The key to avoiding mistakes is to be aware of them. While it’s impossible to avoid all mistakes in your mortgage business, there are some common pitfalls that many loan officers can avoid. The more you know about these errors, the better you’ll be able to prevent them from getting in the way of your success. Here are 5 of the most common mistakes loan officers make and some strategies to avoid them:
Getting too comfortable
If you want to experience continued success and business growth, getting stuck in a comfort zone is one of the worst things you can do. It’s natural to tend towards routine and comfort, but if you get stuck there, you’ll find yourself falling behind your evolving competition. The best ways to combat complacency and stagnancy are to stay open-minded and to take risks. Seek out new ideas, looking for better ways to do things, experiment with different methods, and allow your business to evolve.
Working in spurts
Another mistake that can hurt your business is inconsistency. You close a few deals and after the rush of success, you relax a bit and enjoy the lull. Then you realize your pipeline is drying up, and you go into overdrive prospecting and seeking out new clients. It’s easy to fall into this rhythm in the mortgage industry, but it isn’t supporting your long-term success. Instead of working in spurts, make prospecting a regular part of your routine so that you always have some irons in the fire. Of course, you put in the effort when business is slow, but when you continue putting in that same effort when business is doing well, you’ll set yourself up for greater growth and success.
Failing to leverage your SOI
Your SOI, or sphere of influence, includes your friends, family, acquaintances, and people you encounter through daily activities, hobbies, and shared interests. Too often, loan officers leave their work out of conversations with these people. They don’t want to sound like a salesperson or seem desperate for business. Successful LOs know how to make their work known, without coming off as an advertisement. When you’re passionate about the work you do and are genuinely interested in helping others, you can talk about your work without it sounding like a sales pitch.
One mistake that’s sure to sabotage your credibility, and therefore your mortgage business as a whole, is overpromising to clients. Making promises that you can’t feasibly deliver on is a sure way to lose a client’s trust. Though this often comes from a place of wanting to deliver the best service possible, it’s much better to be cautious and only promise what you can feasibly deliver. Clients would much rather be surprised by receiving more than they expected than less.
Neglecting your clients’ lifetime value
Mortgage lenders need to value each and every client they interact with. This is essential to delivering the best service you can and creating strong relationships. That connection shouldn’t end on the date of the closing. Neglecting the potential value of each client over a lifetime is a major mistake for loan officers. It’s important to continue to invest in past clients and to follow up occasionally. They’ll remember you when it comes time to purchase their second or even third home or when a friend or family member is looking for an LO they can trust.
In any business, there is always the potential for mistakes. The more aware you are of these mistakes, the less likely you’ll be to encounter them yourself. If you’re committed to building a sustainable mortgage business that continues to grow, don’t let these common pitfalls stand in your way. Are there any other mistakes that can limit a loan officer’s success? Share your thoughts!