Top 3 Steps for Originators to Win in 2021

#1 Ground-Up Construction

It’s easier than you think and lucrative; but why? Consumer Construction-to-Permanent (CTP) loans and Investor construction loans are a profitable space for any loan originator. We are in a world where housing shortages exist in every major market. With that being said, construction loans can increase your income and build a pipeline for future business while being sourced through a real estate agent or builder referrals.

Now,if you’re just starting out in this market, it’s important to knowwhat type of construction loan you are selling. CTP loans are single close. What this means is that the lender will automatically convert the construction loan to a permanent loan. This can be an advantage for the consumer if they are planning on moving into the property and are concerned about qualifying for a permanent loan at the end of construction. The traditional construction loan will need to be taken out by Permanent Financing once the house is done and, in most cases, the property is sold, and the loan is paid off. Generally, construction loans without the permanent conversion option will have better terms for the client and mortgage originators can usually find better Permanent Financing than what is offered through a CTP.

#2 Embrace Social Media

Love it or hate it, one thing is clear: technology has permeated virtually every aspect of society—includingthe loan origination business. Use this trend to your advantage and capitalize on the wealth of marketing and business development opportunities social media platforms have to offer. With new homebuyers increasingly turning to the internet for information, 2021 is the perfect time to ensure that your company’s social pages grab their attention by upgrading your profiles to draw potential customers to your Facebook, Instagram and LinkedIn landing spots. According to a 2018 Ellie Mae study, 92% of borrowers conducted online research before contacting a lender—an increase of 57% from just five years before. Here are some tips and tricks to spruce up your online presence so you don’t miss out on promising new leads:

  • Do It Live: Consider hosting a live Q&A session or a first-time homebuyer seminar on broadcast channels such as LinkedIn Live, Facebook Live or Twitter Chats. These types of engaging live events indicate a level of authenticity that many social media users crave. Be sure to promote your upcoming live session in advance via all of your social media pages.
  • Share Customer Experiences: Nothing builds credibility faster than featuring a short, positive 10-15 word comment from a satisfied customer.
  • Break Some News: Assist homebuyers, neighbors and real estate agentsin the surrounding community by sharing industry-relevant news when it can save your followers money. For instance, as we approach the May 17th tax deadline, emphasize how eligible homeowners can potentially save hundreds of dollars every year by deducting mortgage insurance premiums on their IRS returns.

Get Comfortable Saying “No”

One of the most common missteps new loan originators make is trying too hard to please everyone and put out every single fire themselves. This is because they have not learned how to value their own time and are willing to sell it for way less than what it is worth. Seasoned salespeople appreciate how much their time is worth, which makes them comfortable turning down propositions that simply are not a good fit for their business development and personal objectives. If a prospective borrower doesn’t fit the profile of your other revenue-producing clients, don’t attempt to squeeze blood from a stone—turning down the ill-fated offer will generate more revenue by enabling you to concentrate on loans you know are worth it.

If you are a loan originator looking to partner with an established private lender on your next transaction, let the team at Jcap Private Lending help! We have been in the mortgage industry for 30+ years and know how to help you succeed!