Clever CEO Luke Babich writes that working with a qualified lender can help you help clients, build your brand and add value to every real estate transaction.
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There are few certainties in the real estate industry. Whether it’s a buyer’s market or a seller’s market, no matter where the prices are, one thing is true: lenders are a critical part of the process, and your relationship with them can have a significant impact on your customer’s overall satisfaction.
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Since the vast majority of home buyers will be financing their home, having the lender ready to recommend is one of the best ways to demonstrate the true value of the commission. While no payment or direct benefit of any kind from the lender or service provider is allowed, there are still significant benefits to forming a partnership with a lender.
For example, a trusted lending partner can inform you about new products or promotions, provide priority support, or share their insights about the market. In some cases, they may even be more willing to work out solutions with clients who have difficulty obtaining financing, or even send the client to you if they’ve already been pre-approved.
In some cases, financing can make or break a deal, which means building a partnership is crucial. Here’s how to set them up.
12 Lender Partnership Strategies
Building a strong relationship with a mortgage lender doesn’t happen overnight. But with these valuable tips, agents will be well on their way to achieving this important goal.
1. Make sure it fits
Not every lender is right for every client. Some may specialize in large-ticket loans, while others may offer more creative solutions for self-employed workers or low-income buyers. Your job is to make sure the person you recommend is suitable for the loan assignment. To do this, build relationships with multiple lenders so you can provide appropriate guidance no matter who you work with.
2. Open communication
Start by establishing a clear and consistent line of communication with your lender. Some people prefer email, while others have messaging software that makes it easier to ask a quick question or clarify details. Set communication expectations early so that when problems arise, solutions can be easily found.
3. Personalization
If you work with a large bank, establishing a partnership can be challenging. If possible, establish a personal connection at a local branch and work directly with that person. This gives emails and text messages a face and makes contact easier.
4. Act with integrity
Demonstrating integrity is a basic expectation for real estate agents when dealing with clients, but this also applies to relationships with lenders. Be honest and consistent in your actions and communications, and take responsibility if mistakes are made. Partners will notice real estate agents who go the extra mile and hold themselves accountable.
5. Respect each other’s goals
Banks are interested in making good loans, just as you are interested in helping your customers. Respect that a lender is a business and it needs to meet specific benchmarks and goals. Understanding this is key to finding the right loan product and terms solution.
6. Consider training together
Small lenders or local branches of larger banks may be interested in hosting joint training seminars for clients. Education is key when buying and selling real estate, and working with a lender to explain the products and processes can help clients better understand what to expect.
7. Integrate technology
Nowadays, real estate agents do most of their work online. Work with lenders to determine the best platform to make it easy to share information and manage the process. Using the same tools results in better customer service, instant updates, and faster approvals.
8. Seek (and provide) feedback
Criticism is sometimes hard to hear, but it’s the only way to improve. Solicit feedback from clients and lenders to fully understand the workings of the relationship. Ask about what worked well, what relationships need improvement, and what opportunities were missed next time.
Sometimes, circumstances change and the previous partnership is no longer valid. This feedback can help you become a better agent for your client and determine if the partnership is still a good fit.
9. Develop customized solutions
Experienced real estate agents know that there are more options than standard financing solutions. When you build a strong partnership with your lender, it becomes easier to request customized products or packages that help close the deal. These tailored solutions take longer and are more complex, but they demonstrate your (and the lender’s) dedication to customer satisfaction.
10. Build a brand
Joint marketing with lenders can increase your visibility and help emphasize the benefits to current and future customers. Building a brand with a lender doubles your exposure and can attract a larger customer base for both parties.
11. Stay legal
The rules and regulations surrounding buying, selling, and borrowing are complex and ever-changing. Your trusted lender can walk you through these changes and understand what they can and cannot do; you’ll also need to do some legwork to make sure your relationship with them is fully compliant.
12. Be grateful
Showing your gratitude doesn’t have to be fancy. But this should become a regular feature of your partnership. When the transaction closes, say thank you via a personal message or phone call. This is especially important for complex or intricate deals where your lender partner has gone above and beyond, but don’t neglect to express gratitude for every closing.
Partnerships help plan for the future
Many real estate agents don’t spend enough time thinking about the future. What will your career look like in 10, 20 or 30 years? Are you planning to sell residential real estate, or would you like your career to take a different track?
Not only can a strong partnership with a lender support your current career, but it also means you can turn to them for help should you decide to change paths in real estate.
Luke Babich is CEO of Clever Real Estate in St. Louis. Connect with him on Facebook or Twitter.
