Have current mortgage market conditions made you want to pull out your hair and scream? While the negative consequences of this fallout are real and painful, as a mortgage broker or loan officer there are positive actions you can take right now to improve your situation. And there are lessons all of us can learn to prepare us for the future.
What can you do right now?
1. Be careful of lenders who discount rates. Ask yourself — “Why is this lender so hungry for my business?” The lenders who are instable and less likely to be around tomorrow are also the ones most likely to discount.
2. Remain educated in what loan products are available and what scenarios they are best for. With the constant changes in the marketplace today, this means putting in extra time, but knowing what’s out there may mean the difference between closing a loan and not closing it. Ask your lenders for training on their loan programs. They should also have product guidelines available for your use.
3. Become aware of your self-talk and attitude. There are things we cannot change and things we can. If we cannot change something, being pessimistic and gloomy will not improve anything. On the other hand, a hopeful, happy attitude and positive self-talk can improve a situation. For one, you’ll feel better. Second, you’ll have less stress, which translates into a clearer mind and the ability to make better decisions. Third, your clients will feel your positive attitude and are more likely to do business with you than if you were pessimistic.
What can you do for a better future?
1. Keep out of personal debt and make business debt as small as possible. Accelerate your mortgage payments so that you pay off your mortgage quickly. Purchase an automobile you can afford. Use a budget. Live within your means.
2. Build up a financial reserve. Having money saved up for emergencies both in your personal life and in your business brings peace of mind, helps you weather the storms, and gives you a better chance of surviving and making decisions based on the long-term consequences.
3. Make decisions based on long-term consequences. This includes being honest, focusing on quality loans, and doing what’s best for your borrowers. It may mean turning away some business, and can definitely entail hard work now that leads to profits in the future.
In summary, work with quality lenders, stay up-to-date on loan product changes, and maintain a positive attitude; stay out of debt, build up your savings, and make decisions based on long-term perspective. Taking these steps can help you survive today’s storm and prepare you against difficult times in the future.
By merlelepik from Pixabay