How to Build a Digital Referral Business

When you think about it, most of your business likely comes from referrals in one form or another. Referrals typically have a 30 percent higher conversion rate and, when current customers are satisfied, 69 percent of customers will recommend you to other people. In fact, 2.4 billion conversations take place every day in the United States that focus on brand-related content. So, if referrals are so crucial to business growth, why aren’t referrals a part of most business marketing strategies? Not taking the time to focus on your referral channels is a missed opportunity. Learning how to start a referral business will help you boost your lead generation and conversion.

Benefits of referrals

So, how can you really benefit from starting a digital referral business as a part of your marketing plan? While we have already shared a couple of statistics, they are only the tip of the iceberg, so to speak. Some other benefits and referral statistics include:

• 82 percent of sales leaders believe the referrals generate your best leads.
• Referrals and word-of-mouth can boost the effectiveness of your overall marketing efforts from 54 percent.
• For every single happy customer, you can receive an average of nine referrals.
• 92 percent of potential clients trust a referral from friends and family.
• Referral leads have a 16 percent higher lifetime value than other marketing techniques, as well as a 13.2 percent higher spending rate.
• 86 percent of businesses with a structured referral business marketing strategy experience revenue growth within two years.
• 33 percent of Facebook users choose to use a brand based on posts made by friends or family members.
• When referred through social media platforms, 71 percent of consumers are more likely to use a brand.

How to start a referral business

The purpose of starting a referral business is to attract new leads for your business. Understanding your goals, such as which leads you want to attract, and how to achieve those goals is essential to starting a referral program.

Here we go over some tips on how to nurture and engage your customers in order to promote a good customer experience and reliable referrals.

Establish an online presence

Before you begin an active referral business, it is essential that you establish a positive online presence that will allow referrals to find your business. This includes a business website and social media profiles. Make sure that these sources have a way to capture new referrals, such as email signup or newsletter registration.

Deliver a great experience to the client

Great referrals begin with happy customers, so every referral business must begin with providing a customer experience that meets all your clients’ expectations. When you do this, clients are more likely to spread the word and send potential clients your way.

Build client loyalty

Client loyalty is the measurement of a client’s willingness to continue engaging and purchasing your product or service. Establishing customer loyalty is an important part of increasing the lifetime value of the client. It is also a way to boost referral prospects. Providing a high-quality customer experience during the loan process is a great way to start building client loyalty. Asking for feedback after closing can help show that you care about their experience and value their feedback to make improvements. Maintaining frequent communication through emails or social media helps keep your name in their minds and lets you keep them updated on important changes or promotions.

Make it easy for them to refer

While many clients will freely work to refer friends and family, others simply don’t know how. Providing them with easy referral methods, such as referral cards or referral links to your website, will allow them to easily send potential clients your way.

Law of reciprocation

When you give, you shall receive. This concept works when it comes to referrals and is the perfect opportunity for you to help clients and business partners while they help you. When you provide referrals to previous clients or partners, they are likely to repay the favor with referrals. For example, your last client was a plumber. You have a family member that has burst pipes, so you refer them to your client. He then remembers his sister is purchasing a new home, so he refers them to you.

Say “Thank You”

Any time you receive a referral, whether from a previous client or a business partner, be sure to say thank you immediately. This can be through a simple phone call, a thank you card, and a small gift.

Follow up referrals quickly

When you receive a referral, take advantage of the referral right away. While the referral has been sent your way, leaving them waiting too long may send them looking for an alternative business that is ready to communicate with them now.

Identify and explore formal referral/alliance relationships

Develop beneficial relationships with your business partners that can provide referrals for both of you. For example, if you work closely with a realtor, consider asking them to promote an article of yours on their website or emails. In exchange, you can feature a blog post of theirs. This cross-marketing can help promote both your businesses, as well as generate quality leads.

Automate

Many aspects of your referral business can be automated, leaving you to focus on direct contact with your clients and referrals. With a CRM, you can utilize things like automated website email list signups and then use customer referral templates for follow-up emails and more.

Let your referral business work for you

Establishing a referral business allows you to take advantage of your high-quality customer experiences and make it work for you. Your referral business can be your biggest lead generation marketing tool. Contact us at Good Vibe Squad to help you understand the importance of lead generation and how our services can help boost your leads even more. To learn more about how we can help boost your business, check out our Fastrack and Unfair Advantage programs today.

How to Build a Digital Referral Business is available on: www.goodvibesquad.com

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Loan Officer Guide to Mortgage Compliance

The mortgage industry is highly regulated and, as a mortgage loan officer, your business strategy must abide by mortgage compliance regulations. While many loan officers and businesses pay compliance officers to monitor for compliance, all loan officers need to have a basic understanding and it is a good idea to follow a mortgage compliance checklist.

Here we look closer at mortgage compliance and what it means for you and your business.

What is mortgage compliance?

Mortgage compliance refers to the rules and regulations that regulate the mortgage process. Following these regulations is a legal requirement for all loan officers and following these regulations is a key component for your success. Compliance laws are always evolving and, as a loan officer, you must be aware of these changes and how the requirements impact the way you perform in every aspect of your workday, including your marketing strategy.

Why is mortgage compliance important?

Mortgage compliance exists to protect the consumer (buyer) and lender, as well as allow tracking and improvement throughout the loan process. For the consumer, the compliance rules help to reduce their risk. Compliance can include things like being upfront about closing costs as fees, as well as helping the borrower determine necessary home and mortgage insurance. For the lender, both federal and state-level compliance rules help to reduce the financial institution’s risk.

Compliance rules are also in place to help track and improve the mortgage lending process. The collection of data through regulatory measures helps improve the process while allowing you to evaluate the current mortgage process and find ways you can improve. Following these rules helps to ensure that loan officers are following all regulatory laws.

Regulations all mortgage professionals should know

While the many compliance rules can seem overwhelming, having a basic understanding of these regulations is important. Here are a few of the main regulations every loan officer should know.

1. Truth in Lending Act (TILA)

The Truth in Lending Act (TILA) began in 1968 as a way to protect consumers from predatory lending practices. As a loan officer, this means that you must provide written disclosers in clear and simple language for all loan terms and costs, such as the annual percentage rate, the total amount financed, finance charges, monthly payments, number of payments, and the total loan cost.

2. The Home Ownership and Equity Protection Act (HOEPA)

Enacted in 1994, the Home Ownership and Equity Protection Act (HOEPA) was an amendment to the Truth in Lending Act (TILA). The goal of this act was to address abusive practices seen in refinances and closed-end home equity loans. The goal of this act is to discourage banks and other financial institutions from predatory lending. If a mortgage or home equity loan meets the high-cost coverage tests within the regulation, certain disclosures must be made by the lender. In addition, this regulation protects home buyers from overpaying for private mortgage insurance (PMI).

3. Home Mortgage Disclosure Act (HMDA)

Enacted in 1975, the Home Mortgage Disclosure Act (HMDA) mandates that mortgage lenders maintain, report, and publicly disclose certain records to monitor lending practices. Maintaining these public records allows regulators to monitor geographic targets, follow and report mortgage market statistics, and identify predatory or discriminatory lending practices.

4. Flood Zone Determination and Flood Insurance

Flood Zone Determination puts forth certain requirements for property located in flood zones. It puts forth flood insurance requirements for property in a flood zone and prohibits new loans on property located in specific flood hazard areas.

5. Ability-to-Repay/Qualified Mortgage (ATR/QM) Rule

This rule requires lenders to make a reasonable, good-faith determination of a buyer’s ability to pay a loan according to the terms.

6. Real Estate Settlement Procedures Act (RESPA)

Enacted in 1975, the Real Estate Settlement Procedures Act (RESPA) requires that lenders and loan officers provide certain disclosures, such as the servicing disclosure statement, at the time of application or within three days of application. The act also works to eliminate abusive lending practices by eliminating the use of kickbacks for referrals and limiting the use of escrow accounts.

7. TILA-RESPA Integrated Disclosure (TRID) Rule

Enacted in 2016, the rule integrates the forms required under the Truth in Lending Act and the Real Estate Settlement and Procedures Act.

8. Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act

The Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act was enacted in 2008 and mandates a nationwide licensing and registration system for all residential mortgage loan originators through the Nationwide Mortgage Licensing System and Registry.

9. Telephone Consumer Protection Act (TCPA) and Do Not Call List (DNC)

These rules regulate telephone communication including telemarketing, the use of automatic dialers, pre-recorded calls, text messages, and unsolicited faxes. The DNC prohibits the contact of those on the list.

Why do loan officers need to know these regulations?

First and foremost, you are legally obligated to comply with these regulations. They are designed to protect the consumer, but also to protect the lender. In addition, they can help you to track and improve your overall loan process. They allow for complete business transparency and help to build a relationship with your clients that, in the long run, can help to increase referrals and leads.

Mortgage compliance can help your business grow

While complying with these mortgage compliance regulations may seem time-consuming and frustrating, they create the foundation of a successful business. These regulations are in place to enhance the mortgage process and make it fairer and more transparent. Following these regulations will ensure your success and help drive more business to your door.

The Good Vibe Squad understands the desire to grow your business while still maintaining mortgage compliance. To learn more about the programs we offer, check out our FastTrack and Unfair Advantage programs today and let us help you boost your business.

Loan Officer Guide to Mortgage Compliance was first published on: https://goodvibesquad.com/

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Mortgage Loan Ads Using LinkedIn

When mortgage loan officers think about LinkedIn marketing, they focus on their profile and networking with others, and the organic reach they can achieve with these marketing tools. However, LinkedIn offers a powerful ad platform that can be a great benefit for loan officers. Creating mortgage loan ads on LinkedIn can help drive new leads and referrals to your business.

Setting up LinkedIn mortgage loan ads

Setting up a LinkedIn ad campaign involves visiting their LinkedIn Marketing Solutions platform. Once you register and create your account, you are ready to start creating the campaign and ads that you want to run. However, before you get started, there are a few things to consider.

Set your objective

The first part of creating your LinkedIn campaign is determining its purpose. What exactly do you want to achieve with your ad campaign? LinkedIn offers three primary objectives for you to choose from. These include:

• Awareness – Are you looking to simply boost your brand awareness? Choosing this objective allows you to promote your brand, services offered, your company profile, or a special event. This objective is a great way to boost brand awareness on LinkedIn.
• Consideration – Under the consideration category, you can choose one of three options: website visits, engagement, and video views. These ad options can focus on driving traffic to your website or a specific page, help to increase engagement and followers to your LinkedIn profile, or share your videos with a wider following.
• Conversions – Conversions is the third category and again has three different sub-choices: lead generation, website conversions, and job applicants. Here you can focus your campaign on things like capturing leads, driving traffic to your website for downloads/new registrations, or promoting job openings with your company.

Define target audience

The next step involves defining your target audience for your ads. This section allows you to choose from a wide range of different demographics, so it is important that you have a good understanding of your target audience.

Establish your budget

Once you have your objective and audience defined, it is time to set up your budget. If this is your first ad campaign, it is a good idea to start with a small daily budget that will allow you to test your ad. If, after a few days, you see that it is achieving the desired objective, then you can increase your budget as needed.

Schedule your campaign

Once your budget is set, it is time to schedule your campaign. Choose a start date and then you can choose to run the campaign for a certain amount of time or continuously.

Track your conversion

Once everything for your campaign is set up, the most important part is making sure you set up conversion tracking. Here you will need to click on “Add Conversions” and choose you conversion settings. This will allow you to track your individual campaign and see the actions that people take after they click on your ad.

Types of LinkedIn ads

Once you create your campaign, your focus turns to your ad creation and ad type. LinkedIn offers a wide range of advertising opportunities with different ad placement and promotions. Here we take a look at some of the various options you have available.

Sponsored content

Sponsored content, also known as native ads, shows up as promoted ads in the LinkedIn feeds of your targeted audience. There are four different types of ads that you can choose to use for sponsored content.

• Single image ads – This ad uses a single photo image with an ad name, headline, and introductory text. You also have a wide range of call-to-action choices you can include. This ad will link directly to the URL of your choice.
• Video ads – Video ads offer the same choices as a single image ad except the image is replaced with an MP4 video.
• Carousel ads – Carousel ads allow you to tell a story using images and text that lead a prospect to take action. Here you can choose between 2-10 carousel cards with a maximum file size of 10MB.
• Event ads – Event ads are geared to boosting your attendance at LinkedIn events.

Sponsored messaging

Sponsored messaging delivers ads directly to the inboxes of LinkedIn members. These messages can help boost engagement and get conversations started with interested leads. There are two different types of ads available for sponsored messaging.

• Conversation ads – These ads are designed to engage and promote conversation and conversion with LinkedIn prospects. These allow for the creation of a message along with images and links that can include your website, email signup, webinar registration, and more.
• Message ads – Message ads are designed to spark conversation and action. These are a great way to introduce yourself to prospective clients and encourage them to return the message or visit your website for more information.

Text and dynamic ads

These ads run in the LinkedIn right rail section and are only visible to those logged in on a desktop computer. There are three main options in this ad category.

• Text ads – These ads are text-only and can help drive new customers to your business on a budget.
• Spotlight ads – Spotlight ads allow you to showcase a product or service and help boost traffic to your website.
• Follower ads – Follower ads are designed to help boost your LinkedIn page followers and increase your audience.

Let LinkedIn work for your mortgage business

LinkedIn, as well as LinkedIn mortgage ads, can be a great addition to your lead generation program and a great way to boost your business. If you are looking for additional lead generation ideas, contact Good Vibe Squad and we got you covered. Check out our Unfair Advantage and Fastrack systems to see how they can help you achieve your lead generation goals.

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YouTube Video Marketing for Loan Officers

As a loan officer, you are always looking for ways to connect with clients and enhance your business. Finding original and unique ways to target new customers can make a big difference and YouTube may be the answer you are looking for. While many people think of YouTube as a simple video platform, the truth is it is so much more than that. When used correctly, it can become a successful marketing tool that can help you build relationships with both past and present clients. Learning how to leverage YouTube by creating a successful YouTube video marketing strategy can make a world of difference when it comes to your business.

YouTube is much more than simple videos

YouTube is best known as a social media source for entertaining video content. However, it is much more than that. Owned by Google, YouTube is the 2nd most visited website in the world, sitting only behind Google. It is also the 2nd largest search engine, after Google, and accounts for one-third of all web traffic throughout any given day, with the average viewer spending over 24 minutes viewing content. And given that Google owns YouTube, optimized videos posted on the platform gain extra points when it comes to search engine rankings, giving you more visibility to potential clients.

Should loan officers use YouTube for their marketing?

Creating video content is a great way for loan officers to begin building rapport with potential clients. In addition, this powerful tool, when connected to your website and complimentary articles, can help increase website traffic, driving interested and qualified potential clients directly to your door.

What kind of videos should you create?

Once you create a YouTube channel, you are all set to start creating and uploading content. But what kind of videos should you create? What type of content will drive the most clients to your business?

Here are a few topic ideas to give you a start. While many of these ideas work for your YouTube channel, others are great ways to add videos to other areas of your marketing strategy. For example, videos can boost email marketing, as well as your social media marketing.

Introductory messages

An introductory video is essential when starting your YouTube channel. Think about what you say when you meet potential clients in person and simply record a message that includes the same information. This is a great way for them to get to know you and make an initial connection.

Mortgage marketing videos

Once you have your introduction out of the way, it is time to create marketing videos. These videos are designed to essentially market yourself to potential clients. Share what sets you apart from your competition.

Mortgage news updates

The mortgage industry is constantly changing and sharing the industry changes and new updates in video form is a great way to connect with not only potential clients but also past clients, your colleagues, partners. When creating these videos, be sure to share the information in easy-to-understand terminology and end the video with an invitation to contact you for more information.

Holiday well-wishes

As the holidays approach, consider creating a holiday greetings video to share on your YouTube channel wishing your followers a wonderful holiday season. In addition to adding this video to your channel, you can also include the video in your email marketing when you send out holiday greetings to current and past clients, as well as business partners.

Mortgage process updates

The loan process can be time-consuming and stressful for your clients. While you will likely send emails or make phone calls in order to keep them in the loop, creating a process update video to include with your correspondence is a great way to personalize your correspondence and your clients are likely to appreciate the extra touch.

Follow-ups and thank you’s

Whether you just had a meeting with a potential client or business partner, you want to say thank you and follow up on things discussed in your meeting. Instead of simply sending an email, consider creating a personalized video instead. This adds a more personal touch and helps to build a relationship. In addition, a personalized thank you video is a great way to thank partners for referrals.

YouTube video marketing for loan officers

Successful YouTube video marketing is more than simply recording and uploading video. Everything from the content you create to how you optimize it online requires prior research and a thorough understanding of your target market.

Here we look at some tips that will help make your simple videos powerful marketing tools.

Keyword and audience research

Research is the foundation of any marketing strategy and creating a YouTube channel is no different. Before you record your first video, you need to spend some time on YouTube doing some keyword searches. What keywords deliver the type of content you are looking to share? Understanding these keywords will help you optimize your content. In addition, that audience is searching for this information on YouTube. So, how can you target that audience?

Videos with a purpose

Once you understand the keywords and your audience, you can create content that targets these keyword terms and your target viewers. Keep your videos short and to the point, so that they can easily receive and understand the information they are searching. Be sure to include ways for them to follow up and connect with you when they desire. If you have a large topic you want to cover, consider breaking it up into a series of smaller videos. This caters to viewers who often have short focus time, bringing them back to view subsequent videos. Always stick to your topic at hand and don’t forget to include a call to action at the end of every video.

Don’t forget the video description

While the content you record is important, writing a good YouTube video description is often more important. A good description not only helps pique the viewers’ interest but also provides a way for them to contact you. In addition, it helps with SEO. A good description helps the algorithms better understand your content and suggest it to new viewers. When writing your description, focus on your keywords and be sure to include a call to action with a link to your website.

Be creative and have fun

Don’t be afraid to be creative and have fun when making your videos. Remember, YouTube viewers want to be entertained. Consider your keywords and think of unique ways to captivate your audience.

Add free promotions

Everyone loves free things and YouTube viewers are no different. Consider offering a free item, such as a mortgage guide download or a free mortgage consultation, at the end of your videos.

Using YouTube to your advantage

Taking advantage of YouTube marketing is a powerful way to bring in qualified new leads and take your business to the next level. If you are looking for more information or other lead-generating tools, the team at Good Vibe Squad is here to help. To learn more about our Unfair Advantage, contact the team today for a consultation and let us help boost your business!

The blog post YouTube Video Marketing for Loan Officers is courtesy of: Good Vibe Squad

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Tips on How to Take Pictures with a Selfie Stick for Lead Generation

Lead generation is essential to your success as a loan officer, and you know that building and nurturing a relationship is an important component. Social media, such as Facebook or Instagram, allows you to create a profile and connect with potential clients. Putting your best face forward is essential to get the most of this online interaction. But you need the perfect photos!! Enter the selfie stick! Not only can using a selfie stick help improve your profile photos, but it can also open up the world to many new photo opportunities.

Here we take a closer look at using a selfie stick and how it can help you boost your lead generation.

How to use a selfie stick for photos

Using a selfie stick to take your photos is relatively easy, especially now given most phones and selfies sticks offer Bluetooth connectivity. Simply pair your phone with your selfie stick, mount your phone into the device, and use the button on the selfie stick to snap your photo. While the process is easy enough, it doesn’t guarantee perfect photos. Here we offer some tips on how to make the most of your selfie stick when taking photos.

Watch your lighting

When it comes to the perfect photo, lighting makes all the difference. You need to pay close attention to your light source and how harsh it may appear, as well as if it casts shadows on your image. Natural and indirect light is your best friend. If you find that indoor lighting casts shadows or odd coloring, consider moving near a window to harness more natural light.

Make sure your lens is clean

Before you snap your photo, be sure to take the time to clean the camera lens on your phone. Do this AFTER you have your phone in place on the selfie stick to eliminate fingerprints or smudges that can ruin the perfect picture.

Take advantage of angles

With a selfie stick, you can take advantage of angles. For example, taking an image from a higher vantage point can help remove shadows and provide you with a more complimentary view for your profile shots. However, when working with angles, you also must consider the selfie stick, making sure your stick doesn’t make it into the image.

Keep your arms out of the photo

As we mentioned above, when using a selfie stick, you must take care to avoid your arms in the image. Adjusting the angle of the camera (phone) can help minimize the stick in your photos and allow for the focus to remain on you.

Find a solid background

When taking a selfie, your focus is often on you. However, you must put just as much focus on the background of your photo. For more professional photos, consider a solid wall or office background that is not overly cluttered.

Get creative

A selfie stick is not just for selfies. They allow you to bring creative angles and new perspectives to your photos. For example, when signing the closing papers with your clients, consider adding a photo of them signing their papers from an above angle.

Offer a smile

When taking a selfie, don’t forget to smile. This creates a much more inviting and personal image for potential clients.

Using selfie stick photos for your mortgage business

A selfie stick can offer many options to help boost your social media presence and lead generation. Not only can you use it for photos but consider adding some videos as well. Here are some tips that you can use your selfie stick to implement.

• News – Whether you are adding industry news or company news, a video is a great way to give it a personal touch. Connect with your social media followers by creating a news video.
• Onsite – Capturing the signing of loan papers and handing the keys over to a new home buyer is a great way to provide them with a photo as well as show potential clients your success.
• Training videos – If you are adding new loan officers to your company, a training video is a great way to help them learn your company’s policies and their daily duties.
• Sales – Looking for a new and unique sales marketing idea? Consider making a video introducing yourself and talking about how you can meet the needs of your potential clients.
• Recruitment – Trying to hire new team members? Create a video with your current team and show potential prospects the amazing team they would be joining.
• Video FAQs – Have you had followers ask questions online? What better way them to answer them through a FAQs video. This allows you to provide the answer they are looking for while also providing a personal connection. Chances are you will have other potential clients with the same questions as well.
• Socials – Photos in general are a great way to connect with potential clients. Using your selfie stick to take photos of your office, closing signatures, awards, and more allows you to promote yourself and your company.

Selfie stick photos can boost lead generation

Adding a selfie stick to your marketing arsenal can help boost the quality of your images, as well as provide the opportunity to create unique views of your business. Adding these images to your social media accounts, as well as your website, can help nurture relationships and boost your lead generation.

If you are looking for additional lead generation, including automated marketing, the team at Good Vibe Squad is here to help you. To learn more about how we can help boost and automate your lead generation, contact us online today.

Tips on How to Take Pictures with a Selfie Stick for Lead Generation was originally published to: goodvibesquad.com

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Loan Officer Tips to Help Clients with Low Appraisal

Appraisals are a necessary part of the home buying process. However, the loan appraisal process can throw a wrench in the home buying or refinancing process when the appraisal comes back lower than expected. While low appraisals do not happen often (according to Fannie Mae they occur less than 8% of the time), they can be frustrating for both the buyer and the seller and can make your job closing a home sale much more difficult.

Here we offer some home appraisal tips as well as options when an appraisal comes in low.

How does a low appraisal happen?

Many different factors can affect an appraisal and any one of these can result in a lower appraisal than expected. Here we look at some of the most common contributing factors to a low appraisal.

• Home appearance – The appearance of a home makes a big difference when it comes to an appraisal. A professional cleaning (including attics, basements, and garages), proper staging, fresh paint, and a well-groomed yard can make a big difference.
• Housing market conditions – Appraisers use comps (comparable housing sales) in their efforts to make an appraisal. Understanding the current (within the last month or two) housing market and comparable property values is essential when anticipating an appraisal value.
• Seller overpricing – In many cases, the seller promotes a higher value with their listing price that is not in line with the current market value.
• Neighborhood foreclosures – Similar to housing market conditions, foreclosure rates can also play a role in the appraisal. Foreclosure homes in the neighborhood can reduce the appraisal a home receives.

What can you do when an appraisal comes in low?

If a low appraisal comes in, it doesn’t necessarily mean that the sale is done. There are some things you can do as a loan officer to help your buyers complete the sale. Here we offer several options that you can use to fight the low appraisal or work around it.

Filing an appraisal dispute

When a low appraisal comes in, it is important that you thoroughly look over the appraisal report. If you (along with the realtor or homeowner in the case of a refinance) believe that the appraisal is inaccurate, you can file an appeal on the decision with the appraisal company. While this process is typically difficult, providing supporting data, such as recent neighborhood comps that brought in higher values, you may have a good chance at receiving an adjustment.

Adjust the financing

If the appraisal comes in slightly lower than the offer price, you can offer the buyer adjustments to their financing that reduce the down payment and allow for money to be used as cash to make up the difference. For example, if the buyers offered $200,000 on a home and the appraisal came back at $190,000, financing the $190,000 with a reduced down payment, allowing them to pay the $10,000 difference at closing, could be a workable solution. While this may raise the monthly payment and interest rate for your buyer, it can provide a solution.

Compromise on the sales price

If evidence shows that the appraisal is accurate, it may be beneficial to talk with the seller about accepting an offer on par with the appraisal. In many cases, and as long as the difference is not too great, the seller may be willing to work with you and the buyer to facilitate the sale.

Getting a second appraisal

If you, the real estate agent, agent, the buyer, and the seller all believe that the home appraisal was incorrect, you can request a second appraisal. However, it may still not change, and you must consider the cost of the second appraisal.

Loan officer tips for the appraisal process

So, as a loan officer, what can you do to help reduce the risk of potential low appraisals and help your buyers or refinancers complete their financing needs? Here we look at some loan officer tips that can help reduce the headaches caused by low appraisals.

Establish clear expectations

Home appraisals can be confusing for borrowers, especially when they have already had a home inspection. Why do they need something else? Being clear with them about every aspect of the appraisal process is essential. If this is for a home refinance, explain all the information that they should share with the appraiser, such as additions or upgrades, unique home features, and comparable property sales. Also, let them know that appearance matters and to prepare their home in the best way possible to help ensure a favorable appraisal. Never promise an appraisal value to a buyer before the actual appraisal is received, as this can create false expectations when the actual appraisal doesn’t come through as promised.

Become familiar with the property

As a loan officer, it is in your best interest to become familiar with the local housing market and individual properties that your buyers are considering. Partnering with a local real estate agent can help give you a deeper understanding of the local market, what to look for in properties, and what to expect with the home appraisal. This can help you better inform your buyers and be ready for the appraisal. In addition, certain loans, such as FHA, may come with specific appraisal requirements, so knowing more about properties and the appraisal process can help you be better prepared.

Talk with the borrower

If a buyer is looking to refinance their home, talk with them about how to achieve the most out of their appraisal. Tips such as staging their home, making minor repairs, professional cleaning, and landscaping, and providing complete lists of improvements and additions can make a big difference to the appraiser.

The bottom line

While no buyer, seller, or loan officer wants to receive a low appraisal, they do occasionally present themselves. As a loan officer, understanding the housing market and the local for sale properties can help you avoid surprise appraisals and help your borrowers complete their purchases. If a low appraisal still occurs, knowing how to work around it can make you the hero for your buyers.

Loan Officer Tips to Help Clients with Low Appraisal is courtesy of: https://www.goodvibesquad.com

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