I apologize that I missed last week. There is a lot going on with me right now... vacation with my family and a book deadline! (You can find out more about my upcoming book on mortgagempowered.com) I appreciate your patience in the meantime.
Next week's webinar is about Developing Options and Benefits to Separate Yourself From Competition. In honor of that, I'd like to talk quickly about building value in a loan. When working with a customer, ask yourself this question:
Will the benefits outweigh the costs for the life of the loan?
Many times we provide a loan that helps the borrower today and even provides more benefit than cost in the first year or two, but long-term really hurts the borrower. Some examples would be where the loan:
1. Puts the borrower in much deeper debt than they were before with limited financial wherewithal to get them out, exacerbating the problem, or;
2. Puts the borrower in debt for a longer period of time, eating up any short term savings, or;
3. Creates a situation 2 or 3 years down the road, as is evident with many of the 2/28, 3/27 and Option ARM loans, that they cannot afford.
Although the initial benefits were there, the overall value is not! The focus was only on the short term need with no attention paid to the long term ramifications. As mortgage professionals, our #1 goal should always be to give our borrowers a loan that meets their needs for today and the future... one that is life-changing.
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