Building trust with borrowers is crucial for a smooth mortgage process. By consistently addressing their core concerns, you establish yourself as a reliable mortgage professional. Here are six key questions borrowers frequently ask and how to effectively answer them:
1. **What are the total costs involved?** Transparency is key. Provide a detailed breakdown of all costs, whether paid upfront or rolled into the loan. Thoroughly review the Loan Estimate (formerly the Good Faith Estimate) to ensure they understand each expense and its purpose.
2. **Why should I choose you as my lender?** Establish your credibility. Share your experience and track record. If you’re new, highlight your company’s history and resources. Reassure them of your commitment to a successful outcome.
3. **What is the estimated closing timeline?** Set realistic expectations. It’s better to overestimate and deliver early than to miss a deadline and create frustration. Provide a buffer to account for potential delays.
4. **Who will be my point of contact?** Clearly define communication channels. Inform the borrower who will be their primary contact throughout the process – whether it’s you, a loan processor, or someone else. Ensure they know who to reach out to for questions and updates.
5. **What are the next steps in the process?** Proactive communication prevents anxiety. Outline each stage of the loan process, including expected timelines for underwriting, appraisal, and other milestones. If there’s a typical waiting period, inform them upfront to avoid unnecessary inquiries.
6. **Am I getting the best possible loan terms?** Explain the factors influencing their loan terms, such as credit score, loan-to-value ratio, and current market conditions. Instill confidence that you’re working to secure the most favorable deal for their specific situation.