from paying customers. This makes all the better reason to prepare your GFE’s spotlessly. Don’t get in a rush with clients. Ask them ALL the important questions and get all the riff-raff you may run into in the future, out-of-the-way up front. I never came out of pocket at closing for a client. Most of my initial GFEs were within $100 of cash to close. If you are confident in your GFE preparation don’t be afraid to stand behind it. You will most likely never have to pay but at the same time, the client knows they can trust you. I would even email them over the guarantee in writing. I would go above and beyond to let the client know I cared and was here for them. My larger competitors could not even get near me. Also you can use the power of video to help your clients decide to stick with you. I’ve found video will influence a client of your stellar communication skills and earn their business. Take a look at the quick video below. You can copy this video and use it for your next rate quote prospect. If you are a Loan Officer and you are ready to take your business where no other mortgage person has gone before, let’s talk. What you have seen here in this blog post is just the tip of the iceberg. Loan Officers that choose to work with me crush $2MM/month on a bad month. Let’s talk about your business and how you can improve. All you have to do is fill out the form below.