A few weeks ago I was sitting in a Denny's and what I saw caused me to choke on my coffee. Three rows down in the corner was a loan officer with her laptop taking a loan application. Right there in the Denny's.
In my last column I shared with you my thoughts on how what we dress like determines if we get the deal or not. So let's assume you have taken my advice and are now taking the actual application.
The issue is all about who's in control.
Where you take an application is totally about who controls the meeting. Let's start with the worst possible place and then I will share the best with you and why it's the best.
WORST PLACE: The buyer's home. When you take an application at the buyer's home you are now on their home turf. They are in control and you are a "guest." So as far as positioning goes they totally control what happens. What distractions are allowed and which are not. What is said and when is in their control too since it is their home. If you have ever taken a loan app at someone's home you know exactly what I mean.
Then of course there is the whole issue of time. Most likely you are taking their application at night, maybe even late at night or on a weekend. This doesn't do much for your "expertise" in their minds and you will often rush or make mistakes because of it.
When was the last time your attorney or accountant came to your house? In fact when is the last time your doctor came to your home. I just called my 89 year old mother's doctor around 9 pm because she had an emergency issue. What I got was a recording that said we are closed. If this is an emergency call 911. NO JOKE!
I remember early on in my career, before I decided to be an expert in a niche and act like one, I went to a client's home at night. Pretty late, around 9:30pm. After some small talk and getting the process started we got to the good faith estimate. They started telling me that even though they had decided to lock in that they looked at the paper that morning and found a better rate.
I can't print here how I felt because of the language but I came up with an idea. I told them to call that company right now and ask their fees! Of course they were closed but I was trying to make a point of how great my service was, even as far going to their home 9:30 at night. Guess what - it didn't matter; they went with the other company to save $400.
All going to prove that what I thought was good service actually turned me into even more of a "head of lettuce" commodity in their eyes. Worse, the other company was their credit union - meaning they would have to take off work to meet them, which was something they told me they could never do.
GOOD PLACE: A good place to take the application is in your very own office. This way you are able to control the application. You are able to avoid the distractions. Most importantly - you are able to set the tone for the meeting.
Ready for a big secret? I totally control the set up of my meeting with clients before I even meet them. When they come to my office each of them waits for at least 10 minutes. They sit in my lobby and are offered coffee. The receptionist tells them that I am with a client and am just finishing up. They are then handed a book I wrote, and a book of testimonials and "success stories" featuring some of my past clients. The lobby also has a television that shows a loop of my TV appearances.
Now, after watching all of that, rate is rarely an issue and they truly feel they are in the presence of an expert.
Some of you may say "but, I don't have an office; I work from home."
Well, that's still no reason to meet someone at a Denny's or at his or her home during off hours. Here are some ideas and this will lead us right to the best place:
Find a local title company that would allow you to use their conference room. This allows you to also introduce your customer to the title company's services (win-win).
Find another professional in the area you could rent a conference room from monthly. Many of these small businesses could use some extra income right about now and could be a resource for your clients as well. Think: attorney; accountant; insurance agent; financial planner; etc.
There are companies that rent executive suites and conference rooms in the some of the nicest buildings in town. That's exactly what I did when I was first starting out and had very little capital. For $500 a month I got my own 12-foot office with furniture, a phone answered by a central receptionist and use of a conference room (although I needed to reserve the times in advance).
THE BEST PLACE: The best possible place is the Realtor's office. Why? Simple. Aside from it being a place where they buyer won't control you, like their home, it helps you provide what's known as "social proof." That means you are able to meet all the other Realtors (read: future sources of business). No begging or doughnuts. You are already "in the back" past the mean gatekeeper upfront.
When Realtors see you working with buyers taking apps or prequals they'll want to meet you. They see you already working and one of their peers using you. That just adds to your credibility and will of course add to your future business and relationships.
Tell me your thoughts below!
In your next Loan Officer Formula Marketing Tip I will show you that WHEN you take your application will have a big impact on whether you get the deal or not and also a secret script to use whenever you schedule an appointment for an application or prequalification.
Brian Sacks is the CEO of
